ACCT 241 Week 11 Quiz | Assignment Help | American University
- american-university / ACCT 241
- 09 Aug 2019
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ACCT 241 Week 11 Quiz | Assignment Help | American University
1
The
Millard Division's operating data for the past two years are provided below:
|
|
Year
1 |
Year
2 |
||||
|
Return
on investment |
|
15 |
% |
|
20 |
% |
|
Net
operating income |
|
? |
|
$ |
400,000 |
|
|
Turnover |
|
? |
|
|
5 |
|
|
Margin |
|
? |
|
|
? |
|
|
Sales |
$ |
3,220,000 |
|
|
? |
|
|
|
||||||
Millard
Division's margin in Year 2 was 140% of the margin in Year 1.
The
net operating income for Year 1 was:
Multiple Choice
$160,000
$96,600
$128,800
$257,600
2.
All other things equal, which of the following would
increase a division's residual income?
Multiple
Choice
Increase
in expenses.
Decrease
in average operating assets.
Increase
in minimum required return.
Decrease
in net operating income.
3.
Some
investment opportunities that should be accepted from the viewpoint of the
entire company may be rejected by a manager who is evaluated on the basis of:
Multiple
Choice
return on investment.
residual
income.
contribution
margin.
segment
margin.
4.
BR
Company has a contribution margin of 40%. Sales are $312,500, net operating
income is $25,000, and average operating assets are $200,000. What is the
company's return on investment (ROI)?
Multiple
Choice
12.5%
62.5%
8.0%
64.0%
5.
The
following information relates to last year's operations at the Legumes Division
of Gervani Corporation:
|
|
|||
|
Minimum
required rate of return |
|
12 |
% |
|
Return
on investment (ROI) |
|
12.8 |
% |
|
Sales |
$ |
640,000 |
|
|
Turnover
(on operating assets) |
|
4 |
times |
|
|
|||
What
was the Legume Division's net operating income last year?
Multiple Choice
$81,920
$20,480
$76,800
$5,120
6.
Which
of the following segment performance measures will decrease if there is an
increase in the interest expense for that segment?
|
|
Return
on Investment |
Residual
Income |
|
A) |
Yes |
Yes |
|
B) |
No |
Yes |
|
C) |
Yes |
No |
|
D) |
No |
No |
|
|
||
Multiple Choice
Choice
A
Choice
B
Choice
C
Choice
D
7.
Which of the following performance measures will
increase if inventory decreases and all else remains the same?
|
Return
on Investment |
Residual
Income |
|
|
A) |
Yes |
Yes |
|
B) |
No |
Yes |
|
C) |
Yes |
No |
|
D) |
No |
No |
|
|
||
Multiple Choice
Choice
A
Choice
B
Choice
C
Choice
D
8.
The
following data are for the Akron Division of Consolidated Rubber, Inc.:
|
|
|
|
|
Sales |
$ |
780,000 |
|
Net
operating income |
$ |
51,000 |
|
Average
operating assets |
$ |
280,000 |
|
Stockholders'
equity |
$ |
78,000 |
|
Residual
income |
$ |
18,000 |
|
|
||
For
the past year, the minimum required rate of return was:
Multiple Choice
36.00%
11.79%
18.74%
6.54%
9
Which
of the following will increase a company's manufacturing cycle efficiency
(MCE)?
|
|
Decrease
in Inspection Time |
Decrease
in Queue Time |
|
A) |
Yes |
Yes |
|
B) |
Yes |
No |
|
C) |
No |
Yes |
|
D) |
No |
No |
|
|
||
Multiple
Choice
Choice
A
Choice
B
Choice
C
Choice
D
10
.
The
following data has been provided for a company’s most recent year of
operations:
|
|
|||
|
Return
on investment |
|
24 |
% |
|
Average
operating assets |
$ |
70,000 |
|
|
Minimum
required rate of return |
|
19 |
% |
|
|
|||
The
residual income for the year was closest to:
Multiple
Choice
$3,500
$15,800
$11,200
$23,100
USA 
India
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