quiz8attempts - 1. Which of the following is a disadvantage...

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Unformatted text preview: 1. Which of the following is a disadvantage of decentralization? Student Response Value Correct Answer Feedback 1. Decisions made by one manager may negatively affect the profitability of the entire company. 2. Helps retain quality managers. 3. Decision making by managers closest to the operations. 4. Managers are able to acquire expertise in their areas of responsibility. Score: 0/1 2. The following data are taken from the management accounting reports of Dulcimer Co.: Income from operations Total service department charges If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that: Score: 0/1 3. In a profit center, the department manager has responsibility for and the authority to make decisions that affect: Score: 0/1 4. ABC Corporation has three service departments with the following costs and activity base: Service Department Graphics Production Accounting Personnel Department ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows: Micro Macro Super Direct Revenues $700,000 $850,000 $650,000 Direct Operating Expenses $50,000 $70,000 $100,000 # of copies made 20,000 30,000 50,000 # invoices processed 700 800 500 # of employees 130 145 125 What will the income of the Macro Division be after all service department allocations? Score: 0/1 5. Budget performance reports prepared for the vice-president of production would generally contain less detail than reports prepared for the various plant managers. Score: 0/1 6. Division X of O'Blarney Company has sales of $300,000, cost of goods sold of $120,000, operating expenses of $58,000, and invested assets of $150,000. What is the profit margin for Division X? Score: 0/1 7. The ratio of sales to investment is termed the rate of return on investment. Score: 0/1 8. The process of measuring and reporting operating data by areas of responsibility is termed responsibility accounting. Score: 0/1 9. Controllable expenses are those that can be influenced by the decisions of the profit center management. Score: 0/1 10. Chicks Corporation had $1,100,000 in invested assets, sales of $1,210,000, income from operations amounting to $242,000, and a desired minimum rate of return of 15%....
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This note was uploaded on 11/12/2010 for the course ACCT 48638 taught by Professor Sterns during the Fall '10 term at Riverside Community College.

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quiz8attempts - 1. Which of the following is a disadvantage...

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