Question 1

Which of the following is NOT part of the Balanced Scorecard Framework?

Accepted Answer

A)  "How do we appear to shareholders?" 
B)  "How will we sustain change and progress?" 
C)  "What business processes must we excel at?" 
D)  "What is our current market share?" 
A)  "How do we appear to shareholders?" 
B)  "How will we sustain change and progress?" 
C)  "What business processes must we excel at?" 
D)  "What is our current market share?" D

Question 2

Performance measures that monitor a company's effectiveness in identifying new products or services and then creating and bringing those products to market are:

Accepted Answer

A)  Outcome performance measures 
B)  Innovation process measures 
C)  Research and development measures 
D)  Financial performance measures 
A)  Outcome performance measures 
B)  Innovation process measures 
C)  Research and development measures 
D)  Financial performance measures B

Question 3

Which of the following is NOT true of the balanced scorecard approach to performance measurement?

Accepted Answer

A)  It includes financial and nonfinancial measures 
B)  The measures developed must match the company's strategy and vision 
C)  It should include measures of financial, customer, internal process, and learning and growth activities 
D)  The planning horizon focus is very short term 
A)  It includes financial and nonfinancial measures 
B)  The measures developed must match the company's strategy and vision 
C)  It should include measures of financial, customer, internal process, and learning and growth activities 
D)  The planning horizon focus is very short term D

Question 4

Performance measures that allow a company to monitor the capabilities of the employee, the information system, and the organizational structure would best be called:

Accepted Answer

A)  Innovative process measures 
B)  Service-after-sale process measures 
C)  Learning and growth measures 
D)  Financial performance measures 
A)  Innovative process measures 
B)  Service-after-sale process measures 
C)  Learning and growth measures 
D)  Financial performance measures

Question 5

Costs incurred due to reduced product yield are:

Accepted Answer

A)  Prevention costs 
B)  Appraisal costs 
C)  Internal failure costs 
D)  External failure costs 
A)  Prevention costs 
B)  Appraisal costs 
C)  Internal failure costs 
D)  External failure costs

Question 6

An example of a leading measure of learning and growth is:

Accepted Answer

A)  Output per employee 
B)  Average employee years with the company 
C)  Percentage of employees participating in education activities 
D)  Number of women managers 
A)  Output per employee 
B)  Average employee years with the company 
C)  Percentage of employees participating in education activities 
D)  Number of women managers

Question 7

Gremi Company provides landscaping services to private home owners. Recently Gremi has decided to develop a balanced scorecard. Gremi has developed the following goals and objectives:
   
For each of these objectives, provide one measure of performance that Gremi could use.

Accepted Answer

For each of these ob

Question 8

The formula for economic value added is:

Accepted Answer

A)  Net operating profit after tax - (Minimum required rate of return × Invested capital) 
B)  Net operating profit after tax - (Weighted average cost of capital × Average total assets) 
C)  Net operating profit before tax - (Minimum required rate of return × Average total assets) 
D)  Net operating profit after tax - (Weighted average cost of capital × Invested capital) 
A)  Net operating profit after tax - (Minimum required rate of return × Invested capital) 
B)  Net operating profit after tax - (Weighted average cost of capital × Average total assets) 
C)  Net operating profit before tax - (Minimum required rate of return × Average total assets) 
D)  Net operating profit after tax - (Weighted average cost of capital × Invested capital)

Question 9

What are the two types of customer performance measures?

Accepted Answer

A)  Innovation process and operations process 
B)  Leading performance and outcome performance 
C)  Service-after-sale process and six sigma quality 
D)  Leading indicators and lagging indicators 
A)  Innovation process and operations process 
B)  Leading performance and outcome performance 
C)  Service-after-sale process and six sigma quality 
D)  Leading indicators and lagging indicators

Question 10

An example of a service-after-sale process measure is:

Accepted Answer

A)  Customer requests handled on first call 
B)  Modifications required per design 
C)  Six sigma quality 
D)  Costs per customer service incident 
A)  Customer requests handled on first call 
B)  Modifications required per design 
C)  Six sigma quality 
D)  Costs per customer service incident

Question 11

A process that measures all costs involved in creating, producing, and using a product is known as:

Accepted Answer

A)  Outcome performance measures 
B)  Balanced scorecard 
C)  Leading performance measures 
D)  Life cycle costing 
A)  Outcome performance measures 
B)  Balanced scorecard 
C)  Leading performance measures 
D)  Life cycle costing

Question 12

Yavapai Industries has decided to start calculating economic value added. Yavapai's accountant gathered the following information:   Using this information, calculate Yavapai's economic value added.

Accepted Answer

A)  $41,773 
B)  $27,900 
C)  $298,375 
D)  $37,541 
A)  $41,773 
B)  $27,900 
C)  $298,375 
D)  $37,541

Question 13

Which of the following is a measure of learning and growth in an organization?

Accepted Answer

A)  Employee satisfaction 
B)  Productivity 
C)  Employee retention 
D)  All of these are correct 
A)  Employee satisfaction 
B)  Productivity 
C)  Employee retention 
D)  All of these are correct

Question 14

Which of the following is NOT a leading performance measure?

Accepted Answer

A)  Time to complete contract 
B)  Delivery cost to customer 
C)  Acquisition rates 
D)  Average response time for a service call 
A)  Time to complete contract 
B)  Delivery cost to customer 
C)  Acquisition rates 
D)  Average response time for a service call

Question 15

An example of an outcome measure of learning and growth is:

Accepted Answer

A)  Output per employee 
B)  Average life cycle of personal computers owned by the company 
C)  Percentage of employees participating in education activities 
D)  Average time to disseminate information to employees 
A)  Output per employee 
B)  Average life cycle of personal computers owned by the company 
C)  Percentage of employees participating in education activities 
D)  Average time to disseminate information to employees

Question 16

The criticism of traditional management accounting measures is that they focus too much on:

Accepted Answer

A)  Intangible corporate capabilities 
B)  Information assets 
C)  Periodic financial measures 
D)  Research and development 
A)  Intangible corporate capabilities 
B)  Information assets 
C)  Periodic financial measures 
D)  Research and development

Question 17

Design cycle time is an example of a(n):

Accepted Answer

A)  Innovation process measure 
B)  Financial performance measure 
C)  Service-after-sale process measure 
D)  Operations process measure 
A)  Innovation process measure 
B)  Financial performance measure 
C)  Service-after-sale process measure 
D)  Operations process measure

Question 18

In general, performance measures that allow a company to monitor the cost, quality, and time of producing goods or services are called:

Accepted Answer

A)  Outcome performance measures 
B)  Leading performance measures 
C)  Customer retention measures 
D)  Financial performance measures 
A)  Outcome performance measures 
B)  Leading performance measures 
C)  Customer retention measures 
D)  Financial performance measures

Question 19

Costs incurred for routine maintenance of production equipment are:

Accepted Answer

A)  Prevention costs 
B)  Appraisal costs 
C)  Internal failure costs 
D)  External failure costs 
A)  Prevention costs 
B)  Appraisal costs 
C)  Internal failure costs 
D)  External failure costs

Question 20

A company's invested capital is equal to its:

Accepted Answer

A)  Short-term and long-term assets 
B)  Operating assets 
C)  Total assets less non-interest-bearing (short term) liabilities 
D)  Long-term assets 
A)  Short-term and long-term assets 
B)  Operating assets 
C)  Total assets less non-interest-bearing (short term) liabilities 
D)  Long-term assets

Exam 24: New Measures of Performance

Which of the following is NOT part of the Balanced Scorecard Framework?

Performance measures that monitor a company's effectiveness in identifying new products or services and then creating and bringing those products to market are:

Which of the following is NOT true of the balanced scorecard approach to performance measurement?

Performance measures that allow a company to monitor the capabilities of the employee, the information system, and the organizational structure would best be called:

Costs incurred due to reduced product yield are:

An example of a leading measure of learning and growth is:

Gremi Company provides landscaping services to private home owners. Recently Gremi has decided to develop a balanced scorecard. Gremi has developed the following goals and objectives: For each of these objectives, provide one measure of performance that Gremi could use.

The formula for economic value added is:

What are the two types of customer performance measures?

An example of a service-after-sale process measure is:

A process that measures all costs involved in creating, producing, and using a product is known as:

Yavapai Industries has decided to start calculating economic value added. Yavapai's accountant gathered the following information: Using this information, calculate Yavapai's economic value added.

Which of the following is a measure of learning and growth in an organization?

Which of the following is NOT a leading performance measure?

An example of an outcome measure of learning and growth is:

The criticism of traditional management accounting measures is that they focus too much on:

Design cycle time is an example of a(n):

In general, performance measures that allow a company to monitor the cost, quality, and time of producing goods or services are called:

Costs incurred for routine maintenance of production equipment are:

A company's invested capital is equal to its:

Accounting Information: Users and Uses

Financial Statements: An Overview

The Accounting Cycle: The Mechanics of Accounting

Completing the Accounting Cycle

Internal Controls: Ensuring the Integrity of Financial Information

Receivables: Selling a Product or a Service

Inventory and the Cost of Sales

Completing the Operating Cycle

Investments: Property, Plant, and Equipment and Intangible Assets

Financing: Long-Term Liabilities

Financing: Equity

Investments: Debt and Equity Securities

Statement of Cash Flows

Analyzing Financial Statements

Management Accounting and Cost Concepts

Cost Flows and Business Organizations

Activity-Based Costing

Budgeting and Control

Controlling Cost and Profit

Inventory Management and Variable and Absorption Costing

Cost Behavior and Decisions Using C-V-P Analysis

Relevant Information and Decisions

Capital Investment Decisions

Filters