Question 1

Use the data below for Coffee & Cocoa Company
(a)Determine the divisional income from operations for the three regions by allocating the service department expenses proportionally to the sales of the regions.
(b)Determine the increase or decrease in net income if Region C did not operate.??

Accepted Answer

The answer of Use the data below for Coffee &...

Question 2

Match each definition that follows with the term (a-e) it defines.
-Income from operations divided by invested assets

Accepted Answer

Return on Investment (ROI) is defined as income from operations divided by invested assets.

Question 3

Piano Company's costs were over budget by $47,000. Piano Company is divided into two regions. The first region's costs were over budget by $5,000. Determine the amount that the second region's costs were over or under budget.

Accepted Answer

The answer of Piano Company's costs were over budget by...

Question 4

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h).
-Number of purchase requisitions

Accepted Answer

The number of purchase requisitions is a good activity base for the purchasing department as it measures the amount of work that department has to do in terms of processing purchase requests.

Question 5

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h).
-Number of employees

Accepted Answer

Human Resources departments often use the number of employees as an activity base for charging expenses because their activities and services are directly related to the number of employees in an organization.

Question 6

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h).
-Number of payroll checks

Accepted Answer

The number of payroll checks is a common activity base used to allocate payroll accounting expenses.

Question 7

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h).
-Allocated equally among divisions

Accepted Answer

The President's Office expenses are typically allocated equally among divisions as it is a central administrative function that benefits all divisions equally.

Question 8

The budget for Department 6 of Cardinal Company for the current month ending March 31 is as follows:​  ​During March, the costs incurred in Department 6 of Cardinal Company were materials, $204,000; factory wages, $285,000; supervisory salaries, $63,600; depreciation of plant and equipment, $35,000; power and light, $21,360; insurance and property taxes, $14,400; maintenance, $9,456.
(a)Prepare a budget performance report for the supervisor of Department 6 of Cardinal Company for the month of March.
(b)Are there any significant variances 
(5% or greater) of the budgeted amounts that should be examined by the supervisor?

Accepted Answer

The answer of The budget for Department 6 of Cardinal...

Question 9

Xang Company's costs were over budget by $46,000. Xang Company is divided into two regions. The first region's costs were over budget by $7,000.​Determine the amount that the second region's costs were over or under budget.

Accepted Answer

The answer of Xang Company's costs were over budget by...

Question 10

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h).
-Number of advertising campaigns

Accepted Answer

The activity base of number of advertising campaigns is most likely related to the Marketing department, as they are typically responsible for planning and executing advertising campaigns.

Question 11

Ratio of sales to invested assets

Accepted Answer

The ratio of sales to invested assets measures the efficiency of a company in generating sales from its invested assets. A higher ratio indicates that the company is generating more sales from its invested assets, which is generally a good sign.

Question 12

Using the data below for Ace Guitar Company, determine the divisional income from operations for the Regions A and B.​  Allocate service department expenses proportionally to the sales of each region. Round the percentage of sales allocation to one decimal place.

Accepted Answer

The answer of Using the data below for Ace Guitar...

Question 13

Match each definition that follows with the term (a-e) it defines.
-Ratio of income from operations to sales

Accepted Answer

Profit margin is the ratio of income from operations to sales. Controllable revenues refers to revenues that can be influenced by actions taken within the company. Investment turnover is the ratio of sales to total assets. Return on investment is the ratio of net income to total assets. Residual income is the income that remains after subtracting the minimum required return on investment.

Question 14

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h).
-Number of miles

Accepted Answer

The activity base of number of miles would be most appropriate for charging expenses to the Transportation department.

Question 15

Match each definition that follows with the term (a-e) it defines.
-Earned by profit centers

Accepted Answer

Controllable revenues are the revenues that profit centers earn and can directly influence through their operations and decisions.

Question 16

Some items are omitted from each of the following condensed divisional income statements of Demi Inc.?   (a)Determine the amount of the missing items, identifying them by letter 
(a-f).
(b)Based on income from operations, which division is the most profitable?

Accepted Answer

The answer of Some items are omitted from each of...

Question 17

A department store apportions payroll costs on the basis of the number of payroll checks issued. Accounting costs are apportioned on the basis of the number of reports. The payroll costs for the year were $231,000, and the accounting costs for the year totaled $75,500. The departments and the number of payroll checks and accounting reports for each are as follows:??  Determine the amount of 
(a) payroll cost and 
(b) accounting cost to be apportioned to each department.

Accepted Answer

The answer of A department store apportions payroll costs on...

Question 18

Match each definition that follows with the term (a-e) it defines.
-Income from operations minus minimum acceptable income from operations

Accepted Answer

Residual income is defined as income from operations minus minimum acceptable income from operations.

Question 19

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h).
-Number of computers in department

Accepted Answer

The activity base of "number of computers in department" is most appropriate for the Information Systems department, as this department is responsible for maintaining and updating the computers used by employees.

Question 20

Using the data from Terrace Industries, determine the divisional income from operations for Districts 1 and 2.​  Allocate service department expenses proportionally to the sales of each district.

Accepted Answer

The answer of Using the data from Terrace Industries, determine...

Quiz 23: Decentralized Operations

Use the data below for Coffee & Cocoa Company (a)Determine the divisional income from operations for the three regions by allocating the service department expenses proportionally to the sales of the regions. (b)Determine the increase or decrease in net income if Region C did not operate.??

Match each definition that follows with the term (a-e) it defines. -Income from operations divided by invested assets

Piano Company's costs were over budget by $47,000. Piano Company is divided into two regions. The first region's costs were over budget by $5,000. Determine the amount that the second region's costs were over or under budget.

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of purchase requisitions

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of employees

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of payroll checks

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Allocated equally among divisions

Xang Company's costs were over budget by $46,000. Xang Company is divided into two regions. The first region's costs were over budget by $7,000.Determine the amount that the second region's costs were over or under budget.

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of advertising campaigns

Ratio of sales to invested assets

Using the data below for Ace Guitar Company, determine the divisional income from operations for the Regions A and B. Allocate service department expenses proportionally to the sales of each region. Round the percentage of sales allocation to one decimal place.

Match each definition that follows with the term (a-e) it defines. -Ratio of income from operations to sales

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of miles

Match each definition that follows with the term (a-e) it defines. -Earned by profit centers

Some items are omitted from each of the following condensed divisional income statements of Demi Inc.? (a)Determine the amount of the missing items, identifying them by letter (a-f). (b)Based on income from operations, which division is the most profitable?

Match each definition that follows with the term (a-e) it defines. -Income from operations minus minimum acceptable income from operations

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of computers in department

Using the data from Terrace Industries, determine the divisional income from operations for Districts 1 and 2. Allocate service department expenses proportionally to the sales of each district.

Quiz 23: Decentralized Operations

Use the data below for Coffee & Cocoa Company (a)Determine the divisional income from operations for the three regions by allocating the service department expenses proportionally to the sales of the regions. (b)Determine the increase or decrease in net income if Region C did not operate.??

Match each definition that follows with the term (a-e) it defines. -Income from operations divided by invested assets

Piano Company's costs were over budget by $47,000. Piano Company is divided into two regions. The first region's costs were over budget by $5,000. Determine the amount that the second region's costs were over or under budget.

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of purchase requisitions

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of employees

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of payroll checks

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Allocated equally among divisions

Xang Company's costs were over budget by $46,000. Xang Company is divided into two regions. The first region's costs were over budget by $7,000.​Determine the amount that the second region's costs were over or under budget.

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of advertising campaigns

Ratio of sales to invested assets

Using the data below for Ace Guitar Company, determine the divisional income from operations for the Regions A and B.​ Allocate service department expenses proportionally to the sales of each region. Round the percentage of sales allocation to one decimal place.

Match each definition that follows with the term (a-e) it defines. -Ratio of income from operations to sales

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of miles

Match each definition that follows with the term (a-e) it defines. -Earned by profit centers

Some items are omitted from each of the following condensed divisional income statements of Demi Inc.? (a)Determine the amount of the missing items, identifying them by letter (a-f). (b)Based on income from operations, which division is the most profitable?

Match each definition that follows with the term (a-e) it defines. -Income from operations minus minimum acceptable income from operations

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) . -Number of computers in department

Using the data from Terrace Industries, determine the divisional income from operations for Districts 1 and 2.​ Allocate service department expenses proportionally to the sales of each district.

Xang Company's costs were over budget by $46,000. Xang Company is divided into two regions. The first region's costs were over budget by $7,000.Determine the amount that the second region's costs were over or under budget.

Using the data below for Ace Guitar Company, determine the divisional income from operations for the Regions A and B. Allocate service department expenses proportionally to the sales of each region. Round the percentage of sales allocation to one decimal place.

Using the data from Terrace Industries, determine the divisional income from operations for Districts 1 and 2. Allocate service department expenses proportionally to the sales of each district.