Which of the following is not considered in the calculation of divisional ROI?
a. Divisional income.
b. Sales margin.
c. Sales revenue.
d. Capital turnover.
e. Earnings velocity. Question text
Which of the following is an appropriate base to distribute the cost of building depreciation to responsibility centers?
a. Budgeted net income of the responsibility centers.
b. Total budgeted direct operating costs of the responsibility centers.
c. Square feet occupied by the responsibility centers.
d. Budgeted sales dollars of the responsibility centers.
e. Number of employees in the responsibility centers.
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Kelly Corporation, with operations throughout the country, will soon allocate corporate overhead to the firm's various responsibility centers. Which of the following is definitely not a cost object in this situation?
a. Kelly Corporation.
b. The Midwest division.
c. Product no. 675.
d. The maintenance department.
e. The telemarketing center.
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Hitchcock Corporation is in the process of overhauling the performance evaluation system for its Los Angeles manufacturing division, which produces and sells parts that are popular in the aerospace industry. Which of the following is least likely to be chosen to evaluate the overall operations of the Los Angeles division?
a. Investment center.
b. Responsibility center.
c. Profit center.
d. Cost center.
e. The profit center and investment center are equally unlikely to be chosen.
Question text
