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1. (TCO 8) Which of the following is not a benefit associated with decentralization? (Points : 6)?? Quicker decision making? Increased motivation of subunit managers? Increased competition among managers? Greater responsiveness to local needs??? 2. (TCO 8) The San Jose Manufacturing Company has two divisions in Kansas—the Holton Division and the Derby Division. Currently, Derby buys a part (10,000 units) from Holton for $16 per unit. Holton has purchased new equipment and wants to increase the price to Derby to $18 per unit. The controller of Derby claims that she cannot afford to go that high, as it will decrease the division’s profit to near zero. Derby can buy the part from an outside supplier for $16 per unit. The incremental costs per unit that San Jose incurs to produce each unit are Holton’s variable cost of $12. Fixed costs per unit to Holton with the recent purchase of equipment are $5.?Holton has no alternative uses for its facilities. Should Derby continue to buy from Holton or buy from the external supplier??Company as a whole/Derby Division only (Points : 6)?? Buy from external supplier/ Buy from external supplier? Buy from external supplier/ Buy from Holton Division? Buy from Holton Division/ Buy from Holton Division? Buy from Holton Division/ Buy from external supplier??? 3. (TCO 8) When calculating performance measures, it is best to use (Points : 6)?? steady improvement against targets.? gross book value asset measurement.? historical cost asset measurement.? current cost asset measurement.??? 4. (TCO 8) Information pertaining to the Woodsy Creek Division of MO Corporation for 20XX follows. Revenues?$950,000??Variable costs?575,000??Traceable fixed costs?336,500??Average invested capital?350,000??Imputed interest rate?10%???The return on sales (ROS), a component of the DuPont method of profitability analysis, was (rounded to the nearest percent) (Points :…
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cost_accounti….docx