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# Acct 505 Week 6 Quiz Segment Reporting and Relevant Costs for Decisions

• Date Submitted: 12/28/2015 12:42 AM
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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
(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 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 Corporation's two major business segments-Fibers 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
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 business segment.

Required:

Prepare a segmented 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 generate annual net operating income of \$78,000. What is the ROI of the project? What is the residual income of the project? Should the company invest in this project?
3.
Question :
(TCO D) Tjelmeland...