Questions from Managerial Accounting


Q: Why did accountants develop the expression “soft number”?

Why did accountants develop the expression “soft number”?

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Q: Green Company has prepared the following information for three of its divisions

Green Company has prepared the following information for three of its divisions: Required (a) Compute each division’s return on investment and residual income, assuming a 10% cost o...

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Q: Eta Company would like to examine the sales margin and asset components

Eta Company would like to examine the sales margin and asset components of return on investment for three of its divisions and has accordingly prepared the following information: Required (a) Compute...

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Q: Division Q’s current turnover is 2 and its return on sales ratio

Division Q’s current turnover is 2 and its return on sales ratio is 0.8. The division is considering a sales promotion that would increase its current return on sales ratio by 20%, but decrease its tu...

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Q: The following information pertains to VI Division, which has $1

The following information pertains to VI Division, which has $1,400,000 in investments. The company’s cost of capital is 10%. Required (a) What is the division’s...

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Q: For-profit organizations face a requirement to earn at least a

For-profit organizations face a requirement to earn at least a minimum-level return on investment. Some businesses rely on high ratios of income to sales; other businesses rely on high ratios of sales...

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Q: Give an example of why using units, rather than the value

Give an example of why using units, rather than the value of the products produced, in the numerator of a productivity ratio may give a misleading picture of the process that produced that output.

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Q: Consider the manager of a store in a fast food restaurant chain

Consider the manager of a store in a fast food restaurant chain. Construct a Balanced Scorecard to evaluate that manager’s performance.

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Q: Based on an analysis of operations, a company making sporting goods

Based on an analysis of operations, a company making sporting goods has determined that the income provided by its golf, ski, tennis, and football product lines are $3.5 million, $7.8 million, $2.6 mi...

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Q: Give an example of a responsibility center that is properly treated as

Give an example of a responsibility center that is properly treated as a cost center.

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