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33 disneyland is one of several theme parks owned by the walt disney company disneyl 4298305

 

 

33. Disneyland is one of several theme parks owned by The Walt Disney Company. Disneyland should be evaluated as: 
A. An investment center.
B. A cost center.
C. An entertainment center.
D. A profit center (other than an investment center).

 

 

34. Disneyland charges visitors for admission to the park but not for individual rides or attractions. “Splash Mountain” is one of the rides in Disneyland. The Walt Disney Company should evaluate “Splash Mountain” as: 
A. A revenue center.
B. A cost center.
C. An investment center.
D. A profit center (other than an investment center).

 

 

35. San Francisco's famous St. Francis Hotel is owned by Westin Hotel and Resort Group. Westin should evaluate the St. Francis as: 
A. A cost center.
B. A historical landmark.
C. An investment center.
D. A profit center (other than an investment center).

 

 

36. One of the unique services provided by San Francisco's St. Francis Hotel is cleaning and polishing coins (pocket change) for the guests. From the standpoint of hotel management, this “money laundry” should be viewed as: 
A. A contribution center.
B. A cost center.
C. An investment center.
D. A profit center (other than an investment center).

 

 

37. Cost centers are evaluated primarily on the basis of their ability to control costs and: 
A. Their return on assets.
B. Residual income.
C. The quantity and quality of the services they provide.
D. Their contribution margin ratio.

 

 

38. Carrier Corporation produces heating and air conditioning equipment at a number of plants throughout the United States including one in Syracuse, New York. Carrier should evaluate its Syracuse plant as: 
A. A cost center.
B. An investment center.
C. A profit center (other than an investment center).
D. A committed center.

 

 

39. Carrier Corporation's Syracuse plant is organized into Air Conditioning and Heating Products divisions. The management of the Syracuse plant should evaluate the Heating Products division as: 
A. A cost center.
B. An investment center.
C. A profit center (other than an investment center).
D. A responsibility center.

 

 

40. John Thomas is the manager of materials movement for the Syracuse plant of Carrier Corporation. Thomas should be evaluated as manager of: 
A. A cost center.
B. An investment center.
C. A profit center (other than an investment center).
D. Human resources under his supervision.

 

 

41. Parker's newly hired director of accounting services feels that the property taxes on the Cairo factory should be allocated to the fabricating, assembly, and finishing departments based upon the square footage they occupy. Of the following, which is not a valid reason to reject this recommendation? 
A. The property taxes would not change even if one or more of the departments were eliminated.
B. Such an allocation violates GAAP.
C. The property taxes are not under the control of department managers.
D. The allocation may imply changes in efficiency that are unrelated to center performance.

 

 

42. The contribution margin is calculated by: 
A. Subtracting fixed costs from sales.
B. Subtracting variable costs from sales.
C. Subtracting fixed and variable costs from sales.
D. Subtracting common costs from sales.

 

 

 

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