Question 1

A responsibility report provided to a manager typically includes:

Accepted Answer

A)  A list of all the items under the manager's control. 
B)  The budgeted amount for each item on the report. 
C)  The differences between the budgeted and actual amounts for each item on the report. 
D)  All of these are correct answers. 
A)  A list of all the items under the manager's control. 
B)  The budgeted amount for each item on the report. 
C)  The differences between the budgeted and actual amounts for each item on the report. 
D)  All of these are correct answers.

Question 2

If Pascal Company's turnover (asset utilization)measure is 2.5 and its margin is 7.5%,its ROI is 18.75%.

Accepted Answer

A) True 
 B)False

Question 3

Organization charts are drawn in a hierarchical fashion,with low-level managers shown at the bottom of the chart,middle-level managers in the middle of the chart,and senior-level managers shown at the top of the chart.

Accepted Answer

A) True 
 B)False

Question 4

How might return on investment be used in making resource allocation decisions within an organization?

Accepted Answer

Return on investment may be calculated

Question 5

Match between columns
                        Premises:  Practice of holding a manager responsible for revenue and expense items over winch he or she exercises predominant control
 Type of responsibility center where the manager influences only costs and is held accountable for a specific output at a given level of cost
 Measure of the ability of a firm or segment within a firm to utilize available resources effectively to generate a positive return for shareholders
 Transfer price based on the external market price less any cost savings
 Situation that motivates a manager to act in his or her own best interest even though the corporation as a whole may suffer
 The point in an organization where the control over revenue or expense items is located
 Transfer price that is based on the historical or standard cost incurred by the supplying segment
 Type of responsibility center where the manager can influence revenues expenses, and capital invested in his or her center to attain the best performance possible
 Type of responsibility center where the manager can influence both revenues and expenses for his or her center
 Approach that evaluates a manager on his or her ability to maximize the dollar value of earnings above some targeted level of earnings
 Reports comparing budgeted and actual controllable costs for each center within a firm
 When variances from the budget are emphasized in reporting procedures so that management concentrates its attention on those variances from the budget
 Transfer price that is established by agreement of both the selling and buying segments of the firm
 Practice of delegating authority and responsibility for the operation of business segments

Accepted Answer

The Answer of Controllability concept and Cost-based transfer price and is...

Question 6

If a company is unable to use market-based transfer prices,the next best alternative is to use a price:

Accepted Answer

A)  Based on negotiation. 
B)  Based on variable cost. 
C)  Based on standard cost. 
D)  Set by senior management. 
A)  Based on negotiation. 
B)  Based on variable cost. 
C)  Based on standard cost. 
D)  Set by senior management.

A responsibility report provided to a manager typically includes:

If Pascal Company's turnover (asset utilization)measure is 2.5 and its margin is 7.5%,its ROI is 18.75%.

Organization charts are drawn in a hierarchical fashion,with low-level managers shown at the bottom of the chart,middle-level managers in the middle of the chart,and senior-level managers shown at the top of the chart.

How might return on investment be used in making resource allocation decisions within an organization?

If a company is unable to use market-based transfer prices,the next best alternative is to use a price:

Management Accounting and Corporate Governance

Cost Behavior, operating Leverage, and Profitability Analysis

Analysis of Cost, volume, and Pricing to Increase Profitability

Cost Accumulation,tracing,and Allocation

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Job-Order, process, and Hybrid Costing Systems

Financial Statement Analysis

Statement of Cash Flows

Filters

Exam 9: Responsibility Accounting

A responsibility report provided to a manager typically includes:

If Pascal Company's turnover (asset utilization)measure is 2.5 and its margin is 7.5%,its ROI is 18.75%.

Organization charts are drawn in a hierarchical fashion,with low-level managers shown at the bottom of the chart,middle-level managers in the middle of the chart,and senior-level managers shown at the top of the chart.

How might return on investment be used in making resource allocation decisions within an organization?

If a company is unable to use market-based transfer prices,the next best alternative is to use a price:

Management Accounting and Corporate Governance

Cost Behavior, operating Leverage, and Profitability Analysis

Analysis of Cost, volume, and Pricing to Increase Profitability

Cost Accumulation,tracing,and Allocation

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Job-Order, process, and Hybrid Costing Systems

Financial Statement Analysis

Statement of Cash Flows

Filters