A company plans to implement a bonus plan based on segment performance. In addition, the company plans to convert to a responsibility accounting system for segment reporting. The following costs which have been included in the segment performance reports that
have been prepared under the current system are being reviewed to determine if they should be included in the responsibility accounting segment reports:
I. Corporate administrative costs allocated on the basis of net segment sales.
II. Personnel costs assigned on the basis of the number of employees in each segment
III. Fixed computer facility costs divided equally among each segment
IV.
Variable computer operational costs charged to each segment based on actual hours used times a predetermined standard rate; any variable cost efficiency or inefficiency remains in the computer department. Of these four cost items, the only item that could logically be included in the segment performance reports prepared on a responsibility accounting basis would be the
Which of the following performance measures disincentives engaging in earnings management?
An increase in excise taxes will generate <List A- tax revenue if it is levied on products for which demand is <List B> elastic.
A supervisor receives a complaint from an employee who is frustrated about having to learn a new software program. The supervisor responds that the new software will enable the employee to work more efficiently and with greater accuracy. This response is an example of:
The required adjusting entry at December 31 related to salaries and wages is
