43.
Responsibility accounting systems should begin with:
A.
A budget by center.
B.
A performance report by center.
C.
A measure of corporate performance.
D.
A company-wide income statement.
44.
In preparing a responsibility income statement that shows contribution margin and responsibility margin, generally two concepts are involved in allocating costs to the various centers. These concepts are:
A.
Whether the costs are variable or fixed and whether they are material in dollar amount.
B.
Whether the costs are traceable to the responsibility center and whether the responsibility center is organized as a profit center or an investment center.
C.
Whether the costs are variable or fixed and whether they are directly traceable to the responsibility center.
D.
Whether the costs are traceable to the responsibility center and whether they are material in dollar amount.
45.
A responsibility income statement generally does
not
show the:
A.
Contribution margin of each responsibility center.
B.
Traceable fixed costs allocated to each responsibility center.
C.
Segment margin of each responsibility center.
D.
Net income of each responsibility center.
46.
Refer to the above information, the contribution margin of the local branch is:
A.
$5,500,000.
B.
$2,400,000.
C.
$2,246,000.
D.
$3,254,000.
47.
Refer to the above information. The contribution margin ratio of the local branch is closest to:
A.
59%.
B.
41%.
C.
49%.
D.
52%.
48.
Refer to the above information. The responsibility margin of the local branch is:
A.
$5,500,000.
B.
$1,926,000.
C.
$2,246,000.
D.
$2,400,000.
49.
Refer to the information above. Closing Profit Center 3 should cause Dalton's monthly operating income to:
A.
Increase by $5,000.
B.
Decrease by $15,000.
C.
Decrease by $7,000.
D.
Decrease by $20,000.
50.
Refer to the information above. After the closing of Profit Center 3, the monthly income from operations for Profit Center 1, as measured by Dalton Co. should be approximately:
A.
$25,000.
B.
$17,500.
C.
$10,000.
D.
$15,000.
51.
The contribution margin is calculated by:
A.
Subtracting fixed costs from sales.
B.
Subtracting variable costs from sales.
C.
Subtracting fixed and variable costs from sales.
D.
Subtracting common costs from sales.
52.
The responsibility margin is calculated by:
A.
Subtracting fixed costs traceable to a center from its contribution margin.
B.
Subtracting common fixed costs from the contribution margin.
C.
Subtracting variable costs from sales.
D.
Subtracting common fixed costs from variable costs.