# DEVRY ACCT 505 Week 6 Quiz Segment Reporting - PowerPoint PPT Presentation

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## DEVRY ACCT 505 Week 6 Quiz Segment Reporting

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### DEVRY ACCT 505 Week 6 Quiz Segment Reporting and Relevant Costs for Decisions Check this A+ tutorial guideline at – PowerPoint PPT presentation

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Title: DEVRY ACCT 505 Week 6 Quiz Segment Reporting

1
DEVRY ACCT 505 Week 6 Quiz Segment Reporting and
Relevant Costs for Decisions
• Check this A tutorial guideline at
•
•
• http//www.assignmentcloud.com/acct-505-devry/acct
-505-week-6-quiz-segment-reporting-and-relevant-co
sts-for-decisions
• For more classes visit
•
• http//www.assignmentcloud.com
• Question
• (TCO D) Return on investment (ROI) is equal to
the margin multiplied by
• 2.
• Question
• (TCO D) For which of the following decisions are
opportunity costs relevant?
• The decision to make or buy a needed part
• The desision to keep or drop a product line

2
• (A)
• Yes
• Yes
• (B)
• Yes
• No
• (C)
• No
• Yes
• (D)
• No
• No
• 3.
• Question
• (TCO D) Last year, the House of Orange had sales
of 826,650, net operating income of 81,000, and
operating assets of 84,000 at the beginning of
the year and 90,000 at

3
• the end of the year. What was the company's
turnover, rounded to the nearest tenth?
• 1.
• Question
• (TCO D) Data for December concerning Dinnocenzo
and Feedstocks-appear below
• Sales revenues, Fibers
• 870,000
• Sales revenues, Feedstocks
• 820,000
• Variable expenses, Fibers
• 426,000
• Variable expenses, Feedstocks
• 344,000
• Traceable fixed expenses, Fibers
• 148,000
• Traceable fixed expenses, Feedstocks

4
• Traceable fixed expenses, Feedstocks
• S156,000
• Common fixed expenses totaled 314,000 and were
allocated as follows 129,000 to the Fibers
business segment and 185,000 to the Feedstocks
income statement in the contribution format for
the company. Omit percentages show only dollar
amounts.
• 2.
• Question
• (TCO D) Wryski Corporation had net operating
income of 150,000 and average operating assets
of 500,000. The company requires a return on
investment of 19.Required
• i. Calculate the company's current return on
investment and residual income.ii. The company
is investigating an investment of 400,000 in a
project that will the company invest in this
project?

5
• What is the residual income of the project?
Should the company invest in this project?
• 3.
• Question
• (TCO D) Tjelmeland Corporation is considering
dropping product S85U. Data from the company's
accounting system appear below.
• Sales
• 360,000
• Variable Expenses
• 158,000
• Fixed Manufacturing Expenses
• 119,000
• Fixed Selling and Administrative Expenses
• 94,000
• All fixed expenses of the company are fully
allocated to products in the company's accounting
system. Further investigation has revealed that
55,000 of the fixed

6
• manufacturing expenses and 71,000 of the fixed
selling and administrative expenses are avoidable
if product S85U is discontinued.Required
• i. According to the company's accounting system,
what is the net operating income earned by
product S85U? Show your work!ii. What would be
the effect on the company's overall net operating
income of dropping product S85U? Should the
product be dropped? Show your work!
• 4.
• Question
• (TCO D) Fouch Company makes 30,000 units per year
of a part it uses in the products it
manufactures. The unit product cost of this part
is computed as follows.
• Direct Materials
• 15.70
• Direct Labor
• 17.50

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• 4.50
• 14.60
• Unit Product Cost
• 52.30
• An outside supplier has offered to sell the
company all of these parts it needs for 51.90 a
unit. If the company accepts this offer, the
facilities now being used to make the part could
be used to make more units of a product that is
in high demand. The additional contribution
margin on this other product would be 219,000
per year.If the part were purchased from the
outside supplier, all of the direct labor cost of
the part would be avoided. However, 6.20 of the