Cost centers are used for profit control
Q: 1. Differentiate between a profit center and an investment center.
A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
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Q: ____ 1.Which of the following is a responsibility center that incurs expenses,…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: Calculate the return on investment for each division. If required, round the ROI to the nearest…
A: Return on Investment is the Income which the Company has Earned for the investment on the project,…
Q: In a decentralized organization, Co. X, Division A is evaluated according to ROI, while Division B…
A: I am answering the first question as per company's policy Residual income is the income earned by…
Q: The measurement, % of market share, would most likely be placed in which perspective of Balanced…
A: Since you have asked multiple questions, we will solve the first question for you . If you want any…
Q: In each blank next to the following terms, place the identifying letter of its best description.
A: Here, we have to place the letter according to the definition
Q: Instructions: Designate the best answer for each of the following questions. 1.Which of the…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: CPAs, Inc. BOR, a decentralized organization, is interested in evaluating the performance of the two…
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Q: Which of the following describes the goal that should be pursued when setting transfer prices?…
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Q: 1. Compute ROI (use operating income before income tax) 2. In using EVA, what is the EVA of the…
A: Return on investment is the net income earned on the basis of investment earned by the company.
Q: Profit margin for an Investment center measures: Multiple Cholce Departmental contribution to…
A: Profit margin = Sales - Expenses Profit margin for an investment center = Investment center income
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A: I think, it is very important to measure the sales profit productivity since the business is highly…
Q: 1. Customer profitability analysis allows managers to do which of the following? a. Identify the…
A: Answer: As per Q/A guidelines, first question has been answered. Please repost remaining question.…
Q: The primary difference between profit centers and cost centers is that Multiple Cholce Profit…
A: Profit center is an organization department which aims at profit ascertinment and it increases…
Q: A department that incurs costs but does not generate revenue is calleda(n) (a) profit center.(b)…
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Q: A. Mastery Problem: Break-Even Point in Units and the Profit-Volume Graph CVP and the Contribution…
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Q: price
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Q: performance evaluation
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Q: Required: a) Advise the management by preparing a profit statement showing the profit for each of…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Select the best answer from the five listed below to fill in the blank. The best transfer price for…
A: transfer price are also known as the transfer cost which tells the amount that is set for the…
Q: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated…
A: Margin = Net operating income/ Sales *100 Turnover =Sales / Average operating assets ROI = Margin *…
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True and False questions - Indicate True or False
4. Cost centers are used for profit control.
5. Return on investment is used to compare divisions.
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- Cost-volume-profit analysis is useful for Question 8 options: 1) helping managers to answer "what-if" questions. 2) implementing a differentiation strategy. 3) eliminating uncertainty about external factors, such as interest rates. 4) for long-range planning. 5) assigning costs to products.____ 1.Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets? a. Cost center b. Revenue center c. Profit center d. Investment center ____ 2.Which one of the following is the most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center? a. Contribution margin b. Contribution net income c. Contribution gross profit d. Controllable margin ____ 3.Hanover Corporation desires to earn target net income of $42,000. The selling price per unit is $18, unit variable cost is $5.60, and total fixed costs are $123,912. How many units must the company sell to earn its target net income? a. 13,380 b. 9,993 c. 3,387 d. 9,217 ____ 4.Remark…Instructions: Designate the best answer for each of the following questions. 1.Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets? a. Cost center b. Revenue center c. Profit center d. Investment center 2.Which one of the following is the most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center? a. Contribution margin b. Contribution net income c. Contribution gross profit d. Controllable margin 3.Hanover Corporation desires to earn target net income of $42,000. The selling price per unit is $18, unit variable cost is $5.60, and total fixed costs are $123,912. How many units must the company sell to earn its target net income? a. 13,380 b. 9,993 c. 3,387 d. 9,217 4.Remark…
- Discuss how the behavior of division managers is likely to be affected by the use of: a. Return on Investment as a Performance Measure b. Residual Income as a performance measure (CMA Adapted)Which responsibility center's manager would be most concerned about the segment's return on investment? a. Revenue center b. Profit center c. Investment center d. Cost center1. Why is variable costing a preferred managerial tool in profit planning? 2. What is the difference between the condensed and expanded format of contribution margin statement? 3. How is cost-volume-profit analysis different from profit planning? 4. Compare the assumptions in profit planning and cvp analysis 5. What are the four levels of learning in profit planning? 6. Present a summary of formulas/effects for each level of learning in profit planning. 7. What are the two approaches in controlling profit? 8. What are the important points to remember in preparing the breakeven point graph? The cost-volume-profit (CVP) graph?
- A responsibility center structure that considers investments made by the operating segments by using a common cost of capital percentage is called_______. A. return on investment B. residual income C. a profit center D. a discretionary cost centerAs manager of department B in MarIeys Manufacturing, based on the costs you identified in the previous exercise for further research, how does this impact the financial performance of your department, and what might be some questions you want to ask or solutions you might propose to Marleys management?Classify each of the following performance measures into the balanced scorecard perspective to which it relates: financial perspective, internal operations perspective, learning and growth perspective, or customer perspective. A. Number of improved products B. Time from packaging to delivery or display C. Production costs D. Number of customer suggestions E. Sales mix revenues F. Number of repeat customers
- In each blank next to the following terms, place the identifying letter of its best description. 1. Cost center 2. Profit center 3. Responsibility accounting system 4. Service department 5. Indirect expenses 6. Controllable costs A. Incurs costs without directly yielding revenues. B. Provides information used to evaluate the performance of a department. C. Does not directly manufacture products but contributes to profitability of the entire company. D. Costs incurred for the joint benefit of more than one department. E. Costs that a manager has the ability to affect. F. Incurs costs and also generates revenues.1. Explain the concept of performance evaluation and control system.2. Enumerate the advantages of performance evaluation and control system.3. Explain the rationale of transfer pricing.4. What is return on investment, and how is it calculated?5. What are the advantages and limitations of return on investment?6. What are the measurement issues to be concerned about when using return on investment?7. Define productivity.8. Why is it important for a firm that follows a strategy of being the cost leader to improve productivity?9. What is incentive compensation?10. What type of organization is best suited to incentive compensation plans?A-1. Evaluate the performance of the two divisions assuming BMI users return on investment (ROI). A-2. Which division had the better performance?
