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  • Solution Responsibility Accounting Pratice Problem

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    Beomi
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    This document contains an answer key for an MS2 quiz with 31 multiple choice and computational questions. The key provides the answers to the questions, showing calculations and summarizing financial metrics for different companies and divisions.

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    solution responsibility Accounting pratice problem

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    This document contains an answer key for an MS2 quiz with 31 multiple choice and computational questions. The key provides the answers to the questions, showing calculations and summarizing financial metrics for different companies and divisions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    22 views3 pages

    Solution Responsibility Accounting Pratice Problem

    Uploaded by

    Beomi
    This document contains an answer key for an MS2 quiz with 31 multiple choice and computational questions. The key provides the answers to the questions, showing calculations and summarizing financial metrics for different companies and divisions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 3

    ANSWER KEY: MS2-QUIZ NO.

    I. TRUE OR FALSE
    1 Cost Centers
    2 Indirect Expenses
    3T
    4 involvement
    5 Financial perspective
    6 does not necessarily indicate
    7 learning and growth
    8T
    9T

    II. COMPUTATIONAL

    10 Sales ₱ 2,400,000.00
    less: COGS 1,870,000.00
    S&A Expenses 180,000.00
    Segmented Income ₱ 350,000.00

    Weight Cost Weighted Cost

    11 Debt 0.2 0.056 0.0112


    Equity 0.8 0.11 0.088
    0.0992

    12 Sales ₱ 2,700,000.00
    less: COGS 1,770,000.00
    S&A Expenses 640,000.00
    Segmented Income ₱ 290,000.00
    less: Tax 87,000.00
    Net Income 203,000.00
    Min Req. Return 208,320.00
    EVA ₱ (5,320.00)

    13 Min TP 4.50
    Max TP 4.00
    Difference 0.50
    X no. of units transferred internally 100,000.00
    Increase in Profit ₱ 50,000.00

    WHOLE CO. COFFEE


    14 Min TP 2.00 4.00
    Max TP 4.00 2.00
    Difference (2.00) 2.00
    X no. of units transferred internally 100,000.00 (100,000.00)
    Decrease in Profit ₱ (200,000.00) (200,000.00)

    15 Min TP 2.00
    Max TP 4.00

    16 WHOLE COFFEE DONUT


    PRICE 4.00 3.00 4.00
    VC 2.00 2.00 3.00
    Diff 2.00 1.00 1.00
    Units 100,000.00 100,000.00 100,000.00
    Inc(Dec in Profits 200,000.00 100,000.00 100,000.00

    17 Sales 3,825,000.00
    less:VC 1,700,000.00
    CM 2,125,000.00
    less:FC 1,500,000.00
    Profit 625,000.00
    ROI 0.31 -

    18 Sales 4,125,000.00
    less:VC 1,900,000.00
    CM 2,225,000.00
    less:FC 1,500,000.00
    Profit 725,000.00
    ROI 0.36

    19 Market Price 120.00

    20 Minimum 108
    Maximum 120
    Difference 12
    Split 6
    Minimum 108
    Actual TP 114

    21 Current PP 90
    VC 44
    Difference 46
    Split 23
    Minimum 44
    Expected TP 67

    22 Increase in Company's Profit 92,000.00

    Increase in Appliance Div 46,000.00

    23 Maximum 200.00

    24 Min 195.00

    25 Min 9

    26 Max 13

    27 MCE 0.375

    28 NVA 0.625

    29 DT 25.7

    30 MCE 0.647058824

    31 A B COMPANY
    External Sales 100,000.00 120,000.00 220,000.00
    Internal Transfers 20,000.00 20,000.00
    Fixed&VC Costs (70,000.00) (40,000.00) (110,000.00)
    Transfer Costs (20,000.00) (20,000.00)
    Profit B4 Tax 50,000.00 60,000.00 110,000.00
    Profit After Tax 25,000.00 48,000.00 73,000.00
    Before 64,000.00
    32 Increase 9,000.00

    33 25%
    34 Current ROI 23%

    1 2 3
    Income 50000 54000 96000
    Investment 250000 300000 400000
    ROI 0.2 0.18 0.24

    35 Income 50000 54000 96000


    Min Req Return 55000 66000 88000
    Residual Income -5000 -12000 8000

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