Q1A selling division produces components for a buying division that is considering accepting a special order for the products it produces. The selling division has excess capacity. The minimum price the selling division would be willing to accept is

A.the selling division's full costs

B.the price that would allow the sellingdivision to cover its incremental cost of the special order

C.None of the given options

D.the buying division's outside purchase price

When a selling division transfers the productto the other division at the full cost, it may disadvantage:

A.None of the given options.

B.buying division.

C.selling division.

D.Head quarter

Seneca Ltd determined residual income for the year of $40 000. The company's cost of capital was 15 per cent, the investment turnover was 2.39, and the capital invested was $550 000. What was Seneca Ltd's profit during the year?

A.$67 500

B.None of the given options

C.$112 500

D.$107 500

Simona industries earned a residual income of $60 000 during the year. The cost of capital was 10 per centand the net profit was $280 000 during the year. What was the return on investment for the year?

A.15%

B.4.6%

C.12.7%

D.None of the given options.

ABC companyearned residual income of $60 000 during the year. The cost of capital was 10 per centand the net profit was $280 000 during the year. What was the invested capital for the year?

A.$ 1 200 000

B.None of the given options.

C.$ 22 000

D.$ 120 000

Managers tend to do the following actions to improve the return on investment while maintaining the long term organizational performance:

A.None of the given options.

B.retain old equipment

C.Replace raw material with the cheaper one.

D.an increaseinthe sales price.

Below are not the advantages of return on investment except:

A.it creates managerial dysfunctional behaviour

B.it focuses on revenue,expenseand profit

C.All are the disadvantages of return on investment

D.it focuses only on shor-term performance.

Monaco ends the month of October with a finished goods inventory of $15 000. The finished goods inventory at the end of September was $10 000 and the cost of goods sold during October was $20 000.

The cost of goods manufactured during the month of October was:

A.$35 000

B.$25 000

C.None of the given options.

D.$5 000

Refer to the following data.

Direct material used$250 000Selling costs$10 000Indirect labour$7 000Administrative costs$20 000Depreciation on factory equipment$60 000Direct labour$40 000Overtime premiums paid$20 000Indirect materials$45 000

The total conversion cost is:

A.None of the given options.

B.$172 000.

C.$290 000.

D.$40 000.

When raw materials are purchased by a manufacturer, those costs will be recorded in the general ledger as:

A.None of the given options.

B.inventory.

C.manufacturing costs.

D.cost of goods sold.