4. (a)Define responsibility accounting.

2. Describe the FOUR (4) types of responsibility centres.

(4 marks)

3. TuahBerhad operates a Lekiu Division (that sells high performance sports cars) and a Lekir Division (that sells performance improvement parts for family cars). Below are the information related to the two divisions.

	Lekiu Division	Lekir Division
Total assets	RM33,000,000	RM28,500,000
Current Liabilities	RM6,600,000	RM8,400,000
Operating Income	RM2,475,000	RM2,565,000
Required rate of return	12%	12%

Calculate the items below for each division:

1. Return on Investment (ROI).

(3 marks)

2. Residual Income (RI)

(5 marks)

iii.Comment on the performance based on 4(a), 4(b) and above.

5. (a)Deano Products is a division of a major corporation. The following data are for the last year of operations:

Sales	RM19,080,000
Net operating income	RM591,480
Average operating assets	RM6,000,000
The companys minimum required rate of return	12%

Required to calculate the divisions:

1. margin.

(4 marks)

2. turnover.

(4 marks)

3. return on investment (ROI).

(4 marks)

4. residual income.

(4 marks)

.

2. Determine the appropriate types of responsibility centres for each of the following subunits:

i.Ticketing Department of Malaysia Airlines Systems.

(1 mark)

2. Claim Department in Prudential Insurance.

(1 mark)

3. Film theaters owned by Tanjung Village Cinema.

(1 mark)

1. The following sales and operating information are related to two divisions of Apple Sdn. Bhd. Sales Operating Income Operating Assets Minimum Required Rate of Return Ayfon (RM) 250,000 5,000 30,000 18% Ayndroid (RM) 185,000 3,500 27,000 11% (a) Determine each division's performance using the following method: Return on investment (ROI). (4 marks) ii. Residual income (RI). (4 marks) (b) If the company has to make only one choice of investment, which investment will be the manager's choice? Explain in detail. (3 marks) (c) Explain in detail the following responsibility centers: Cost centre (2 marks) II. Revenue centre. (2 marks) Investment centre (2 marks) 2. Titanic Corporation has three investment centre as below: Centre Sales Operating income Average operating assets Nike Pine (RM) (RM) 4,000,000 6,000,000 3,500,000 4,000,000 5,000,000 9,000,000 Feira (RM) 8,000,000 6,000,000 13,000,000 Required: (a) (b) Compute Return on Investment (ROI) for each centre. (6 marks) Based on 1(a) answer, give comment on the best performance center. (1 marks) (c) Calculate Residual Income (RI) for each centre if minimum return required is 20%. (6 marks) (d) List TWO (2) techniques to increase ROI. (2 marks) 3. The following sales and operating Information are related to three divisions of Alami Sdn. Bhd. Sales Operating Income Operating Assets Minimum Required Rate of Return Ibnu Sina (RM) 350,000 25,000 120,000 15% Ibnu Majah (RM) 285,000 13,800 90.000 13% Ibnu Khaldun (RM) 415,000 37,600 245,000 16% Required: (a) Determine each division's performance using the following method: Return on investment (ROI). (6 marks) ii. Residual income (RI). (6 marks) (b) If the company required a minimum of 15% return on investment, which divisions are currently perform? Justify your answer based on your answer in 3(a). (6 marks) 6. The following sales and operating information are related to three divisions of Ubiquitous Sdn. Bhd. Laptop Smartphone Tablet (RM) (RM) Sales 396,000 460,000 526.000 Operating income 20.800 34.000 45,000 Operating assets 60,000 237,000 352,000 Minimum required 12% 10% 19% rate of return (RM) Required: (a) Determine each department's performance using the following method: i Return on investment (ROI). (6 marks) Residual income (RI) (6 marks) (b) If the company required a minimum of 10% return on investment, which divisions are currently performing in accordance to the company's requirement? Justify your answer based on your answer in 3(a). Conclude your argument with the best performing department between the three, taking into account both their ROI and RI (6 marks)