02 Jul Managerial Accounting: Departmental income statement in an enterprise
Question Description
1) What limits the usefulness to managers of fixed budget performance reports? How can these limits be overcome?
2)
Explain the importance of departmental income statement in an enterprise in which several separate departments function. Provide an example of a departmental income statement in which at least three shared indirect costs are divided according to three different appropriate allocation bases. Provide a departmental return on investment analysis based on the template given in Exhibit 9-17 of the textbook.
Textbook is
Managerial Accounting 5th edition
John J. Wild University of Wisconsin at Madison Ken W. Shaw University of Missouri at Columbia
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