chapt 11 and 11a Flashcards
1
Q
contribution margin separates …
A
variable exp and fixed exp
2
Q
common costs are not allocated to…
A
each segment, only in company I/S
3
Q
common costs not allocated to segments for 2 reasons
A
- makes business look profiutable when maybe not
- forces amangers to be held accountable for costs they cant control
4
Q
residual income encourages managers to …
A
make profitable investments that wouldf be rejected by managers using roi
5
Q
4 performance measures (balanced scorecard)
A
financial
customes
internal processes
learning and growth
6
Q
A
