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
Explain how budgeting was incorporated to achieve the company's overall goals and objectives. Reflect on whether or not the budgets were effectively applied and whether you
On April 1, 2014, Briggs Corp. purchases a 24-month property insurance policy for $72,000. The policy is effective immediately. Assume that Briggs prepares adjusting entrie
How much should the company increase its Debt Investments account for these bonds and what amount should be reported as a charge against income in the income statement if th
Using cost + pricing calculate the price, given the cost and profit information and calculate the Target cost per stove. How many stoves must Packer Inc. sell to meet the targ
Bob and Elizabeth, both 55 years old and married, sell their personal residence to Wolfgang in 2011. Wolfgang pays $660,000 and assumes their $90,000 mortgage. To make the s
Carleton Service Center just purchased an automobile hoist for $15,000.The hoist has a 5-year life and an estimated salvage value of $1,080. Installation costs were $2,900,
Marketing share of mechanical watches where at an all time low of 5%. Research so far has indicated that the watches tend to fail three tests frequently and you need to reco
ACC203 Accounting Information Individual Assignment. You have to provide an individual work report on how you have worked to produce your MYOB assignment. Major part of your