ACC 650 Week 6 Quiz | Assignment Help | Grand canyon University
- Grand Canyon University / ACC 650
- 06 Nov 2019
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- ACC 650 Week 6 Quiz | Assignment Help | Grand canyon University
- 1. Crimson
Industries is in the process of evaluating allocation bases so that
selected costs can be charged to responsibility centers. Would the number
of employees likely be a good base for allocating the costs of Human
Resources, Building and Grounds, and Repairs and Maintenance to user
centers?
o Human Resources: Yes
Buildings and
Grounds: Yes
Repairs and
Maintenace: Yes
o Human Resources: Yes
Buildings and
Grounds: No
Repairs and
Maintenace: Yes
o Human Resources: Yes
Buildings and
Grounds: No
Repairs and
Maintenace: No
o Human Resources: No
Buildings and
Grounds: Yes
Repairs and
Maintenace: Yes
o Human Resources: No
Buildings and
Grounds: Yes
Repairs and
Maintenace: No
2.
Halpern Corporation is in the process of
overhauling the performance evaluation system for its San Diego manufacturing
division, which produces and sells parts that are popular in the aerospace
industry. Which of the following is least likely to be chosen
to evaluate the overall operations of the San Diego division?
o
Cost center.
o
Responsibility center.
o
Profit center.
o
Investment center.
o
The profit center and
investment center are equally unlikely to be chosen.
3.
A revenue center
manager:
o does
not have the ability to produce revenue.
o may
be involved with the sale of new marketing programs to clients.
o would
normally be held accountable for producing an adequate return on invested
capital.
o often
oversees divisional operations.
o may
be the manager who oversees the operations of a retail store.
4. A profit center manager:
o does
not have the ability to produce revenue.
o may
be involved with the sale of new marketing programs to clients.
o would
normally be held accountable for producing an adequate return on invested
capital.
o often
oversees divisional operations
o may
be the manager who oversees the operations of a retail store.
5
Which of the following describes the goal that should be pursued when setting
transfer prices?
o Maximize
profits of the buying division.
o Maximize
profits of the selling division
o Allow
top management to become actively involved when calculating the proper dollar
amounts.
o Establish
incentives for autonomous division managers to make decisions that are in the
overall organization's best interests (i.e., goal congruence).
o Minimize
opportunity costs.
6.
A division's return on investment may be improved by increasing:
o
cost of goods sold and
expenses
o
sales margin and cost
of capital
o
sales revenue and cost
of capital
o
capital turnover or
sales margin.
o
capital turnover or
cost of capital.
7.
Gulf Coast Enterprises (GCE) operates 87 stores and has three divisions:
Florida, Georgia, and Alabama. Which of the following costs would not appear on
Georgia’s portion of GCE's segmented income statement?
o
Costs related to
statewide advertising contracts, negotiated by Georgia’s divisional manager.
o
Variable sales
commissions paid to Georgia’s salespeople.
o
Compensation paid to
Georgia’s chief operating officer, as determined by GCE's management.
o
Georgia’s allocated
share of general GCE corporate overhead.
o
Compensation paid to
Georgia’s chief operating officer, as determined by GCE's management and
Georgia’s allocated share of general GCE corporate overhead.
8.
Which of the following would have a low likelihood of being organized as a
profit center?
o
A movie theater of a
company that operates a chain of theaters.
o
A maintenance
department that charges users for its services.
o
A maintenance
department that charges users for its services.
o
The mayor's office in a
large city.
o
Both the billing
department of an Internet Services Provider (ISP) and the mayor's office in a
large city.
9.
The profit margin controllable by the segment manager would not include:
o
variable operating
expenses
o
fixed expenses
controllable by the segment manager
o
a share of the company's
common fixed expenses.
o
income tax expense.
o
a share of the
company's common fixed expenses and income tax expense.
10.Distinguishing
between controllable and noncontrollable costs on a performance report may
result in:
o
an increase in the effectiveness
of a cost management system.
o
a decrease in goal
congruent behavior by managers.
o
an increase in the
quality of performance information
o
an increase in feelings
of blame by managers
o
an increase in the
effectiveness of a cost management system and an increase in the quality of
performance information.
11.
Cost pools should be charged to responsibility centers by using:
o
budgeted amounts of
allocation bases because the cost allocation to one responsibility center
should influence the allocations to others.
o
budgeted amounts of
allocation bases because the cost allocation to one responsibility center
should not influence the allocations to others.
o
actual amounts of
allocation bases because the cost allocation to one responsibility center
should influence the allocations to others.
o
actual amounts of
allocation bases because the cost allocation to one responsibility center
should not influence the allocations to others.
o
some other approach.
12.Which
of the following is an appropriate base to distribute the cost of building
depreciation to responsibility centers?
o
Number of employees in
the responsibility centers.
o
Budgeted sales dollars
of the responsibility centers.
o
Square feet occupied by
the responsibility centers.
o
Budgeted net income of
the responsibility centers.
o
Total budgeted direct
operating costs of the responsibility centers.
13.
Jamison Company had sales revenue and operating expenses of $5,000,000 and
$4,200,000, respectively, for the year just ended. If invested capital amounted
to $6,000,000, the firm's ROI was:
o
13.33%.
o
83.33%.
o
120.00%.
o
750.00%
o
None of the answers is
correct.
14.
The difference between the profit margin controllable by a segment manager and
the segment profit margin is caused by:
o
variable operating
expenses.
o
allocated common
expenses
o
fixed expenses
controllable by the segment manager.
o
fixed expenses traceable
to the segment but controllable by others.
o
sales revenue.
15.Compton
Corporation, with operations throughout the country, will soon allocate
corporate overhead to the firm's various responsibility centers. Which of the
following is definitely not a cost object in this situation?
o
The maintenance
department.
o
Product no. 675
o
Compton Corporation.
o
The Midwest division.
o
The telemarketing
center.
16.Foxmoor
Corporation uses an imputed interest rate of 13% in the calculation of residual
income. Division X, which is part of Foxmoor, had invested capital of
$1,200,000 and an ROI of 16%. On the basis of this information, X's residual
income was:
o
$24,960
o
$36,000.
o
$156,000.
o
$192,000
o
None of the answers is
correct.
17.
Standard costs rather than actual costs should be used in transfer-pricing
methods because:
o
financial accounting
rules (GAAP) require the use of standard costs.
o
tax rules require the
use of standard costs
o
standard costs are more
readily available than actual costs
o
standard costs
facilitate a professionally negotiated, amicable settlement between the buying
and selling divisions.
o
inefficient producing
divisions could pass on their inefficiencies to buying divisions in the
transfer price.
18.
Economic value added:
o
is a dollar amount
rather than a percentage.
o
uses a firm's
weighted-average cost of capital
o
uses total assets in
its computation and ignores current liabilities.
o
cannot be negative.
o
is both a dollar amount
rather than a percentage and uses a firm's weighted-average cost of capital.
19.
Which of the following transfer-pricing methods can lead to dysfunctional
decision-making behavior by managers?
o
Variable cost.
o
Full cost.
o
External market price.
o
A professionally
negotiated, amicable settlement between the buying and selling divisions.
o
None of the answers is
correct.
20.An
allocation base for a cost pool should ideally be:
o
machine hours.
o
a cost object.
o
a common cost.
o
a cost driver
o
direct labor, either
cost or hours.
USA 
India