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  3. Liberty ACCT 212 Chapter 9 Reading Assignment Answers Complete Solutions

Liberty ACCT 212 Chapter 9 Reading Assignment Answers Complete Solutions

Complete many different versions to get an A on your grade!

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A _____-based transfer price is used when there is no excess capacity.

Costs which are incurred to produce two or more products at the same time are called _____ costs:

Desktop Computer Company would like to calculate their cash conversion cycle. What factors are included in computing this metric?

A _____-based transfer price is used when there is excess capacity.

The cash conversion cycle formula is

Division A reports the following data: Sales = $180,000; Net income = $18,000; Average assets = $72,000. Division B reports the following data: Sales = $60,000; Net income = $9,600; Average assets = $48,000. Which division is operating more efficiently?

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Determine if the following costs would be considered direct or indirect for a division which manufactures bicycles.

Challenges that involve allocating expenses include:

Responsibility accounting provides relevant information to the manager who does all of the following except:

Transfer prices:

In responsibility accounting, unit managers are evaluated on:

A cost that is not within a manager’s control or influence is called a(n) cost.

A department that is evaluated on their success in generating income is a(n):

A manufacturing division has $1,800,000 invested in assets and earned income of $720,000. The company’s hurdle (target) rate is 8%. The division’s residual income is $ .

Departmental income statements include:

Julie works in the production department. Julie’s wages are an example of ______ expenses for the production department.

True or false: Controllable costs are the same as direct costs.

Advantage of providing lower-level managers with decisions-making authority includes:

Company A has a return on investment of 20% and Company B has a return on investment of 24%. Which of the following statements is true?

Costs that are incurred for the joint benefits of more than one department and cannot be readily traced to only one department are called ______________expenses.

A cost that a manager has the power to determine or at least significantly affect is called a(n) cost.

Departmental information is prepared for the following reasons

A department that incurs costs and generates revenues is considered a(n) ______________

A division of a manufacturing company has a return on investment of 24%. The division has an opportunity to accept a project that is expected to earn a return on investment of 22%. The company’s hurdle rate is 20% which of the following statements is true?

A division reports the following figures: Profit margin =20% Investment turnover = 0.5. The division return on investment is

If a company has $2,000,000 invested in buildings, equipment, and other assets and desires to earn a return on investment of 30%, the company will need to earn a net income of $ .

Julie works in the production department. Julie’s wages are an example of ______________ expense for the production department.

Personnel expenses would most likely be allocated to operating departments using which allocation base?

Plans prepared prior to the accounting period that identify costs and expenses under each managers control are called responsibility accounting

A responsibility accounting system recognizes that control over costs and expenses belong to:

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