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Which of the following would be an argument against the use of net book value of assets in the computation of operating assets in Return on Investment calculations? Select one: a. It eliminates both age of equipment and method of depreciation as factors in ROI computations. b. It is consistent with how plant and equipment items are reported on the balance sheet. c. It allows the manager to replace old, worn-out equipment with a minimum adverse impact on ROI d. It allows the ROI number to increase over time as assets get older. A profit center manager: Select one: a. has the ability to produce revenue. b. would be held accountable for producing an adequate amount of operating income. c. is responsible for keeping the center's costs down. d. may be the manager who oversees the operations of a retail store. e. all of the above are correct. Which of the following measures would reflect the fixed supervisory costs incurred by a business segment? Segment Contribution Margin Profit Margin Controllable by Segment Profit Segment Manager Margin A. Yes No No B. Yes No Yes C. Yes Yes No D. Yes Yes Yes E. NON Yes Yes Select one: a. Choice A. b.Choice B c. Choice C. d. Choice D e. Choice E Charlene Company, which desires to enter the market with a new product, will perform the following tasks: 1-Design and engineer the product. 2-Determine the product's cost. 3-Determine the desired profit margin. 4-Determine the suggested selling price. If Charlene uses target costing, which task would the company perform last? Select one: a. 4. O b. 2. c. 3 d. 1 e. None of the answers is correct. Which of the following would be an argument against the use of net book value of assets in the computation of operating assets in Return on Investment calculations? Select one: a. It eliminates both age of equipment and method of depreciation as factors in ROI computations. b. It is consistent with how plant and equipment items are reported on the balance sheet. c. It allows the manager to replace old, worn-out equipment with a minimum adverse impact on ROI d. It allows the ROI number to increase over time as assets get older. A profit center manager: Select one: a. has the ability to produce revenue. b. would be held accountable for producing an adequate amount of operating income. c. is responsible for keeping the center's costs down. d. may be the manager who oversees the operations of a retail store. e. all of the above are correct. Which of the following measures would reflect the fixed supervisory costs incurred by a business segment? Segment Contribution Margin Profit Margin Controllable by Segment Profit Segment Manager Margin A. Yes No No B. Yes No Yes C. Yes Yes No D. Yes Yes Yes E. NON Yes Yes Select one: a. Choice A. b.Choice B c. Choice C. d. Choice D e. Choice E Charlene Company, which desires to enter the market with a new product, will perform the following tasks: 1-Design and engineer the product. 2-Determine the product's cost. 3-Determine the desired profit margin. 4-Determine the suggested selling price. If Charlene uses target costing, which task would the company perform last? Select one: a. 4. O b. 2. c. 3 d. 1 e. None of the answers is correct
