Financial Decision-Making and Managerial Accounting Analysis

Preview (3 of 7 Pages)

100%

Financial Decision-Making and Managerial Accounting Analysis - Page 1 preview image

Loading page ...

Financial Decision-Making and Managerial Accounting AnalysisQuestion :(TCO D) Return on investment (ROI) is equal to the margin multipliedbyStudent Answer:sales.turnover.average operating assets.residual income.InstructorExplanation:Chapter 12Points Received:5 of 5Comments:2.Question :(TCO D) For which of the following decisions are opportunity costsrelevant?The decision to makeor buy a needed partThe desision to keep ordrop a product line(A)YesYes(B)YesNo(C)NoYes(D)NoNoStudent Answer:Choice AChoice BChoice CChoice DInstructorExplanation:Chapter 13Points Received:5 of 5Comments:

Financial Decision-Making and Managerial Accounting Analysis - Page 2 preview image

Loading page ...

Financial Decision-Making and Managerial Accounting Analysis - Page 3 preview image

Loading page ...

3.Question :(TCO D) Last year, the House of Orange had sales of $826,650, netoperating income of $81,000, and operating assets of $84,000 at thebeginning of the year and $90,000 at the end of the year. What was thecompany's turnover, rounded to the nearest tenth?StudentAnswer:9.510.29.89.2InstructorExplanation:Turnover = Sales / Average operating assetsTurnover = $826,650 / [($84,000 + $90,000) / 2] = 9.5 (rounded)1.Question :(TCO D) Data for December concerning DinnocenzoCorporation's two major business segments-Fibers andFeedstocks-appear below:Sales revenues, Fibers$870,000Sales revenues, Feedstocks$820,000Variable expenses, Fibers$426,000Variable expenses, Feedstocks$344,000Traceable fixed expenses, Fibers$148,000Traceable fixed expenses, FeedstocksS156,000Common fixed expenses totaled $314,000 and were allocatedas follows: $129,000 to the Fibers business segment and$185,000 to the Feedstocks business segment.Required:Prepare a segmented income statement in the contributionformat for the company. Omit percentages; show only dollaramounts.StudentAnswer:Fibers Feedstock Total Sales Revenue 870,000 820,000 1,690,000Less:variable ex 426,000 344,000 770,000 Contribution mar444,000 476,000 920,000 Fixed Cost: Less traceable 148,000156,000 304,000 Less comm fixed 129,000 185,000 314,000Total Fixed Cost 277,000 341,000 618,000 Net operat income167,000 135,000 302,000InstructorExplanation:

Preview Mode

This document has 7 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

Introduction Microfinance - the concept of microfi

Texas Life and Health Insurance Exam 150 Questions

Understanding Obligation and Deobligation in Resou

Budgeting for Life After High School

Ch 4 les 1

Understanding Credit Reports Analyzing John's Fina

Essentials of Risk Management

Stock Trak Investments Week 4

Analysis of ABC Company

Business and Financial Risks

Company

Explore

Study Tools