Acct 505

Question :

(TCO D) Return on investment (ROI) is equal to the margin multiplied by

Student Answer:

sales. turnover. average operating assets. residual income.

Instructor Explanation:

Chapter 12

Points Received: Comments: 2. Question :

5 of 5

(TCO D) For which of the following decisions are opportunity costs relevant?

The decision to make or The desision to keep or buy a needed part drop a product line (A) (B) (C) (D)

Student Answer:

Yes Yes No No

Yes No Yes No

Choice A Choice B Choice C Choice D

Instructor Explanation:

Chapter 13

Points Received:

5 of 5

Comments: 3. Question :

(TCO D) Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the beginning of the year and $90,000 at the end of the year. What was the company's turnover, rounded to the nearest tenth?

Student Answer:

9.5 10.2 9.8 9.2

Instructor Explanation: 1. Question :

Turnover = Sales / Average operating assets Turnover = $826,650 / [($84,000 + $90,000) / 2] = 9.5 (rounded) (TCO D) Data for December concerning Dinnocenzo Corporation's two major business segments-Fibers and Feedstocks-appear below:

Sales revenues, Fibers Sales revenues, Feedstocks Variable expenses, Fibers Variable expenses, Feedstocks Traceable fixed expenses, Fibers

$870,000 $820,000 $426,000 $344,000 $148,000

Traceable fixed expenses, Feedstocks S156,000 Common fixed expenses totaled $314,000 and were allocated as follows: $129,000 to the Fibers business segment and $185,000 to the Feedstocks business segment. Required: Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

Student Answer: Fibers Feedstock Total Sales Revenue 870,000 820,000 1,690,000 Less:variable ex 426,000 344,000 770,000 Contribution mar 444,000 476,000 920,000 Fixed Cost: Less traceable 148,000 156,000 304,000 Less comm fixed 129,000 185,000 314,000 Total...