Question
19) Decentralization is: A.a practice that is not recommended. B. allowing lower-level managers to implement decisions made by top management. C. the practice of allowing
19)
Decentralization is:
A.a practice that is not recommended.
B. allowing lower-level managers to implement decisions made by top management.
C. the practice of allowing lower-level managers to participate in the budget.
D. the practice of delegating authority to lower-level managers.
20)
A center where a manager is responsible only for sales is called:
A. a profit center.
B. an investment center.
C. a revenue center.
D. a cost center.
21)
Which of the following is not a transfer pricing policy?
A. Cost-based price
B. Negotiated price
C. Market price
D. Exchange price
23)
The Pacific Division reported the following results for the previous quarter: Sales Revenues: $560,000 Cost of Goods Sold: (400,000) Gross Margin: 160,000 Selling and administrative expenses: 100,000 Operating income: 60,000 Operating assets at the beginning of the quarter were $240,000; at the end of the quarter, they were $300,000. The company requires a minimum rate of return of 13%. The division's turnover was:
A. 2.33
B. 2.38
C. 1.87
D. 2.07
27)
Which of the following is not an example of a qualitative factor?
A. reliability of a suppleri
B. cost of shipping
C. labor relations with employees
D. quality of a product
28)
In short-term decision making, sunk costs:
A. do not include depreciation on equipment purchased in the past.
B. should not be included in the decision analysis.
C. should be identified and included if they will affect future periods
D. are those costs that do not differ across alternatives.
29)
In a keep-or-drop decision:
A. variable-costing income statements should be provided.
B. fixed costs should be ignored.
C. sunk costs should be included.
D. absorption-costing income statements should be provided.
30)
Target costing is useful because:
A. it forces managers to control costs.
B. it is useful in the decision to keep inventory.
C. it includes all manufacturing costs.
D. it considers how much it costs to make a product before setting the selling price.
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