Prepare a report monty the operating incomes
Course:- Accounting Basics
Reference No.:- EM131567746

Assignment Help
Assignment Help >> Accounting Basics

Problem - Scranton Company has three operating segments. She managers of each segment have decision-making authority regarding pricing, cost control and asset investment. The following information is available for the three segments for the third quarter of 2014:









Operating Expenses




Invested Assets




Number of Transactions  




Desired Minimum ROI




The company has a centralized accounting system. For financial reporting purpose, accounting department costs and common corporate costs are allocated to the segments as follows:

Accounting Department (number of transactions) - $60,000

Corporate Headquarters Costs (per revenue dollar) - $810,000

Required -

Part 1 - Prepare a report Monty the operating incomes of the three segments for performance evaluate purposes.

Part 2 - Identify the most successful segment according to each of the following measurements: (Show supporting calculations.)

  • Segment profit margin
  • Segment return on investment
  • Segment residual income

Part 3 - Which of the measurements in Part 2 would you recommend for comparing the performance of the segments? Why?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
William Nowland's filing status is qualifying surviving spouse. His taxable income for 2009 is $76,000. Included in that amount is $5,000 of qualified dividends. How much fe
Societies set benchmarks to guide members through communications with one another. Also, however, it is not frequently evident to the stripped eye; organizations have compa
Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amoun
The company issued to the stockholders 100,000 rights. Ten rights are needed to buy one share of stock at $34. The rights were void after 30 days. The market price of the st
Details of the year, expenditures for each nonmajor fund Rationale for including component units as part of the reporting entity Current year, revenues, expenditures, and chan
1. When working on a design, what are some of the typical business goals you can expect to find for today's organizations? Why is it important for you to identify these? 2.
Thus far in class we've talked about many interesting topics in international accounting including international accounting standards, the history of accounting, IFRS vs. US
6-38 Weighted-Average MethodGifford, Inc. produces a single model of a popular cell phone in large quantities. A single cell phone moves through two departments, assembly a