Which of the following is not a criterion for aggregating two or more operating segments? Question 14Answer a. The segments should have similar production processes. b. d The segments should have similar amounts of revenue. c. The distribution of products should be similar. d. The segments should have similar products or services.

Which of the following is not a criterion for aggregating two or more operating segments? Question 14Answer a. The segments should have similar production processes. b. d The segments should have similar amounts of revenue. c. The distribution of products should be similar. d. The segments should have similar products or services.

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 10MCQ

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In determining if two operating segments may be combined into one, which of the following factors should be considered? a. similarities regarding profit margins b. whether the nature of the products and services is similar c. whether there is a similar amount of intracompany sales d. whether there is a similar number of employees
Similar operating segments may be combined if the segments have similar economic characteristics. Which one of the following is a similar economic characteristic? The segments’ management teams. The tax reporting law sections. The distribution method for products or services. The expected rates of return and risk for the segment’s productive assets.
The decision of whether to process products beyond the splitoff process should be based on which of the following? Select one: a. Production cost analysis b. Revenue analysis c. Incremental operating income attainable beyond the splitoff point d. Relevant cost analysis e. Gross margin analysis
Which of the following statements is TRUE? Joint product allocation results in more accurate assignment of revenues to products than does revenue tracing. Revenue allocation results in more accurate assignment of revenues to products than does revenue tracing. Revenue allocation results in more accurate assignment of revenues to products than does joint product allocation. Joint product allocation results in more accurate assignment of revenues to products than does revenue allocation. Revenue tracing results in more accurate assignment of revenues to products than does revenue allocation.
18. Which of the following cost allocation methods does not take into consideration that service centers provide services to each other? a. two-step method b. reciprocal method c. step method d. direct method
Can you explain the comparables method?( Must include how it works , key factors ,how we determine the more effective company)
In conducting a B/C analysis, (a) why is it usually necessary to take a specific viewpoint in categorizing cost, benefit, disbenefit estimates; and (b) what are two specific viewpoints that you can identify if the situation is a financial transaction between you and another person? Between your company and an international customer?
Answer the following questions in multiple-choice answers: 1. The book value of the equipment currently owned by a firm is an example of a(n): a. future cost. b. differential cost. c. comparative cost. d. opportunity cost. e. sunk cost. 2. An accounting information system should be designed to provide information that is useful. To be useful the information must be: a. qualitative rather than quantitative. b. unique and unavailable through other sources. c. historical in nature and not purport to predict the future. d. marginal between two alternatives. e. relevant, accurate, and timely. 3. Factors in a decision problem that cannot be expressed in numerical terms are: a. qualitative in nature. b. quantitative in nature. c. predictive in nature. d. sensitive in nature. e. uncertain in nature. 4. An opportunity cost may be described as: a. a foregone benefit. b. a historical cost. c. a specialized…
5 Which purpose of cost allocation is used to decide on the selling price for a customized product or service? Select one: a. to motivate managers and other employees b. to justify costs c. to measure income and assets for reporting to external parties d. to provide information for economic decisions
Gross margin and contribution margins are two important, yet separate measures companies can use to determine how profitable their operations are. Based on your reading, choose one of the following questions to discuss: What are the major differences between the gross and contribution margin? What are the purposes of each type of margin, and what information does each convey? When would each metric be used for decision-making? Are there specific industries or situations where one metric is more valuable than the other? Do you think one type of margin is more important or useful than the other? Why or why not?
Choose from: Cost leadership product differentiation
The value chain is the sequence of business functions in which A. usefulness is added to the products or services of an organization B. producing and delivering the product or service is of prime importance C. value is deducted from the products or services of an organization D. products and services are evaluated with respect to their value to the supply chain A contribution margin income statement is an income statement that groups costs into their variable and fixed components. True False