chapter 24 exercises responsibility accounting and performance evaluation

Chapter 24

Exercises

Responsibility Accounting and

Performance Evaluation

Responsibility AccountingResponsibility AccountingResponsibility AccountingResponsibility Accounting

In-Class Exercises:

Exercise No. Page E24-17 1511 Return on Investment

In-Class Exercises:

Exercise No. Page E24-17 1511 Return on Investment

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Responsibility AccountingResponsibility AccountingResponsibility AccountingResponsibility Accounting

In-Class Exercises:

Exercise No. Page E24-18 1512 Residual Income

In-Class Exercises:

Exercise No. Page E24-18 1512 Residual Income

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Exercise E24-18: Zooms, a national manufacturer of lawn mowing and snow blowing equipment, segments it business according to customer type: professional and residential. The following divisional information was available for the past year: Net Sales Operating Income Avg Total Assets Residential…………$ 520,000 $ 64,320 $ 192,000 Professional………. 1,020,000 158,760 392,000

Management has a 26% target rate of return for each division. Requirements: (1) Calculate each division’s Residual Income.

Exercise E24-18: Zooms, a national manufacturer of lawn mowing and snow blowing equipment, segments it business according to customer type: professional and residential. The following divisional information was available for the past year: Net Sales Operating Income Avg Total Assets Residential…………$ 520,000 $ 64,320 $ 192,000 Professional………. 1,020,000 158,760 392,000

Management has a 26% target rate of return for each division. Requirements: (1) Calculate each division’s Residual Income.

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