Question

1.

artificial price used when goods or services are transferred from one segment of the company to another.

		transfer price
		direct cost
		indirect cost
		variance

2.

Income -(investment x cost of capital percentage)

		residual income
		margin turnover
		return on investment
		transfer price

3.

What is a balanced scorecard?

		a way to insure profits balance with sales minus expenses
		management tool that recognizes a company's responsibility to all its stakeholders
		tool for making sure debits equal credits.
		budgeting tool

4.

When preparing the cash budget, what should be considered?

		depreciation
		loss of market share
		cash payments from customers
		loss of market value

Answer 1

Solution 1.

Answer - Option " Transfer price " is the correct Option

Explaination:

Transfer price is price company uses when goods and services are transfer within the compnay like another branch , or segment or another process.

Solution 2.

Answer - Option " Residual Income " s the correct Option.

Explaination:

Residual Income = Income -(investment x cost of capital percentage), It represents the excss income over minimum required return on Investment.

Solution .3

Answer - Option with "management tool that recognizes a company's responsibility to all its stakeholders" is the correct Option.

Explaination

A balance score card help the management to measure the performance in meeting the obejective ffor company towards the shareholder.

Solution:4.

Answer : option with " Cash Payment from Customer " is the correct Option.

Explaination:

In cash Budget all the Income and expenses which are received and paid in Cash is consiidered , whereas Loss of market share , depreciation and loss of market value is non Cash exp . Therefore it will not be included in Cash Budget.