Question
41. At the end of the fiscal year, variances from standard costs are usually transferred to the a.factory overhead account b.direct labor account c.direct materials
41.
At the end of the fiscal year, variances from standard costs are usually transferred to the
a.factory overhead account
b.direct labor account
c.direct materials account
d.cost of goods sold account
42.
Separation of businesses into more manageable operating units is termed decentralization.
True
False
43.
A decentralized business organization is one in which all major planning and operating decisions are made by top management.
True
False
44.
The profit center income statement should include only revenues and expenses that are controlled by the manager.
True
False
45.
Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed direct operating expenses.
True
False
46.
If income from operations for a division is $5,000, invested assets are $25,000, and sales are $30,000, the profit margin is 20%.
True
False
47.
In evaluating the profit center manager, the income from operations should be compared
a.to historical performance or budget
b.to the total company earnings per share
c.across profit centers
d.to the competitor's net income
48.
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
Rails Division | Locomotive Division | Corporate Total | ||||
Cost of goods sold | $ 47,200 | $30,720 | ||||
Direct operating expenses | 27,200 | 20,040 | ||||
Sales | 108,000 | 78,000 | ||||
Interest expense | $ 2,040 | |||||
General overhead | 18,160 | |||||
Income tax | 4,700 |
The income from operations for the Rails Division is
a.$60,800
b.$33,600
c.$21,150
d.$8,700
49.
Chicks Corporation had $1,100,000 in invested assets, sales of $1,210,000, income from operations amounting to $302,500, and a desired minimum rate of return of 15%. The profit margin for Chicks is
a.22%
b.15%
c.27.5%
d.25%
50.
The balanced scorecard measures
a.external and internal information
b.only financial information
c.both financial and nonfinancial information
d.only nonfinancial information
51.
Standard cost variances are usually not reported in reports to stockholders.
True
False
52.
If Division Q's yearly income from operations was $30,000 on invested assets of $200,000, the rate of return on investment is 15%.
True
False
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started