A responsibility report for a cost center takes each _____ from the budget and shows the real figures.
What does a favorable variance mean for a cost center manager?
Which of the following does NOT need to be included on a responsibility report for a cost center?
What is the likely outcome of a manager who consistently posts responsibility reports for a cost center that have favorable variances?
What is the main objective of a cost center?
Calculate the contribution margin given the following information: sales = $25,000; variable costs = $15,000; traceable fixed costs = $3,000; common fixed costs = $2,000.
Jennifer is the owner of a home décor and furnishings store and is trying to decide whether to close the kitchenware department; she should consider all of the following except
All of the following are examples of variable costs except
Calculate net income (or net loss) given the following information: sales = $10,000; variable costs = $4,000; traceable fixed costs = $3,000; common fixed costs = $1,500.
Which of the following costs would be considered a common fixed cost?
How do investment centers differ from profit centers?
Which of these is the most common method to evaluate an investment center?
What is the formula for return on investment?
Which of these residual incomes is best for a business?
What is residual income?
What can the worst-case scenario be for a firm that has subsidiaries that use cost-based transfer pricing?
What generally happens to the selling subsidiary in a cost-based transfer pricing plan?
What is the process by which subsidiaries transfer goods and assign prices?
In cost-based transfer pricing, if goods cost a manufacturer $50 to produce, how much will they be costed to another subsidiary for?
What price is assigned a good that is transferred via cost-based transfer pricing?
What price is charged for goods using market-based transfer pricing?
Why does adjusted market-based transfer pricing allow special treatment?
What is a weakness of market-based transfer pricing?
What is adjusted market-based transfer pricing?
What is a strength of market-based transfer pricing?
What kind of manager does negotiated transfer pricing benefit?
What kind of company is most likely to use transfer pricing?
What is negotiated transfer pricing?
When is negotiated transfer pricing most efficient?
What is transfer pricing?
Responsibility Centers & Reporting Segments Chapter Exam Instructions
Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come
to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will
Click it to see your results. Good luck!