1. Speedo Company’s revenues are $300 on invested capital of $240. Expenses are
ID: 2358405 • Letter: 1
Question
1. Speedo Company’s revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its invested capital by 20%, return on investment will be _____.2. Jewel Company’s revenues are $300 and invested capital is $240. Expenses are currently 60% of sales. Jewel Company’s current return on investment is _____.
3. _____ is (are) the most basic component of a management control system.
4. _____ is the logical integration of management accounting tools to gather and report data and to evaluate performance.
5.factory overhead appears on the absorption-costing income statement as_____.
6. Absorption costing assigns _____ to the product.
7. In absorption costing, costs are separated into the major categories of_____.
8. Cost allocation base refers to the _____.
9. The preferred guidelines for allocating service department costs include _____.
10._____ are components of a master budget.
Explanation / Answer
1.Speedo company's revenues are $300 Invested capital $240 Expenses currenty 70% of sales ($300*70%) = $210 Revenues $300 Less;Expenses 210 _________ Net Income $90 __________ If company reduce its invested capital by 20% then ($240*20%=48) then invested capital $240-48=$192 Return on Investment = Net Income/Invested Capital = $90/$192 = 0.468 =46.87% 2.Jewel company's Revenues are $300 Invested capital $240 Expenses are currently 60% of sales ($300*60%)= $180 Revenues $300 Less: Expenses 180 _______ Net Income $120 _________ Return on Investment = Net Income/Invested Capital = $120/240 =50% 3.The most basic components of management control systems are organisations goals, strategies. 4.A management control system is the logical integration of management accounting tools to gather and report data and to evaluate performance. 5.Fixed Factory Overhead 6. Absorption costing assigns both variable and fixed manufacturing costs as product costs. 7. In absorption costing, costs are separated into the major categories of : The first step in absorption cost pricing is to compute the unit manufacturing cost. The second step in absorption cost pricing is to compute the markup percentage . 8.Cost allocatiobn base referes to the interaction between indirect costs and volume. 9.Using allocated for each service department. 10. Budget period and budget adjustments.Related Questions
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