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1. In many cases, the amount of the transfor price doos not affect overall company profits. False 2. The managor of a rovenue conter is
1. In many cases, the amount of the transfor price doos not affect overall company profits. False 2. The managor of a rovenue conter is rosponsible for gonerating profits True False 3. Because prof t centers are only responsible for controlling costs, their performance reports include only information on actual costs versus budgeted costs. 0. A market based ransfer price is based on thewhen determining the transfer price. 8. sales price of good: C. contrbutico margin 9. The manager of a praft conter is responsible for generating revenues and managing teseciataievested capital 10. Evergreen Corporaion has two major divisians: Agricultural Products and Industrial Products. It provides the following Faloe False 4. Companies in whioh owners or top exooutives make all of tho planning, directing and controlling decisions are companies. nformation for the year B.segmaoted C.decentralzed D.centralized Agriculture Divislon 100,000 l Division 216,000 $5G,600,000 Inc the following information: 340,000 Profit margin ratio 155% Caleulate the prost margin taSo fer the Induatial Divisien af the eompary. Round your anawer to two dacimal placas) A. 5.06% 17.44% Asset turnover ratio times Net sales S500,000 D. 0.39% 11. Boata Products has an industrial mower division that aperates as a proft center. Below is a parially completed ranibilty ropart for tha fira: quartor Responsibilay Report Target rate of return 99% Calculate the return on investment A. 14 % 15% c.45% D4% 6. A cost center responsibiity cenon-_-_-. A. shows all costs incurred by the department B. ncludesdoprociation oxpenso C. is the same as a performance report D. typicallx focuses on the flexible budgot variance 7. The balanced scorecard focuses only on lead indicators, because lag indicators are not important for performance evaluation Actual Budget Budget Variance U/F Percentage Variance UF 068,000 3703,000 309.000 320.000 379.000 383.000 Variable Exponces Contribution Margin Traceable Fixed Expenses 371.000 368,000 S8,000 $15.000 Compute the percentage variance far the flexoble budget varance for traceable fued expenses Round your anawor to two docmal places B. 0.82% F C. 1.04% F D. 0.82% U False
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