Questions from Managerial Accounting

Q: A responsibility center in which a manager is responsible only for costs

A responsibility center in which a manager is responsible only for costs is a (n) a. investment center. b. revenue center. c. profit center. d. cost center.

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 return on investment (compared with Year 1 ROI) will a. decrease. b. i...

Q: Burt Inc. has a number of divisions, including the Indian

Burt Inc. has a number of divisions, including the Indian Division, a producer of liquid pumps, and Maple Division, a manufacturer of boat engines. Indian Division produces the h20-model pump that can...

Q: The key difference between residual income and EVA is that EVA

The key difference between residual income and EVA is that EVA a. uses the actual cost of capital for the company rather than a minimum required cost of capital. b. uses the minimum required cost of...

Q: If ROI for a division is 15% and the company’s minimum

If ROI for a division is 15% and the company’s minimum required cost of capital is 18%, then a. residual income for the division is negative. b. residual income for the division takes on a value betw...

Q: What is the difference between tactical and strategic decisions?

What is the difference between tactical and strategic decisions?

Q: What are some ways that a manager can identify a feasible set

What are some ways that a manager can identify a feasible set of decision alternatives?

Q: What role do past costs play in relevant costing decisions?

What role do past costs play in relevant costing decisions?

Q: Explain why depreciation on an existing asset is always irrelevant.

Explain why depreciation on an existing asset is always irrelevant.

Q: Give an example of a future cost that is not relevant.

Give an example of a future cost that is not relevant.