Segment reporting and cost hierarchies. (Z. Iqbal) (20 minutes) Koala Ltd has only two divisions: A and

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Segment reporting and cost hierarchies. (Z. Iqbal) (20 minutes) Koala Ltd has only two divisions: A and B. The following data apply to Division A.

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REQUIRED 1. Prepare a segment report for Division A that differentiates between the performance of the manager and the performance of the division.
2. Division B’s net revenue is EUR 3 million and its contribution margin is EUR 1.2 million. The segment margin (contribution by division of Division B)
is EUR 700,000.

a. Determine fixed costs traceable to Division B.

b. Determine variable costs of Division B.
3. Koala’s corporate costs unallocated to divisions are EUR 400,000. Determine Koala’s income. lop4

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Management And Cost Accounting

ISBN: 9780130805478

1st Edition

Authors: Charles T. Horngren, Alnoor Bhimani, Srikant M. Datar, George Foster

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