SE_Ch12 - SAMPLE EXAM: CHAPTER 12 *SOLUTION FOUND AT END OF...

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SAMPLE EXAM: CHAPTER 12 ***SOLUTION FOUND AT END OF FILE*** 1. An increase in a corporation’s minimum acceptable return on investment would result in a. a decrease in residual income b. an increase in residual income c. a decrease in both residual income and actual return on investment. d. an increase in both residual income and actual return on investment. 2. A responsibility center in which the manager can influence costs, revenues and the allocation of investment funds is: a. a cost center b. a profit center c. an investment center d. a revenue center 3. There is only one acceptable transfer price to use when transferring products from one division to another within the same organization. A. True B. False 4. Last year, Ryan and Company had sales of $500,000, variable costs of $200,000, fixed expenses of $100,000, yielding operating income of $200,000. Average operating assets were $1,000,000. The general manager of the company wants to improve return on investment and believes that the company can increase sales volume by 10%. What
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This note was uploaded on 11/22/2011 for the course ACCT 230 taught by Professor Allen during the Fall '08 term at Texas A&M.

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SE_Ch12 - SAMPLE EXAM: CHAPTER 12 *SOLUTION FOUND AT END OF...

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