This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Responsibility Accounting > Responsibility Accounting – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Responsibility Accounting Quiz 2 (11 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If a firm operates at capacity, the minimum transfer price should be the A) Outlay cost plus contribution margin. B) External market price less any cost savings. C) Either A or B. D) Neither A nor B. Show Answer Correct Answer: C) Either A or B. 2. If the company has a sales margin of 0.15 and capital turnover by 3.0, what is the return on investment for the company? A) 4.5%. B) 45%. C) 0.45%. D) 0.045%. Show Answer Correct Answer: B) 45%. 3. Formula for Return on Investment (ROI) is A) Sales margin x operating asset. B) Sales margin x capital turnover. C) Sales margin x sales revenue. D) Sales margin x net income. Show Answer Correct Answer: B) Sales margin x capital turnover. 4. A responsibility center in which the manager is held accountable for the profitable use of assets and capital is commonly known as a(n): A) Cost Center. B) Revenue Center. C) Profit Center. D) Investment Center. Show Answer Correct Answer: D) Investment Center. 5. An advantage of using a cost based transfer price is that A) Is easy to implement. B) Achieve goal congruence. C) Preserves subunit autonomy. D) Is useful for evaluating subunit performance. Show Answer Correct Answer: A) Is easy to implement. 6. Behavioral assumptions in responsibility accounting based on organizational goals are called A) Organizational structure. B) Management by Objective. C) Management by Exception. D) Management by Rivalry. Show Answer Correct Answer: B) Management by Objective. 7. Number of repeat customers is a KPI for which perspective? A) Financial. B) Customer. C) Internal Business. D) Learning and Growth. Show Answer Correct Answer: B) Customer. 8. What is a KPI for the Investment Center? A) Performance Reports. B) Return on Investment. C) Responsibility Reports. D) Budgets. Show Answer Correct Answer: B) Return on Investment. 9. The segment margin of Division A and ABC Corporation should not include A) Net Sales of Division A. B) Fixed Selling expenses of Division A. C) Variable selling expenses of Division A. D) Division A's fair share of the salary of ABC Corporation's president. Show Answer Correct Answer: D) Division A's fair share of the salary of ABC Corporation's president. 10. In theory, the optimal method for establishing a transfer price is A) Market price. B) Incremental cost. C) Flexible budget cost. D) Budgeted cost with or without a mark-up. Show Answer Correct Answer: A) Market price. 11. Which center controls costs? A) Cost center. B) Revenue Center. C) Profit Center. D) Investment Center. Show Answer Correct Answer: A) Cost center. ← PreviousRelated QuizzesManagement Accounting QuizzesAccounting QuizzesResponsibility Accounting Quiz 1 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books