The Following Data Are Taken from the Management Accounting Reports

question 44

Multiple Choice

The following data are taken from the management accounting reports of Dancer Co.: $\begin{array}{llll}\underline{\text { Div. C }}&\underline{ \text { Div. B }} &\underline{ \text { Div. A} } & \\2,700,000 & \$ 3,700,000 & \$ 3,600,000 & \text { Income from operations } \\2,200,000 & 2,100,000 & 3,400,000 & \text { Total service department charges }\end{array}$ If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that:

• A) division A's manager is given the bonus.
• B) division B's manager is given the bonus.
• C) division C's manager is given the bonus.
• D) the managers of Divisions B and C divide the bonus.

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Definitions:

Provided Data

Information or figures that are supplied or available to be used for analysis or computation.

Book Value Per Share

A financial measure used to assess the per-share value of a company based on its equity available to common shareholders, divided by the number of outstanding shares.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, representing the company's profitability over a specified period.

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested, expressed as a percentage.