1) The excess of income from operations over a minimum acceptable income from operations is referred to as?

a. retained earnings

b. profit margin

c. residual income

d. none of these choices

2) A manager of a cost center has responsibility for

a. costs only

b. costs and investments

c. costs and profits

d. costs, profit and investments

3) The budget performance report received by the plant manager would be

a. a summary of all the operations in the company

b. a detailed itemized report for each of the plants

c. similar to an annual report

d. a summary of all the plants and departments under his or her responsibility

4) Service department charges are

a. allocated to profit centers based on the number of employees in the profit center

b. allocated to profit centers based on direct operating expenses

c. allocated to profit centers based on usage of the service by the profit center

d. all of the above

5) The manager of an investment center has responsibility and authority to make decisions that affect

a. sales

b. fixed assets

c. costs

d. sales, costs and fixes assets

7) according to the DuPont formula, two factors affect the rate earned on total assets. They are:

a. net income and investment turnover

b. profit margin and investment turnover

c. sales and assets

d. sales and investment turnover

8) A manager in a profit center has responsibility for all of the following except

a. revenues

b. salaries expense

c. materials

d. fixed assets

10) All of the following are advantages of decentralization except that it

a. provides managers with excellent training

b. helps retain managers

c. allows managers closest to the operations to make the decisions

d. delegates authority to top managers

Note: questions 6 and 9 are in the pictures. Please kindly respond to those two as well. Thank you.

em 9 of 10 Company has expenses of ss00,000. The department has provided a total of 2,000 hours of service for the period. The Northern and the Southern Region has used 1,425 hours of legal service during the period. How much should the Southern Region be charged for legal services? O a. $143,750 b, $250,000 O c. $356,250 O d. $212,500 Which of the following statements is true regarding decentralized operations? O a. Top management makes the operational decisions in a decentralized company, because they maintain operating expertise in ll product lines and services O b. Division managers in decentralized operations often work closely with customers. c, operational decisions made within a decentralized company always result in positive profits for the entire company. Od. Top management makes the operational decisions in a decentralized company, because they maintain daily contact with all operations