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COST ACCOUNTING: A MANAGERIAL EMPHASIS, 12TH EDITION

BY CHARLES T. HORNGREN, SRIKANT M. DATAR, AND GEORGE FOSTER

Cost Accounting 12E Page 1 Check Figures

Chapter 23. Performance Measurement, Compensation, and Multinational Considerations
23-16 2. A: 10%; 2.0; 20% B: $5,000,000; 10%; 0.1
C: $10,000,000; $50,000; 1%
23-17 1. Column: B $330 $293 $750 $873 C $4,200 $5,273 $2,340 $5,700 $7,613
D $1,000 $1,055 $1,900 $2,225 E 8.5% 26.3% 12.5% 12.6% 13.2% 11.5%
F 4.1 4.2 1.8 1.7 3.2 3.0 3.4
G 35.4% 55% 48.4% 36.7% 40.6% 39.5% 39.2%
23-18 1. $6.25% 2. $390 3. $382
23-19 1. OI = $16,000,000 Rev = $200,000,000 Selling price = $2,000
2. 150,000, 45% ROI; 50,000, -5.00% ROI
23-20 2. Charter DM: J-J $0 J-D $6,600 2003 $6,600
Mesa DM: J-J $10,840 J-D $11,120 2003 $21,960
23-21 1. ROI: Atlantic 20% Pacific 15%
2. RI: Atlantic $80,000 Pacific $150,000
3. EVA: Atlantic $45,000 Pacific $100,000
23-22 1. ROI: Truck Rental 7.5% Transportation 9.0%
2. RI: Truck Rental $(231,000) Transportation $51,000
3. RI: Truck Rental $(495,000) Transportation $(285,000)
4. EVA: Truck Rental $(349,800) Transportation $(130,200)
23-23 Bristol, RI using NBV; Darden, RI using GBV; Gregory, ROI using NBV or GBV
23-24 1. (a) $1,200,000 (b) 15.43%
2. U.S. Div 15% ROI vs. Swedish Div 14.4% ROI when measured in dollar terms
3. US Div RI $240,000 vs. Swedish Div RI (in U.S. dollars) of $180,000
23-25 1. (a) ROI 17% (b) ROI 18.1% (c) We can’t tell
2. Durham’s RI $90,000 vs. Lyon’s RI (in U.S. dollars) of $50,000
3. Durham’s ROI 17% vs. Lyon’s ROI (in U.S. dollars) of 16%
23-27 1. OI: A $312,000 O $247,000 T $416,000 Total $975,000
2. No, worse off 3. Yes, better off
23-28 1. Historical Cost ROI: C 38.24% AS 19.13% RM 23.46%
2. Current Cost ROI: C 18.49% AS 14.18% RM 21.88%
23-29 1. NetPro ROI: 2005 0.29 (=1.11 x 0.26) 2006 0.12 (=0.94 x 0.13)
OnPoint ROI: 2005 0.12 (=1.25 x 0.10) 2006 0.28 (=1.46 x 0.19)
2. NP 2005: R&D 16% P 30% M & Dist 39% CS 15%
NP 2006: R&D 10% P 35% M & Dist 46% CS 10%
OP 2005: R&D 13% P 40% M & Dist 36% CS 11%
OP 2006: R&D 18% P 30% M & Dist 36% CS 16%
23-30 1. 19.2% ROI for new plant is lower than current ROI of 24%
2. Yes, would add $105,000 to RI
3. Yes, 20% ROS of new plant is greater than current 19% ROS
23-32 1. 2006 Newspapers: 0.939 x 0.239 = 0.224
2006 Television: 2.133 x 0.025 = 0.053
2. Proposed investment ROI of 15% is lower than current ROI of 22.4%
3. a. 2006 RI: Newspapers $1,075 mil; TV $(420) mil
b. Yes, because new investment increases RI by $12 million
23-34 1. (a) $(400,000) (b) $1,100,000
23-35 2. UFP is emphasizing profit
23-36 1. ROS 12%; ROI 18%
2. (a) Cut costs by $200,000 (b) Decrease assets by $1,000,000
3. RI $300,000 4. Decrease assets by $700,000

Cost Accounting 12E Page 2 Check Figures