Responsibility Accounting and Performance Measures Paper 4

1

The segment margin of the Wire Division of Lerner Corporation should not include






2

When using a contribution margin format for internal reporting purposes, the major distinction between segment manager performance and segment performance is






3

Which of the following techniques would be best for evaluating the management performance of a department that is operated as a cost center?






4

Harris Co.ís income statement for profit center No. 12 for August includes
Contribution margin $84,000
Managerís salary 24,000
Depreciation on accommodations 9,600
Allocated corporate expenses 6,000
The profit centerís manager is most likely able to control which of the following?






5

Ordinarily, the most appropriate basis on which to evaluate the performance of a division manager is the divisionís






6

A firm prepared a segmented income statement that included the following data for its suburban marketing segment:
Fixed costs controllable by the suburban marketing segment manager $150,000
Fixed suburban marketing costs controllable by corporate management 250,000
Fixed manufacturing costs allocated to the suburban marketing segment 110,000
Variable manufacturing costs 200,000
Variable selling costs 100,000
Variable administrative costs 130,000
Net sales 950,000
The best measure of the economic performance of the suburban marketing segment is:






7

David Burke is manager of claims processing for Continental Health Care System. His performance is evaluated using various measures agreed upon in advance with Diane Lewis, general manager. Lewis asked Burke to recommend several measures to evaluate the performance of his unit next year. Which one of the following performance measures would likely have the least positive effect on Burkeís motivation and performance? .






8

Paul Cooper, shipping manager for DFG Distributors, is responsible for managing the staff and all related transportation equipment to fill orders for bakery products from local retailers and deliver the products to those retailers. Which one of the following groups of three performance measures most likely would result in the highest level of goal congruence?






9

P.C. Programs, Inc., produces software for individual users and small businesses. Rita Morgan manages the customer hotline department for the firm and is responsible for answering customer questions related to software products produced by all divisions of the firm. For purposes of promoting goal congruence, which one of the following would be the least appropriate measure of her performance?






10

Which one of the following should be used for evaluating the performance of the Repair and Maintenance Department that repairs production equipment in a firm devoted to making keyboards for computers?






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