Question 1

The margin for the past year was?

Accepted Answer

A)  8.0%. 
B)  11.2%. 
C)  14.4%. 
D)  19.2%. 
A)  8.0%. 
B)  11.2%. 
C)  14.4%. 
D)  19.2%.

Question 2

The following data have been extracted from the year-end reports of two companies-Company X and Company Y:

Accepted Answer

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Question 3

For the past year,the minimum required rate of return was?

Accepted Answer

A)  11%. 
B)  12%. 
C)  13%. 
D)  14%. 
A)  11%. 
B)  12%. 
C)  13%. 
D)  14%.

Question 4

Stephanie Co.'s managers are considering alternative strategies to improve ROI from its current budgeted 20% for the coming year.Alternative 1 has more money spent on advertising to increase sales while alternative 2 has the budget for meals and entertainment expenses eliminated with a drop off in sales as a result.Adjustments to operating assets are anticipated in each of the two alternatives as well.The numbers as in the original budget and in the two alternatives are set out below:   What is the relative ranking based upon ROI of the above three choices (highest to lowest)?

Accepted Answer

A)  Original Budget,Alternative 1,Alternative 2. 
B)  Alternative 1,Alternative 2,Original Budget. 
C)  Alternative 2,Original Budget,Alternative 1. 
D)  Original Budget,Alternative 2,Alternative 1. 
A)  Original Budget,Alternative 1,Alternative 2. 
B)  Alternative 1,Alternative 2,Original Budget. 
C)  Alternative 2,Original Budget,Alternative 1. 
D)  Original Budget,Alternative 2,Alternative 1.

Question 5

Reed Company's sales last year totalled $150,000 and its return on investment (ROI)was 12%.If the company's turnover was 3,then its net operating income for the year must have been?

Accepted Answer

A)  $2,000. 
B)  $6,000. 
C)  $18,000. 
D)  $12,000. 
A)  $2,000. 
B)  $6,000. 
C)  $18,000. 
D)  $12,000.

Question 6

If the South Division wants a residual income of $50,000 and the minimum required rate of return is 10%,the annual turnover will have to be?

Accepted Answer

A)  0.32. 
B)  0.80. 
C)  1.25. 
D)  1.50. 
A)  0.32. 
B)  0.80. 
C)  1.25. 
D)  1.50.

Question 7

Which of the following are benefits of decentralization? I Giving a manager of a division greater decision making control over his/her division provides vital training for a manager who is on the rise in the company.
II Managers at corporate headquarters have greater control in seeing that the goals of the company are realized.
III Added decision-making authority and responsibility often leads to increased job satisfaction and often persuades a manager to put forth his/her best efforts.

Accepted Answer

A)  Only I and II. 
B)  Only II and III. 
C)  Only I and III. 
D)  Only I. 
A)  Only I and II. 
B)  Only II and III. 
C)  Only I and III. 
D)  Only I.

Question 8

Since the sales figure is neutral in the return on investment (ROI)formula ROI = Margin × Turnover,a change in total sales will not affect ROI.

Accepted Answer

A) True 
 B)False

Question 9

Centralized organizations normally include multiple business segments.

Accepted Answer

A) True 
 B)False

Question 10

The return on investment can ordinarily be improved by either increasing sales,reducing expenses,or reducing operating assets,assuming each of the other factors remain unchanged.

Accepted Answer

A) True 
 B)False

Question 11

Keeping all other factors constant,which of the following would not cause an increase in the ROI?

Accepted Answer

A)  Increase in liabilities. 
B)  Increase in sales. 
C)  Reduction in expenses. 
D)  Reduction in operating assets. 
A)  Increase in liabilities. 
B)  Increase in sales. 
C)  Reduction in expenses. 
D)  Reduction in operating assets.

Question 12

Emiley Inc. ,newly incorporated on January 2,earned $100,000 in net operating income in its first year of operations which ended December 31.Operating assets,which increased evenly throughout the year,totalled $200,000 at year end.ROI for the year was?

Accepted Answer

A)  0%. 
B)  50%. 
C)  100%. 
D)  200%. 
A)  0%. 
B)  50%. 
C)  100%. 
D)  200%.

Question 13

The return on investment for the past year was?

Accepted Answer

A)  8%. 
B)  20%. 
C)  28%. 
D)  36%. 
A)  8%. 
B)  20%. 
C)  28%. 
D)  36%.

Question 14

In performing return on investment calculations,it is safe to assume that total assets from the balance sheet may be used in all calculations.

Accepted Answer

A) True 
 B)False

Question 15

Financial data for Beaker Company for last year appear below:

Accepted Answer

@#IMG-DLM& 
 @#IMG-DLM& 
The company paid dividends of $2,10

Question 16

Last year,a company had stockholder's equity of $160,000,net operating income of $16,000 and sales of $100,000.The turnover was 0.5.The return on investment (ROI)was?

Accepted Answer

A)  7%. 
B)  8%. 
C)  9%. 
D)  10%. 
A)  7%. 
B)  8%. 
C)  9%. 
D)  10%.

Question 17

The performance of the manager of Division A is measured by residual income.Which of the following would increase the manager's performance measure?

Accepted Answer

A)  Increase in average operating assets. 
B)  Decrease in average operating assets. 
C)  Increase in minimum required return. 
D)  Decrease in net operating income. 
A)  Increase in average operating assets. 
B)  Decrease in average operating assets. 
C)  Increase in minimum required return. 
D)  Decrease in net operating income.

Question 18

For the past year,residual income was?

Accepted Answer

A)  $0. 
B)  $30,000. 
C)  $45,000. 
D)  $75,000. 
A)  $0. 
B)  $30,000. 
C)  $45,000. 
D)  $75,000.

Question 19

Financial data for Bingham Company for last year appear below:

Accepted Answer

@#IMG-DLM& 
The "Investment in Carr Company" on th

Question 20

A company had the following results last year: sales,$700,000;return on investment,28%;and margin,8%.The average operating assets last year were?

Accepted Answer

A)  $200,000. 
B)  $540,000. 
C)  $2,450,000. 
D)  $2,500,000. 
A)  $200,000. 
B)  $540,000. 
C)  $2,450,000. 
D)  $2,500,000.

The margin for the past year was?

The following data have been extracted from the year-end reports of two companies-Company X and Company Y:

For the past year,the minimum required rate of return was?

Reed Company's sales last year totalled $150,000 and its return on investment (ROI)was 12%.If the company's turnover was 3,then its net operating income for the year must have been?

If the South Division wants a residual income of $50,000 and the minimum required rate of return is 10%,the annual turnover will have to be?

Since the sales figure is neutral in the return on investment (ROI)formula ROI = Margin × Turnover,a change in total sales will not affect ROI.

Centralized organizations normally include multiple business segments.

The return on investment can ordinarily be improved by either increasing sales,reducing expenses,or reducing operating assets,assuming each of the other factors remain unchanged.

Keeping all other factors constant,which of the following would not cause an increase in the ROI?

Emiley Inc. ,newly incorporated on January 2,earned $100,000 in net operating income in its first year of operations which ended December 31.Operating assets,which increased evenly throughout the year,totalled $200,000 at year end.ROI for the year was?

The return on investment for the past year was?

In performing return on investment calculations,it is safe to assume that total assets from the balance sheet may be used in all calculations.

Financial data for Beaker Company for last year appear below:

Last year,a company had stockholder's equity of $160,000,net operating income of $16,000 and sales of $100,000.The turnover was 0.5.The return on investment (ROI)was?

The performance of the manager of Division A is measured by residual income.Which of the following would increase the manager's performance measure?

For the past year,residual income was?

Financial data for Bingham Company for last year appear below:

A company had the following results last year: sales,$700,000;return on investment,28%;and margin,8%.The average operating assets last year were?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

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Exam 12: Capital Budgeting Decisions

The margin for the past year was?

The following data have been extracted from the year-end reports of two companies-Company X and Company Y:

For the past year,the minimum required rate of return was?

Reed Company's sales last year totalled $150,000 and its return on investment (ROI)was 12%.If the company's turnover was 3,then its net operating income for the year must have been?

If the South Division wants a residual income of $50,000 and the minimum required rate of return is 10%,the annual turnover will have to be?

Since the sales figure is neutral in the return on investment (ROI)formula ROI = Margin × Turnover,a change in total sales will not affect ROI.

Centralized organizations normally include multiple business segments.

The return on investment can ordinarily be improved by either increasing sales,reducing expenses,or reducing operating assets,assuming each of the other factors remain unchanged.

Keeping all other factors constant,which of the following would not cause an increase in the ROI?

Emiley Inc. ,newly incorporated on January 2,earned $100,000 in net operating income in its first year of operations which ended December 31.Operating assets,which increased evenly throughout the year,totalled $200,000 at year end.ROI for the year was?

The return on investment for the past year was?

In performing return on investment calculations,it is safe to assume that total assets from the balance sheet may be used in all calculations.

Financial data for Beaker Company for last year appear below:

Last year,a company had stockholder's equity of $160,000,net operating income of $16,000 and sales of $100,000.The turnover was 0.5.The return on investment (ROI)was?

The performance of the manager of Division A is measured by residual income.Which of the following would increase the manager's performance measure?

For the past year,residual income was?

Financial data for Bingham Company for last year appear below:

A company had the following results last year: sales,$700,000;return on investment,28%;and margin,8%.The average operating assets last year were?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters