Question :
94. The costs of services charged to a profit center the : 1227018
94. The costs of services charged to a profit center on the basis of its use of those services are called: A. operating expensesB. noncontrollable chargesC. service department chargesD. activity charges
95. Division X reported income from operations of $975,000 and total service department charges of $575,000. Therefore: A. net income was $400,000B. the gross profit margin was $400,000C. income from operations before service department charges was $1,550,000D. consolidated net income was $400,000
96. To calculate income from operations, total service department charges are: A. added to income from operations before service department chargesB. subtracted from operating expensesC. subtracted from income from operations before service department chargesD. subtracted from gross profit margin
97. Income from operations for Division Z is $150,000, total service department charges are $400,000 and operating expenses are $2,266,000. What are the revenues for Division Z? A. $550,000B. $3,216,000C. $2,816,000D. $2,666,000
98. Income from operations for Division K is $120,000, and income from operations before service department charges is $975,000. Therefore: A. total operating expenses are $855,000B. total manufacturing expenses are $855,000C. direct materials, direct labor, and factory overhead total $855,000D. total service department charges are $855,000
99. The following data are taken from the management accounting reports of Dulcimer Co.:
Div. A
Div. B
Div. C
Income from operations
$1,800,000
$1,350,000
$1,350,000
Total service department charges
1,700,000
1,050,000
1,100,000
If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that: A. Division A’s manager is given the bonusB. Division B’s manager is given the bonusC. Division C’s manager is given the bonusD. The managers of Divisions B and C divide the bonus
100. What is the term used to describe expenses that are incurred for the benefit of a specific department? A. Indirect expensesB. Margin expensesC. Departmental expensesD. Direct expenses
101. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
RailsDivision
LocomotiveDivision
CorporateTotal
Cost of goods sold
$47,200
$30,720
Direct operating expenses
27,200
20,040
Net sales
98,000
68,000
Interest expense
$ 2,040
General overhead
18,160
Income tax
4,700
The gross profit for the Rails Division is: A. $50,800B. $23,600C. $13,240D. $33,280
102. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
RailsDivision
LocomotiveDivision
CorporateTotal
Cost of goods sold
$47,200
$30,720
Direct operating expenses
27,200
20,040
Net sales
98,000
68,000
Interest expense
$ 2,040
General overhead
18,160
Income tax
4,700
The income from operations for the Rails Division is: A. $5,800B. $23,600C. $13,240D. $33,280
103. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
RailsDivision
LocomotiveDivision
CorporateTotal
Cost of goods sold
$47,200
$30,720
Direct operating expenses
27,200
20,040
Net sales
98,000
68,000
Interest expense
$ 2,040
General overhead
18,160
Income tax
4,700
The gross profit for the Locomotive Division is: A. $47,800B. $20,600C. $17,240D. $37,280
