1. Responsibility Accounting and Performance Evaluation
Chapter 24
Exercises

2. Responsibility Accounting
In-Class Exercises:
Exercise No Page
E Return on Investment

3. Responsibility Accounting

4. Responsibility Accounting

5. Responsibility Accounting

6. Responsibility Accounting

7. Responsibility Accounting

8. Responsibility Accounting
End of Exercise

9. Responsibility Accounting
In-Class Exercises:
Exercise No Page
E Residual Income

10. Responsibility Accounting
Exercise E24-18:
Zooms, a national manufacturer of lawn mowing and snow blowing equipment, segments it business according to customer type: professional and residential. The following divisional information was available for the past year:
Net Sales Operating Income Avg Total Assets Residential…………$ 520, $ 64, $ 192, Professional………. 1,020, , ,000
Management has a 26% target rate of return for each division.
Requirements: (1) Calculate each division’s Residual Income.

11. Responsibility Accounting

12. Responsibility Accounting
End of Exercise