ACCTG 225 – Widdison – 1:30 T/Th Quiz 5A – Chapters 11 & 12 – December 2, 2011 Student Name : ______ SOLUTION______________________________ Score: _______/15 Quiz Section: (Circle your TA/section) Kalen Carney: 10:30 11:30 Adam Ware: 8:30 9:30 You have 25 minutes to complete this quiz. Show ALL work on these pages, credit may not be given for correct answers with no support. Attempt all questions. TRUE/FALSE (1 point each) T / F 1. Consider a company that has only variable costs. All other things the same, an increase in unit sales will result in no change in the return on investment. F 2. If expenses exceed revenues in a department, then it would be considered a cost center. F 3. The use of return on investment as a performance measure may lead managers to make decisions that are not in the best interests of the company as a whole. T 4. The book value of a machine, as shown on the balance sheet, is relevant in a decision concerning the replacement of that machine by another machine. F MULTIPLE CHOICE (1 point each) 5. Which of the following will not result in an increase in the residual income, assuming other factors remain constant? A. An increase in sales.
This is the end of the preview. Sign up to
access the rest of the document.