Chapter 22 - Responsibility Accounting and Transfer Pricing Answers

Answer

1 Which of the following costs is traceable to an individual sales department in a department store such as Sears?

Answer d the corporate plane.

2 The Sports Arena location of Burger heaven reports monthly sales of 140,000, variable costs of 63,000, and traceable fixed costs of 54,000. The contribution margin ratio of this business unit is:

Answer c 55% (140000-63000)/140000

3 In deciding which responsibility centers can benefit most from short-term marketing efforts, such as advertising specific products, management should give greatest consideration to the relationship between a center's sales and:

Answer c Contribution...