Solve the questions on organizational management

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Reference no: EM1316059

Solve the questions on organizational management.

1. In a strongly centralized organization there is a large amount of freedom to make decisions at all levels of management.

2. Only those fixed costs labeled "common" are charged to the individual segments when preparing a segmented income statement.

3. A transfer price is the price charged when one segment of a company provides goods or services to another segment of the company.

4. A segment margin is computed by deducting variable and traceable fixed expenses from the sales of a segment.

5. Net operating income is earnings before interest and taxes.

6. If a cost must be arbitrarily allocated in order to be assigned to a particular segment, then that cost is a common cost.

7. ROI and residual income are tools used to evaluate managerial performance in profit centers.

8. Net operating income is income after interest and taxes.

Reference no: EM1316059

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