introduction chapters
chapter 23
Reporting Techniques in
Support of Managerial Decision Making
goals discussion goals achievement fill in the blanks multiple choice problems check list and key terms
Select the appropriate response.
Which of the following costing methods is the more traditional method?
absorption costing or variable costing
Which cost element represents the key difference between absorption costing and variable costing?
fixed manufacturing overhead or variable manufacturing overhead
Gross profit would appear in a variable costing income statement.
With both variable costing and absorption costing, all selling and administrative costs, whether they be fixed or variable, are expensed in the period incurred.
If the level of inventory increases during a period, then which method will produce the higher income?
absorption costing or variable costing
The determination of business segments is driven by:
SIC codes or the evaluative units judged by operating decision makers
Which of the following costs would not be considered in assessing segment margin in a contribution income statement?
uncontrollable fixed costs or nontraceable costs
In a contribution income statement, the contribution margin is the result of subtracting what amount from net sales?
variable cost of goods sold or variable cost of goods sold and variable selling and administrative expenses
The controllable contribution margin is computed by subtracting fixed costs (that are both controllable by a segment and directly traceable to the segment) from the contribution margin.
The controllable contribution margin minus uncontrollable fixed costs yields the:
The controllable contribution margin would be useful in judging management performance.
Segment data cannot be presented for external reporting purposes.
The calculation of residual income reduces operating income by:
operating assets times the cost of capital or research and development expenditures
The allocation of service department costs to productive departments, without involving any allocations of costs between service departments, is called:
the direct method or the step method
A business dashboard is a modern information system that delivers real time information to managers in a format that can best be described as a:
customizable layout or standardized layout