In each dropdown next to the following terms, select the identifying letter of its best description....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In each dropdown next to the following terms, select the identifying letter of its best description. A. Incurs costs without directly yielding revenues. B. Does not directly manufacture products but contributes to profitability of the entire company. C. Costs incurred for the joint benefit of more than one department. D. Costs that a manager has the ability to affect. E. Engages directly in manufacturing or making sales directly to customers. F. Costs that can be readily traced to a department. 1. Service department 2. Direct expenses 3. Indirect expenses 4. Operating department 5. Controllable costs 6. Cost center A B C D E F Required Information [The following information applies to the questions displayed below] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales $42,250,000 Income $3,211,000 19,350,000 2,322,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 12% of average invested assets. Compute residual income for each dep tment. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? Choose Numerator Average Invested Assets $16,900,000 12,900,000 Return on investment / Choose Denominator Electronics Sporting Goods Which department is most efficient at using assets to generate returns for the company? Required 1 Return on Investment Return on Investment Required 2 > Required information [The following information applies to the questions displayed below.) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center. Electronics Sporting goods Sales $42,250,000 19,350,000 Income $3,211,000. 2,322,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual Income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? Net income Target net income Residual income Complete this question by entering your answers in the tabs below. Average Invested Assets) $16,900,000 12,900,000 Required 1 Required 2 Required 3 Assume a target income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Investment Center Electronics Sporting Goods Which department is most efficient at using assets to generate returns for the company? < Required 1 Required 3 > Required information [The following information applies to the questions displayed below] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Income Sales $42,250,000 $3,211,000 19,350,000 2,322,000 Average 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Invested Assets $16,900,000 12,900,000 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Should the new investment opportunity be accepted? Required 1 Required 2 Requires 3 Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? < Required 2 Required S In each dropdown next to the following terms, select the identifying letter of its best description. A. Incurs costs without directly yielding revenues. B. Does not directly manufacture products but contributes to profitability of the entire company. C. Costs incurred for the joint benefit of more than one department. D. Costs that a manager has the ability to affect. E. Engages directly in manufacturing or making sales directly to customers. F. Costs that can be readily traced to a department. 1. Service department 2. Direct expenses 3. Indirect expenses 4. Operating department 5. Controllable costs 6. Cost center A B C D E F Required Information [The following information applies to the questions displayed below] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales $42,250,000 Income $3,211,000 19,350,000 2,322,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 12% of average invested assets. Compute residual income for each dep tment. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? Choose Numerator Average Invested Assets $16,900,000 12,900,000 Return on investment / Choose Denominator Electronics Sporting Goods Which department is most efficient at using assets to generate returns for the company? Required 1 Return on Investment Return on Investment Required 2 > Required information [The following information applies to the questions displayed below.) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center. Electronics Sporting goods Sales $42,250,000 19,350,000 Income $3,211,000. 2,322,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual Income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? Net income Target net income Residual income Complete this question by entering your answers in the tabs below. Average Invested Assets) $16,900,000 12,900,000 Required 1 Required 2 Required 3 Assume a target income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Investment Center Electronics Sporting Goods Which department is most efficient at using assets to generate returns for the company? < Required 1 Required 3 > Required information [The following information applies to the questions displayed below] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Income Sales $42,250,000 $3,211,000 19,350,000 2,322,000 Average 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Invested Assets $16,900,000 12,900,000 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Should the new investment opportunity be accepted? Required 1 Required 2 Requires 3 Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? < Required 2 Required S
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The aggrieved party, in case of misrepresentation or fraud by the other party can_ 1. Avoid but cannot rescind the contract 2. Accept contract but insist that he shall be placed in the position in...
-
Required information [The following information applies to the questions displayed below.] Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their...
-
Required information [The following information applies to the questions displayed below.] Data for Klauer Corporation are shown below: Percent of Sales 100% Per Unit $ 100 Selling price Variable...
-
Stenback Exercise Equipment, Inc. reported the following financial statements for 2016: Requirements 1. Compute the amount of Stenback Exercises acquisition of plant assets. Assume the acquisition...
-
Scott Company purchased equipment for $250,000 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $50,000. Estimated production is 20,000...
-
Prepare common-sized financial statements for Regina for the period 1986 to 1988. Also, compute key liquidity, solvency, activity, and profitability ratios for the years 1987 and 1988. Given these...
-
What are common-size financial statements and how are they used?
-
Clyde Billy is conducting the audit of Hoops Inc. and is examining Hoopss inventory balances. Billy plans to select a sample of inventory items for examination and will verify quantities and perform...
-
Given the following market situation: The risk-free rate is 5% and the market risk premium is 8%.The firm's corporate tax rate is 35%.The firm has a beta of 1.10. Common Stock is listed on the...
-
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry. Burdell wants to locate a low-cost supplier for the tires...
-
identify and critically analyze "pros and cons of using NPV as decision rule".
-
You have the opportunity to buy a new car or a used car, define opportunity cost and state what opportunities cost occurred when you purchased one car over the other? Define Opportunity Cost: Answer:...
-
Reflect upon a leader or manager who positively or negatively impacted your practice. Include the following sections: Application of Course Knowledge: Answer all questions / criteria with...
-
Use the supply and demand diagram to evaluate and explain the following situations: a) Industries that sell inferior goods do well in an economic downturn. b) College attendance has at increased at...
-
Potable water (total dissolved solids <250 ppm) can be obtained from seawater in a single stage design using high performance membranes. Calculate the required membrane area, number of modules and...
-
Three charged particles are located at the corners of an equilateral triangle as shown in the figure below (let q = 2.20 C, and L = 0.850 m). Calculate the total electric force on the 7.00-C charge....
-
Suppose a random sample of n = 16 communities in western Kansas gave the following information for people under 25 years of age. X: Rate of hay fever per 1,000 population for people under 25 99 89...
-
From the choice of simple moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate? Why? please write it in word...
-
Assume that Apples iMac division is charged with preparing a master budget. Identify the participantsfor example, the sales manager for the sales budgetand describe the information each person...
-
Refer to QS 5-6. Determine the (1) Contribution margin ratio and (2) Break-even point in dollars.
-
a. Calculate the debt ratio and the return on assets using the year-end information for each of the following six separate companies ($ thousands). b. Of the six companies, which business relies most...
-
According to the 2019 J.D. Power and Associates Reports, three Hyundai Motor Group models have the fewest quality problems in the industry, with just 63,70 , and 71 problems per 100 vehicles for...
-
The following production information about quality costs has been gathered for June: Using these data, calculate the following: a. Total cost to rework b. Profit lost from not reworking all defective...
-
Fuel economy leaders for the category of small sport utility vehicles include the Hyundai all-electric vehicle, Kona Electric, at 120 miles per gallon of gasoline equivalent (MPGe) and the Ford...
Study smarter with the SolutionInn App