Question 1

ROI and residual income can be used as performance measures.

Accepted Answer

A) True 
 B)False

Question 2

Division A's sales are?

Accepted Answer

A)  $125,000. 
B)  $200,000. 
C)  $400,000. 
D)  $625,000. 
A)  $125,000. 
B)  $200,000. 
C)  $400,000. 
D)  $625,000.

Question 3

How much is the return on investment?

Accepted Answer

A)  15%. 
B)  16%. 
C)  20%. 
D)  40%. 
A)  15%. 
B)  16%. 
C)  20%. 
D)  40%.

Question 4

How much is the residual income?

Accepted Answer

A)  $10,000. 
B)  $40,000. 
C)  $50,000. 
D)  $80,000. 
A)  $10,000. 
B)  $40,000. 
C)  $50,000. 
D)  $80,000.

Question 5

Net operating income is defined as:

Accepted Answer

A)  sales minus variable expenses. 
B)  sales minus variable expenses and traceable fixed expenses. 
C)  contribution margin minus traceable and common fixed expenses. 
D)  net income plus interest and taxes. 
A)  sales minus variable expenses. 
B)  sales minus variable expenses and traceable fixed expenses. 
C)  contribution margin minus traceable and common fixed expenses. 
D)  net income plus interest and taxes.

Question 6

Company A's return on investment (ROI)is?

Accepted Answer

A)  4%. 
B)  15%. 
C)  20%. 
D)  36%. 
A)  4%. 
B)  15%. 
C)  20%. 
D)  36%.

Question 7

Transfer prices that one segment of an organization charges other segments of the same organization are always the costs of the goods or services provided.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following are potential benefits of using multi-dimensional performance reporting? I Managers are less likely to miss facets of performance that impact financial results.
II Performance measures can be more easily refined as strategies are changed and a better understanding of what works and what doesn't work is obtained.
III In developing the system managers will focus on understanding cause and effect relationships in the way the business operates resulting in the discovery of opportunities for improvements.

Accepted Answer

A)  Only I and II. 
B)  Only II and III. 
C)  Only I and III. 
D)  I,II and III. 
A)  Only I and II. 
B)  Only II and III. 
C)  Only I and III. 
D)  I,II and III.

Question 9

The use of return on investment as a sole performance measure may lead managers to make decisions that are not in the best interests of the company as a whole.

Accepted Answer

A) True 
 B)False

Question 10

Multidimensional performance systems such as the balanced scorecard are appropriate for not-for-profit organizations but not for commercial businesses.

Accepted Answer

A) True 
 B)False

Question 11

Jimbob Co.has three operating divisions with the following information for the most recent fiscal year.

Accepted Answer

@#IMG-DLM& 
The minimum rate of return set by comp

Question 12

The turnover for Year 1 was?

Accepted Answer

A)  1.2. 
B)  1.5. 
C)  3.0. 
D)  4.0. 
A)  1.2. 
B)  1.5. 
C)  3.0. 
D)  4.0.

Question 13

The turnover for the past year was?

Accepted Answer

A)  1.40. 
B)  2.50. 
C)  2.98. 
D)  6.94. 
A)  1.40. 
B)  2.50. 
C)  2.98. 
D)  6.94.

Question 14

The average operating assets in Year 2 were?

Accepted Answer

A)  $720,000. 
B)  $750,000. 
C)  $800,000. 
D)  $900,000. 
A)  $720,000. 
B)  $750,000. 
C)  $800,000. 
D)  $900,000.

Question 15

Which of the following is not an operating asset?

Accepted Answer

A)  Cash. 
B)  Inventory. 
C)  Plant equipment. 
D)  Common stock. 
A)  Cash. 
B)  Inventory. 
C)  Plant equipment. 
D)  Common stock.

Question 16

Residual income is the net operating income that an investment centre earns above the minimum required return on the investment in operating assets.

Accepted Answer

A) True 
 B)False

Question 17

Some managers believe that residual income is superior to return on investment as a means of measuring performance,since it encourages the manager to make investment decisions that are more consistent with the interests of the company as a whole.

Accepted Answer

A) True 
 B)False

Question 18

For the past year,the margin was?

Accepted Answer

A)  12.50%. 
B)  13.00%. 
C)  14.75%. 
D)  15.00%. 
A)  12.50%. 
B)  13.00%. 
C)  14.75%. 
D)  15.00%.

Question 19

The return on investment last year for the Northern Division was?

Accepted Answer

A)  18.00%. 
B)  28.13%. 
C)  40.00%. 
D)  62.50%. 
A)  18.00%. 
B)  28.13%. 
C)  40.00%. 
D)  62.50%.

Question 20

How much is the residual income?

Accepted Answer

A)  $40,000. 
B)  $80,000. 
C)  $100,000. 
D)  $420,000. 
A)  $40,000. 
B)  $80,000. 
C)  $100,000. 
D)  $420,000.

ROI and residual income can be used as performance measures.

Division A's sales are?

How much is the return on investment?

How much is the residual income?

Net operating income is defined as:

Company A's return on investment (ROI)is?

Transfer prices that one segment of an organization charges other segments of the same organization are always the costs of the goods or services provided.

The use of return on investment as a sole performance measure may lead managers to make decisions that are not in the best interests of the company as a whole.

Multidimensional performance systems such as the balanced scorecard are appropriate for not-for-profit organizations but not for commercial businesses.

Jimbob Co.has three operating divisions with the following information for the most recent fiscal year.

The turnover for Year 1 was?

The turnover for the past year was?

The average operating assets in Year 2 were?

Which of the following is not an operating asset?

Residual income is the net operating income that an investment centre earns above the minimum required return on the investment in operating assets.

Some managers believe that residual income is superior to return on investment as a means of measuring performance,since it encourages the manager to make investment decisions that are more consistent with the interests of the company as a whole.

For the past year,the margin was?

The return on investment last year for the Northern Division was?

How much is the residual income?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters

Exam 12: Capital Budgeting Decisions

ROI and residual income can be used as performance measures.

Division A's sales are?

How much is the return on investment?

How much is the residual income?

Net operating income is defined as:

Company A's return on investment (ROI)is?

Transfer prices that one segment of an organization charges other segments of the same organization are always the costs of the goods or services provided.

The use of return on investment as a sole performance measure may lead managers to make decisions that are not in the best interests of the company as a whole.

Multidimensional performance systems such as the balanced scorecard are appropriate for not-for-profit organizations but not for commercial businesses.

Jimbob Co.has three operating divisions with the following information for the most recent fiscal year.

The turnover for Year 1 was?

The turnover for the past year was?

The average operating assets in Year 2 were?

Which of the following is not an operating asset?

Residual income is the net operating income that an investment centre earns above the minimum required return on the investment in operating assets.

Some managers believe that residual income is superior to return on investment as a means of measuring performance,since it encourages the manager to make investment decisions that are more consistent with the interests of the company as a whole.

For the past year,the margin was?

The return on investment last year for the Northern Division was?

How much is the residual income?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters