Module 6 Exercise for managerial accounting PDF

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It includes different exercises for the course (managerial accounting) to help students practice what they studied in the classroom....

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EXERCISE MODULE 6 RESPONSIBILITY ACCOUNTING EX 1 Identify each responsibility center for the given scenario 1. The bakery department of a Public supermarket reports income for the current year. 2. Pace foods is a subsidiary of Campbell soup. 3. The personnel department of State Farm Company prepares its budget and subsequent performance report on the basis of its expected expenses for the year. 4. The shopping section of Burpee.Com reports both revenues and expenses. 5. Burpee.com’s investor relations. Web site provides operating and financial information to investors and other interested parties. 6. The manager of a BP service station is evaluated based on the station’s revenues and expenses. 7. A charter airline records revenues and expenses for each airplane each month. Each airplane’s performance report shows its ratio of operating income to average book value. 8. The manager of the southwest sales territory is evaluated based on a comparison of current period sales against budgeted sales.

Ex 2 Identify each responsibility center for the given questions below ____ The manager of the Midwest region is evaluated based on a comparison of current period sales against budgeted sales. ____ Taco Bell is a subsidiary of PepsiCo. ____ The books section of eBay.com reports both revenues and expenses. ____ The personnel department of XYZ Company prepares its budget and performance report on the basis of its expected expenses for the year. ____ The fresh foods section of the local grocery store reports operating income for the current year. ____ Cingular Wireless provides customer support via its website. ____ The manager of the local fast food restaurant is evaluated based on the store’s revenues and expenses. ____ Free Ride Limos, a local charter limousine service, tracks the revenue and expenses for each vehicle in its fleet. The vehicles’ performance reports show the ratio of operating income to average book value for each limo.

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Ex 3 Identify each responsibility center as a cost center(C), a revenue center (R), a profit center (P), or an investment center (I). a. The menswear department at Bloomingdale’s, which is responsible for buying and selling merchandise b. The regional factory manager in charge if introducing new product development c. The sales manager in charge of Nike’s northwest sales territory overseas. d. The manager of human resource department of IKEA Company e. A department’s manager of McDonald branch.

BALANCE SCORECARD PERSPECTIVE Ex 1 On the line in front of each statement, enter the letter of the balanced scorecard perspective that it addresses. An item may be used more than once or not at all. A) B) C) D)

financial perspective customer perspective internal business perspective learning and growth perspective

____ Employee turnover rate ____ Customer retention ____ Machine downtime ____ Wait time per order prior to start of production ____ Gross margin growth Ex 2 On the line in front of each statement, enter the letter of the balanced scorecard perspective that it addresses. An item may be used more than once or not at all. F) financial perspective C) customer perspective I) internal business perspective L)Learning and growth perspective ____ Return on investment ____ Customer satisfaction ratings ____ Number of warranty claims ____ Employee satisfaction ____ Revenue growth 2

Ex 3 On the line in front of each statement, enter the letter of the balanced scorecard perspective that it addresses. An item may be used more than once or not at all. F) financial perspective C) customer perspective I) internal business perspective L) learning and growth perspective ____ Number of employee suggestions implemented ____ Number of new products developed ____ Percentage of market share ____ Number of repeat customers ____ Percentage of sales force with access to real-time inventory levels Ex 4 On the line in front of each statement, enter the letter of the balanced scorecard perspective that it addresses. An item may be used more than once or not at all. F) financial perspective C) customer perspective I) internal business perspective L) Learning and growth perspective ____ Economy Value Added (EVA) ____ Average machine set-up time ____ Employee turnover rate ____ Finished products per day per employee ____ Number of new customers

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