1.) Which of the choices below best describe the statements regarding Berks Co ? Show solutions to validate your answer to statement 1 and 4.

A. True,True,False,True,True

B. False,True,False,False,True

C. False,False,false,True,True

D. False,False,False,False,True

E. Some other answer.

2.) Which of the choices best describe the statements below?

A. True,False,True,False,True

B. Some other answer

C. All Statements are true.

D. False,False,True,True,True

3.) Which of the choices below best describe the statements related to Red Co. ? Show solution to validate your answer for statement 1.

A. Two statements are false

B. All Statements are false.

C. One statement is False.

D. All the statements are true.

E. Some other answer.

4.) The following data are for the latest year of operations of ABC Company:Sales.. P10,000,000 ; Net operating income ..P600,000 ; Average operating assets .. P3,000,000 ; Minimum required rate of return .. 15%. This will result to a division margin of 5.6% , return on investment of 20.3% and residual income of P129,800. *

A. true

B. false

C. Incomplete data

5.) Monstera Companys Adansoni Division has the following accounts last year:Sales P480,000 ; Cost of goods soldP222,000; Selling and administrative expense P210,000; Income tax rate 30% ; Total capital employed P300,000. Monstera Companys actual cost of capital is 10 percent. The value added returns amounts to P3,650.

A. True

B. None of the above.

C. False

on an Statement 1. SBU Strategic Business Unit) X makes part H at a marginal cost per unit of P100. If a unit is transferred internally to SBU Y P23 contribution is foregone external sale. The item can be bought outside for P150.SBU X will not accede to a transfer price of less than P125 per unit and SBU Y will not agree to a transfer price in excess of P150. The company will save P25 if it will buy externally. Statement 2: When there is no external market for the item being transferred, the transfer price should be greater than or equal to the variable cost in the supplying division, but less than or equal to the selling price minus variable costs (net marginal revenue) in the receiving division. Statement3: Where an imperfect external market price exists and unit variable costs and unit selling prices are constant, the opportunity cost of transfer will be external market price or external market price less savings in selling costs. Statement 4: Suppose a company evaluates divisional performance using both ROI and residual income. The company's minimum required rate of return for the purposes of residual income calculations is 12%. If a division has a residual income of P6,000, then its ROI is less than 12% Statement 5: Those fixed costs that arise because of the existence of the segment and that would disappear if the segment were eliminated are called traceable fixed costs of the segment. if they Statement 1: Department A has Operating profit of 30,000, Operating assets of 100,000./mputed interest of 12,000. Return on investment is 30% and Residual income is 18,000. An additional investment of P10,000 is offered that will increase operating income by P1,400. Department A manager would resist the new investment were to be judged on RI, but would welcome the investment if they were judged according to ROI since the there would be decrease of P200 in residual income from the investment, and an increase of 1.5% in ROI. Statement 2: If transfer prices are to be based on cost, then the costs should be actual costs rather than standard costs. Statement 3. A segment margin is computed by deducting variable and traceable fixed expenses from the sales of a segment. Statement 4: Labor turnover rate, Percentage of revenue generated by new products and services and Average time taken to develop new products and services are easures under innovation and learning, Statement 5: Responsibility accounting functions most effectively in decentralized organizations. Statement 1. Division A and B are both divisions of ABC Corp and are geographically located very close to each other.. Division B has asked Division A to provide it with 6,000 units of Material XP this year. Division B has received a bid from an outside supplier for the parts at a price of P17.50 per unit. Division A has the capability to produce 30,000 units of Material XP per year. Division A expects to sell 27,000 units of Material XP to external market this year at a price of P18.00 per unit. To fill the order from Division B. Division Awould have to cut back its sales to outside customers. Division A makes Material XP at a variable cost of P9.00 per unit. The cost of shipping the parts for external market is P1.00 per unit. Given the data above, we arrive at the following conclusion: P13.00 s Transfer price sP 17.50. Statement 2. In multi national transfer pricing, Import duties offset income tax effects and low transfer prices will be used to lessen import duties. Statement 3: Management control refers to the evaluation by upper level managers of the performance of mid level managers, while operational control means evaluation of upper level managers of operating level employees. Statement 4. Strategic performance ance measure is also known as responsibility accounting Statement 3: Allocated costs that cannot be assigned on the basis of use by the individual business segments must be allocated to responsibility centers based of some cost driver