Menu
support@businesspapershelp.com
+1(805) 568 7317

31 the service department will determine its service department charge rate and char 4294963

 

 

31. The service department will determine its service department charge rate and charge the company’s divisions or departments according to their use of that particular service department. 
 

 

32. The profit center income statement should include only controllable revenues and expenses. 
 

 

33. Controllable expenses are those that can be influenced by the decisions of the profit center management. 
 

 

34. In an investment center, the manager has the responsibility and the authority to make decisions that affect not only costs and revenues, but also the plant assets invested in the center. 
 

 

35. Three measures of investment center performance are income from operations, rate of return on investment, and residual income. 
 

 

36. The major shortcoming of income from operations as an investment center performance measure is that it ignores the amount of revenues earned by the center. 
 

 

37. If Division Q's income from operations was $30,000 on invested assets of $200,000, the rate of return on investment is 15%. 
 

 

38. The rate of return on investment may be computed by multiplying investment turnover by the profit margin. 
 

 

39. If the profit margin for a division is 8% and the investment turnover is 1.20, the rate of return on investment is 9.6%. 
 

 

40. If the profit margin for a division is 11% and the investment turnover is 1.5, the rate of return on investment is 7.3%. 
 

 

 

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now