REQUIRED:How much is the controllable margin of A1 for purposes of evaluating the segment manager's performance? Triple Z Corporation operates 2 stores: A1 and B2. The following information relates to stores A1 and B2:SalesVariable CostsP100,000 P130,00045,00091,000Direct Fixed Costs:Traceable and controllable by the segmentTraceable but not controllable by the segment17,50012,50023,00012,000The company has common costs of P10,000 which are to be divided/allocated equally between the twostores.

Controllable margin is the excess of revenue over the variable and traceable fixed cost.

Triple Z Corporation operates 2 stores: A1 and B2. The following information relates to stores A1 and B2: Sales Variable Costs Direct Fixed Costs: Traceable and controllable by the segment Traceable but not controllable by the segment P100,000 P130,000 45,000 91,000 17,500 12,500 23,000 12,000 The company has common costs of P10,000 which are to be divided/allocated equally between the two stores.

Triple Z Corporation operates 2 stores: A1 and B2. The following information relates to stores A1 and B2: Sales Variable Costs Direct Fixed Costs: Traceable and controllable by the segment Traceable but not controllable by the segment P100,000 P130,000 45,000 91,000 17,500 12,500 23,000 12,000 The company has common costs of P10,000 which are to be divided/allocated equally between the two stores.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

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Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

REQUIRED:

How much is the controllable margin of A1 for purposes of evaluating the segment manager's performance?

Triple Z Corporation operates 2 stores: A1 and B2. The following information relates to stores A1 and B2:
Sales
Variable Costs
P100,000 P130,000
45,000
91,000
Direct Fixed Costs:
Traceable and controllable by the segment
Traceable but not controllable by the segment
17,500
12,500
23,000
12,000
The company has common costs of P10,000 which are to be divided/allocated equally between the two
stores.

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