Which of the following is not a criterion for aggregating two or more operating segments? Question 14Answer a. The segments should have similar production processes. b. d The segments should have similar amounts of revenue. c. The distribution of products should be similar. d. The segments should have similar products or services.

The income statement of a service-sector firm reports: both period and inventoriable costs a O inventoriable costs only .b O period costs only .R period and inventoriable costs but at different times; the reporting varies dO

Answer the following questions in multiple-choice answers:   1. The book value of the equipment currently owned by a firm is an example of a(n): a. future cost. b. differential cost. c. comparative cost. d. opportunity cost. e. sunk cost.   2. An accounting information system should be designed to provide information that is useful. To be useful the information must be: a. qualitative rather than quantitative. b. unique and unavailable through other sources. c. historical in nature and not purport to predict the future. d. marginal between two alternatives. e. relevant, accurate, and timely.   3. Factors in a decision problem that cannot be expressed in numerical terms are: a. qualitative in nature. b. quantitative in nature. c. predictive in nature. d. sensitive in nature. e. uncertain in nature.   4. An opportunity cost may be described as: a. a foregone benefit. b. a historical cost. c. a specialized…

5 Which purpose of cost allocation is used to decide on the selling price for a customized product or service?       Select one: a. to motivate managers and other employees b. to justify costs c. to measure income and assets for reporting to external parties d. to provide information for economic decisions

9

Gross margin and contribution margins are two important, yet separate measures companies can use to determine how profitable their operations are. Based on your reading, choose one of the following questions to discuss: What are the major differences between the gross and contribution margin? What are the purposes of each type of margin, and what information does each convey? When would each metric be used for decision-making? Are there specific industries or situations where one metric is more valuable than the other? Do you think one type of margin is more important or useful than the other? Why or why not?

Indirect costs occur when? A. Resources are shared by more than one product or service. B. Costs cannot be directly traced to products or services. C. Multiple departments share a piece of equipment or facility. D. All of the above are correct.

The value chain is the sequence of business functions in which A. usefulness is added to the products or services of an organization B. producing and delivering the product or service is of prime importance C. value is deducted from the products or services of an organization D. products and services are evaluated with respect to their value to the supply chain A contribution margin income statement is an income statement that groups costs into their variable and fixed components. True False

Which of the following statements best describes a profit center?a. The responsibility for combining the raw materials, direct labor,and other factors of production into a final productb. The authority to make decisions affecting the majordeterminants of profit, including the power to choose its marketsand sources of supplyc. The authority to make decisions affecting the majordeterminants of profit, including the power to choose its markets,sources of supply, and significant control over the amount ofinvested capitald. The authority to make decisions over the most significant costsof operations, including the power to choose the sources of supplye. The authority to provide specialized support to other unitswithin the organization

Which of the following methods allocates joint costs based on the potential market value at the point where the products will be separated to be processed further? a.net realizable value method b.weighted average method c.market value at split-off method d.physical units method