The performance reports generated by a responsibility accounting system often form a "hierarchy of performance reports." Explain what is meant by this term.
What will be an ideal response?
The performance evaluations are tied to the organizational chart. The performance report at each level reflects results of the units that report to the manager at that particular level, with the results being combined and "delivered" to the next higher level in the firm. Thus, each manager receives feedback that reflects his or her areas of responsibility, and the whole process parallels a pyramiding of accountability throughout the organization.
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________ is the leader behavior that organizes and defines what group members should be doing to maximize output.
A. Transactional leadership B. Consideration C. Transformational leadership D. Empowerment E. Initiating structure
Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1's contribution to overhead as a percent of sales is:Dept.Sales Cost of Goods Sold Direct Expenses Indirect Expenses 1$1,000,000 $700,000 $100,000 $80,000 2 400,000 150,000 40,000 100,000 3 700,000 300,000 150,000 20,000
A. 30.0% B. 52.5% C. 20.0% D. 57.1% E. 35.7%
Honor, a market researcher for a packaged goods company, is segmenting a population of consumers based on how frequently they buy different types of packaged goods. Honor is using behavioral segmentation
Indicate whether the statement is true or false
Both U.S. GAAP and IFRS require the presentation of an income statement and the presentation of the items of Other Comprehensive Income. U.S. GAAP permits the following reporting format(s) except for:
a. a single statement of comprehensive income that shows all the changes in net assets except from transactions with owners. b. a two-statement presentation that includes an income statement and a separate statement of comprehensive income. c. a separate display of the items comprising Other Comprehensive Income within a statement of changes in shareholders' equity. d. a separate display of the items comprising Other Comprehensive Income within a statement of retained earnings. e. All of the above are acceptable reporting formats.