Questions from Managerial Accounting


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 revenue center.

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Q: Based on your understanding of how chains are managed, would you

Based on your understanding of how chains are managed, would you agree or disagree that an outlet of a large department store chain should be treated as an investment center? What about the maintenanc...

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Q: Many multinational companies create wholly owned subsidiaries to do business in the

Many multinational companies create wholly owned subsidiaries to do business in the countries or regions where they operate. Are these wholly owned subsidiaries examples of investment centers? Explain...

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Q: Based on your understanding, which of the following does the manager

Based on your understanding, which of the following does the manager of a cinema control: costs, revenues, profits, and investment?

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Q: A home services company offers renovations, as well as heating,

A home services company offers renovations, as well as heating, air conditioning, and plumbing services, to its customers. Imagine that you are in the process of computing the income for the renovatio...

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Q: Suppose you are the manager of a fitness center that is one

Suppose you are the manager of a fitness center that is one of many in a chain. Give one example of a cost that you control and one example of a cost you do not control. Why is it important in this se...

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Q: Identify three responsibility centers in a fast-food restaurant and explain

Identify three responsibility centers in a fast-food restaurant and explain how they may interact.

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Q: A store is divided into four departments: automotive products, home

A store is divided into four departments: automotive products, home products, paint, and lumber. How would you assign the building costs, such as depreciation, to each of these departments?

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Q: Develop a Balanced Scorecard that the dean or director of your school

Develop a Balanced Scorecard that the dean or director of your school could use to evaluate the school’s operations. Be specific and indicate the purpose of each Balanced Scorecard measure.

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Q: A business whose investors require a return on investment of 8%

A business whose investors require a return on investment of 8% reports an income of $1 million on an investment of $20 million. What is the residual income for this business?

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