Controllable margin is defined as quizlet
WebDec 14, 2024 · Controllable margin, which is also known as segment margin, refers to the project’s revenue less expenses. Required rate of return is the minimum amount of return that a company is willing to accept from a given investment. Average operating assets are the kind of resources required to sustain the company’s operations. WebExpert Answer. Solution: D controllable margin by average …. Return on investment is calculated by dividing contribution margin by sales, controllable margin by sales, contribution margin by average operating assets, controllable margin by average operating assets.
Controllable margin is defined as quizlet
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WebApr 7, 2024 · The controllability of fixed costs depends upon the responsibilities given to the divisional manager. In this case we are told that only 20% of the fixed costs (20% x $80,000 = $16,000) are controllable by the divisional manager. Controllable profit is therefore $160,000 – $16,000 = $144,000 To me, controllable contribution is $144,000. WebWhat is the controllable margin used for? Managerial Accounting: Managerial accounting focuses on providing information to the management to help them fulfill their functions of planning,...
WebAug 17, 2024 · A variable cost is an expense that changes in proportion to production output or sales. When production or sales increase, variable costs increase; when production or sales decrease, variable... WebControllable Margin $100,000 $60,000 $160,000 = 22.2% Average operating assets 800,000 (80,000) 720,000 Change in Income: Sales $700,000 Controllable Margin …
WebQuestion 17 1 out of 1 points A division’s operating results include: controllable margin, $200,000; sales $2,200,000; andoperating assets, $800,000. ROI is 25%. Management is considering a project with sales of $100,000, variable expenses of $60,000, fixed costs of $40,000; and an asset investment of $150,000. WebWhat is the controllable margin? Controllable Margin 2. What is the total contribution by profit This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you learn core concepts. See Answer Question: Meargia Plastics is evaluating its plastic bottles division.
WebAccounting questions and answers. 2. Controllable margin is equal to:a) Sales minus Variable Expensesb) Sales minus Variable Expenses minus Controllable FixedCostsc) …
WebProject A - Annual controllable margin = $24,000, operating assets = $400,000 Project B - Annual controllable margin = $60,000, operating assets = $550,000 Which project should be funded? a. Both projects b. Project A c. Project B d. Neither project is all tea veganWebControllable margin is used as a refined measure of strategic business unit reporting that is best described as: a. Margins derived after comprehensive consideration of all costs … oliver mews dalton terraceWebBusiness Accounting Accounting questions and answers Power Manufacturing recorded operating data for its shoe division for the year. How much is controllable margin for the year? a) 20% b) 50% c) $300,000 d) $120,000 How do you work this problem? Thanks!! This problem has been solved! is all tea healthyoliver meets fagin storyWebCONTROLLABLE MARGIN technically is the excess of contribution margin over controllable fixed costs. Managerially it is that margin that you can reasonably expect … is all tea high in oxalatesWebReturn on investment is calculated by dividing a) contribution margin by average operating assets. b) contribution margin by sales. C) controllable margin by average operating assets. d) controllable margin by sales Save This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you learn core concepts. oliver mellor from corrieWebControllable Margin Average operating assets ROI may be improved in several ways: o Reduce expenses which increases controllable margin o Increase sales which increases … oliver memorial trust