Chương 4

Câu 2: In order to obtain the highest profit, the basis for a division making the
decision of expanding the production in the long term is:

A. Segment's contribution margin
B. Segment's contribution margin ratio
C. Segment margin ratio
D. Division's gross profit ratio
Câu 3: Which of the following results is used to evaluate the managerial performance
of divisional managers:
A. Contribution margin minus controllable segment fixed cost
B. Contribution margin
C. Contribution margin minus segment fixed cost
D. Controllable contribution margin minus segment fixed cost
Câu 4: The responsibility accounting system is used to:
A. Evaluating management responsibility of responsibility centers’ managers
B. Decentralizing the management in decentralized enterprises in accordance with
their organizational structure
C. evaluate the performance of responsibility centers
D. evaluate management responsibilities and performance results of each
department in achieving thr common goals of the whole enterprise
Câu 5: Which of the following is not appropriate in management responsibility

accounting:
A. Allocate common fixed costs to all responsibility centers
B. Prepare performance reports for each responsibility center
C. Goal/Plan is made for each responsibility center
D. Evaluate the performance for each responsibility center
Câu 6: Division A achieves a current ROI of 15%, which is higher than the minimum
desired rate of return of division A by 3%. Division A has a new investment
opportunity that requires investment assets of $30,000.00 which will generate revenue
of $20,000 and incur costs of $15,800. If Division A’s performance is evaluated based
on RI, the opinion of the division A’s manager about this investment opportunity is:
A. Reject this investment opportunity because the ROI of the investment
opportunity is lower than the current ROI
B. Accept this investment opportunity because the RI of division A is now $600
C. Accept this investment opportunity ROI of investment opportunity is greater
than minimum ROI
D. All are in correct
Câu 7: Division A produces a part for sale to an external customer that has the
following information:
Selling price/unit $50/u
Variable cost per unit $30/u
Fixed cost per unit $12/u
Production capacity 40,000 units/year

Division B of the company buys similar parts from outside for $48/u. Assume that
Division B needs 10,000 units/year and Division A can sell 35,000 units to outsiders.
If 10,000 units needed by Division B are supplied from Division A, this affects the
company’s profit:
A. $80,000 increased
B. All are correct
C. $20,000 decreased
D. $10,000 increased
Câu 8: Which of the following is NOT a disadvantage of ROI:

A. ROI doesn’t make sense for companies that don’t raise capital from borrowings
B. In some situations, ROI makes divisional managers rejecting good projects that
increase the overall ROI of the whole enterprise
C. ROI reflects the profitability of a firm in shorterm
D. It is difficult to clearly determine the investment and the profit associated with
that investment
Câu 9: In division A of company X, the year 20x9 has the operating profit higher than
residual profit(RI) by $150,000; Minimum desired rate of return is 10%. Total assets
of division A in 20x9 are:
A. $150,000
B. $1,000,000
C. $1,500,000
D. Unable to determine
Câu 10: A corporation has two companies. Company a is able to consume a maximum
production capacity of $80,000 units of product X with a selling price of $30/u, and
variable costs of $8/u. Instead of buying from outside with a unit price of $27,
company B proposed company A internally transfer 5,000 units of product X. At that
time, company A will save variable sales commission of $2/unit. As a result:
A. The internal transfer price should be in the range of (16,27)
B. Insufficient information to makr an internal transfer decision
C. It is profitable for the Corporation to make an internal transfer between two
companies A and B at the price of $2020/unit
D. It is unprofitable for the Corporation to make an internal transfer between two
companies A and B

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Câu 2: In order to obtain the highest profit, the basis for a division making the

decision of expanding the production in the long term is:

Câu 5: Which of the following is not appropriate in management responsibility

Selling price/unit $50/u

Variable cost per unit $30/u

Fixed cost per unit $12/u

Production capacity 40,000 units/year

Câu 8: Which of the following is NOT a disadvantage of ROI:

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