The following information is available for the Peter Company: Sales $150,000 Invested Capital 156,250 ROI 10% The return on sales is _____.

In absorption costing, costs are separated into the major categories of_____.

47) _____ is (are) used for external reporting.
A. Absorption costing
B. Variable costing
C. Absorption costing and variable costing
D. Direct costing
48) In absorption costing, costs are separated into the major categories of_____.
A. manufacturing and nonmanufacturing
B. manufacturing and fixed
C. variable and nonmanufacturing
D. fixed and variable
 
49) _____ is the first step in designing a management control system.
A. Evaluating management’s performance
B. Establishing organizational goals
C. Distinguishing between profit centers and cost centers
D. Preparing financial statements
50) _____ is (are) the most basic component of a management control system.
A.The organization’s long-range budget
B.The organization’s goals
C.Top management’s preferences
D.The stockholder’s preferences
51) Identify which of the following is not a characteristic of a management control system.
A.A management control system aids and coordinates the process of making decisions.
B.A management control system encourages short term profitability.
C.A management control system coordinates forecasting sales and cost driver activities, budgeting, and measuring and evaluating performance.
D.A management control system motivates individuals throughout the organization to act in concert.
52) Jewel Company’s revenues are $300 and invested capital is $240. Expenses are currently 60% of sales. Jewel Company’s current return on investment is _____.
A. 50%
B. 100%
C. none of these answers are correct
D. 80%
53) The following information is available for the Peter Company:
Sales $500,000
Invested Capital 312,500
ROI 10%
The return on sales is _____.
A. 10.000%
B. none of these answers is correct
C. 6.250%
D. 1.000%
54) The following information is available for the Peter Company:
Sales $150,000
Invested Capital 156,250
ROI 10%
The return on sales is _____.
A. 10.00%
B. none of these answers is correct
C. 10.42%
D. 62.50%
 

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