Show functional segments of the oil company diagrammatically.

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Required Information Bentler Industries provides high-technology navigation and communication equipment for the aerospace and shipbuilding industries. It is organized into two divisions, Aeronautics and Marine. The division presidents are given wide decision- making authority that covers operations, marketing, and asset acquisition and disposal. Bentler evaluates the division presidents on, among other things, ROI in their respective divisions. ROI is based on after-tax divisional income and beginning-of-year assets. Divisional income includes allocated corporate overhead. For the most recent year (year 3), data from the two divisions shows the following: Marine Division Aeronautics Division Cost of sales Sales Allocated corporate overhead ($000) Other general and administrative costs R&D costs Total assets (January 1,Year 3) $ 16,700 $ 17,500 22,900 15,300 1,170 2,950 20,100 7,500 63,800 60,000 28,300 56,550 The tax rate applied at Bentler is 20 percent. Looking at the ROI results for…

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Chapter 1, Problem 5P

To determine

Show functional segments of the oil company diagrammatically.

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Required Information Bentler Industries provides high-technology navigation and communication equipment for the aerospace and shipbuilding industries. It is organized into two divisions, Aeronautics and Marine. The division presidents are given wide decision- making authority that covers operations, marketing, and asset acquisition and disposal. Bentler evaluates the division presidents on, among other things, ROI in their respective divisions. ROI is based on after-tax divisional income and beginning-of-year assets. Divisional income includes allocated corporate overhead. For the most recent year (year 3), data from the two divisions shows the following: Marine Division Aeronautics Division Cost of sales Sales Allocated corporate overhead ($000) Other general and administrative costs R&D costs Total assets (January 1,Year 3) $ 16,700 $ 17,500 22,900 15,300 1,170 2,950 20,100 7,500 63,800 60,000 28,300 56,550 The tax rate applied at Bentler is 20 percent. Looking at the ROI results for…

Corcoran Heavy Industries Company (CHIC) is organized into four divisions, each of which operates in a different industry. The types of customer served and the method used to distribute products differ across all four of these industries. In addition, each division must comply with its own unique set of industry regulations related to issues such as safety and recyclability of materials.Operating profit before depreciation and amortization is the measure of profit regularly used by the chief operating decision maker for evaluating the performance of each of these divisions. In addition, information for each division on capital expenditures and depreciation and amortization is routinely provided by corporate headquarters to the chief operating decision maker. A summary of the information provided to the chief operating decision maker at the end of the current year is as follows:Required I. Prepare a report for CHIC's management evaluating whether the operating segments disclosures…

Which of the following statements is true for a company that has managers responsible for product and service lines of business and managers responsible for geographic areas (matrix form of organization)?a. Under U.S. GAAP, the company must base operating segments on geographic areas.b. Under IFRS, the company must base operating segments on product and service lines of business.c. Under U.S. GAAP, the company may choose to define operating segments on the basis of either products and services or geographic areas.d. Under IFRS, the company must refer to the core principle of IFRS 8 to determine operating segments.