Questions from Managerial Accounting


Q: What are the three benefits of ROI? Explain how each benefit

What are the three benefits of ROI? Explain how each benefit can lead to improved profitability.

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Q: If sales and average operating assets for Year 2 are identical to

If sales and average operating assets for Year 2 are identical to their values in Year 1, yet operating income is higher, Year 2 turnover (compared with Year 1 turnover) will a. decrease. b. increase...

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Q: Can residual income or EVA ever be negative? What is the

Can residual income or EVA ever be negative? What is the meaning of negative residual income or EVA?

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Q: What is a transfer price?

What is a transfer price?

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Q: Division A manufactures an aircraft engine component with unit variable product cost

Division A manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A incurs shipping costs of $3 per unit for sales to outside parties only....

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Q: Division A manufactures an aircraft engine component with unit variable product cost

Division A manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A incurs shipping costs of $3 per unit for sales to outside parties only....

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Q: Which of the following is a perspective of the Balanced Scorecard?

Which of the following is a perspective of the Balanced Scorecard? a. Learning and growth (infrastructure) b. Internal business process c. Customer d. Financial e. All of these are perspectives of th...

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Q: The length of time it takes to produce a unit of output

The length of time it takes to produce a unit of output from the time raw materials are received until the good is delivered to finished goods inventory is called a. velocity. b. cycle time. c. manuf...

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Q: The practice of delegating authority to division-level managers by top

The practice of delegating authority to division-level managers by top management is a. decentralization. b. good business practice. c. centralization. d. autonomy. e. never done in business today.

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Q: Which of the following is not a reason for decentralizing?

Which of the following is not a reason for decentralizing? a. Training and motivating managers b. Unmasking inefficiencies in subdivisions of an overall profitable company c. Allowing top management...

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