Question 1

The balance scorecard approach usually includes all of the following categories of measures except:

Accepted Answer

A)  direct material measures. 
B)  internal business process measures. 
C)  financial measures. 
D)  learning and growth measures. 
A)  direct material measures. 
B)  internal business process measures. 
C)  financial measures. 
D)  learning and growth measures.

Question 2

Residual income is income plus an imputed interest charge for the investment.

Accepted Answer

A) True 
 B)False

Question 3

In 2003 the real estate market experienced an all-time high revenue with a net income of $45 billion with investment of $10 billion.What is the ROI for the real estate industry?

Accepted Answer

A)  4.5. 
B)  5.44. 
C)  6.22. 
D)  14.2. 
A)  4.5. 
B)  5.44. 
C)  6.22. 
D)  14.2.

Question 4

Cable Company had the following results for the year just ended:   Cable Company's average operating assets during the year were?

Accepted Answer

A)  $10,000. 
B)  $12,500. 
C)  $50,000. 
D)  $200,000. 
A)  $10,000. 
B)  $12,500. 
C)  $50,000. 
D)  $200,000.

Question 5

Delmar Corporation is considering the use of residual income as a measure of the performance of its divisions.What major disadvantage of this method should the company consider before deciding to institute it?

Accepted Answer

A)  This method does not make allowance for difference in the size of compared divisions. 
B)  Opportunities may be undertaken which will decrease the overall return on investment. 
C)  The minimum required rate of return may eliminate desirable opportunities from consideration. 
D)  Residual income does not measure how effectively the division manager controls costs. 
A)  This method does not make allowance for difference in the size of compared divisions. 
B)  Opportunities may be undertaken which will decrease the overall return on investment. 
C)  The minimum required rate of return may eliminate desirable opportunities from consideration. 
D)  Residual income does not measure how effectively the division manager controls costs.

Question 6

Howe Company increased its ROI from 20% to 25%.Net operating income and sales remained at their previous levels of $40,000 and $1,000,000 respectively.The increase in ROI was attributed to a reduction in average operating assets brought about by the sale of obsolete inventory at cost (the proceeds from the sale were used to reduce bank loans).By how much was inventory reduced?

Accepted Answer

A)  $8,000. 
B)  $10,000. 
C)  $40,000. 
D)  it is impossible to determine from the data given. 
A)  $8,000. 
B)  $10,000. 
C)  $40,000. 
D)  it is impossible to determine from the data given.

Question 7

For the past year,the turnover was?

Accepted Answer

A)  2. 
B)  4. 
C)  10. 
D)  25. 
A)  2. 
B)  4. 
C)  10. 
D)  25.

Question 8

A key feature of the balanced scorecard performance measurement system is that the different dimensions are linked together.

Accepted Answer

A) True 
 B)False

Question 9

Turnover is computed by dividing average operating assets into:

Accepted Answer

A)  invested capital. 
B)  total assets. 
C)  net operating income. 
D)  sales. 
A)  invested capital. 
B)  total assets. 
C)  net operating income. 
D)  sales.

Question 10

Division B's average operating assets are?

Accepted Answer

A)  $81,200. 
B)  $130,000. 
C)  $1,333,333. 
D)  $2,080,000. 
A)  $81,200. 
B)  $130,000. 
C)  $1,333,333. 
D)  $2,080,000.

Question 11

The net operating income in Year 1 was?

Accepted Answer

A)  $90,000. 
B)  $135,000. 
C)  $140,000. 
D)  $150,000. 
A)  $90,000. 
B)  $135,000. 
C)  $140,000. 
D)  $150,000.

Question 12

If the Axle Division sells 15,000 units per year,the residual income should be?

Accepted Answer

A)  $10,000. 
B)  $30,000. 
C)  $50,000. 
D)  $100,000. 
A)  $10,000. 
B)  $30,000. 
C)  $50,000. 
D)  $100,000.

Question 13

In looking at ROI,turnover measures management's ability to control operating expenses in relation to sales.

Accepted Answer

A) True 
 B)False

Question 14

The net operating income for Year 1 was?

Accepted Answer

A)  $240,000. 
B)  $256,000. 
C)  $384,000. 
D)  $768,000. 
A)  $240,000. 
B)  $256,000. 
C)  $384,000. 
D)  $768,000.

Question 15

Support departments within an organization such as information technology,cannot be evaluated as profit centres as they have no external sales revenues.

Accepted Answer

A) True 
 B)False

Question 16

For purposes of determining the costs to be included in each segment's performance evaluations,in general common fixed costs should be allocated to each segment and traceable fixed costs should not be assigned to segments.

Accepted Answer

A) True 
 B)False

Question 17

Sales in Year 1 amounted to?

Accepted Answer

A)  $400,000. 
B)  $750,000. 
C)  $900,000. 
D)  $1,200,000. 
A)  $400,000. 
B)  $750,000. 
C)  $900,000. 
D)  $1,200,000.

Question 18

For the past year,the return on investment was?

Accepted Answer

A)  15.75%. 
B)  20.50%. 
C)  25.00% 
D)  33.33%. 
A)  15.75%. 
B)  20.50%. 
C)  25.00% 
D)  33.33%.

Question 19

The sales for Year 2 were?

Accepted Answer

A)  $1,200,000. 
B)  $3,200,000. 
C)  $3,000,000. 
D)  $3,333,333. 
A)  $1,200,000. 
B)  $3,200,000. 
C)  $3,000,000. 
D)  $3,333,333.

Question 20

Division A's residual income is?

Accepted Answer

A)  $20,000. 
B)  $30,000. 
C)  $35,000. 
D)  $45,000. 
A)  $20,000. 
B)  $30,000. 
C)  $35,000. 
D)  $45,000.

The balance scorecard approach usually includes all of the following categories of measures except:

Residual income is income plus an imputed interest charge for the investment.

In 2003 the real estate market experienced an all-time high revenue with a net income of $45 billion with investment of $10 billion.What is the ROI for the real estate industry?

Cable Company had the following results for the year just ended: Cable Company's average operating assets during the year were?

Delmar Corporation is considering the use of residual income as a measure of the performance of its divisions.What major disadvantage of this method should the company consider before deciding to institute it?

For the past year,the turnover was?

A key feature of the balanced scorecard performance measurement system is that the different dimensions are linked together.

Turnover is computed by dividing average operating assets into:

Division B's average operating assets are?

The net operating income in Year 1 was?

If the Axle Division sells 15,000 units per year,the residual income should be?

In looking at ROI,turnover measures management's ability to control operating expenses in relation to sales.

The net operating income for Year 1 was?

Support departments within an organization such as information technology,cannot be evaluated as profit centres as they have no external sales revenues.

For purposes of determining the costs to be included in each segment's performance evaluations,in general common fixed costs should be allocated to each segment and traceable fixed costs should not be assigned to segments.

Sales in Year 1 amounted to?

For the past year,the return on investment was?

The sales for Year 2 were?

Division A's residual income is?

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

The balance scorecard approach usually includes all of the following categories of measures except:

Residual income is income plus an imputed interest charge for the investment.

In 2003 the real estate market experienced an all-time high revenue with a net income of $45 billion with investment of $10 billion.What is the ROI for the real estate industry?

Cable Company had the following results for the year just ended: Cable Company's average operating assets during the year were?

Delmar Corporation is considering the use of residual income as a measure of the performance of its divisions.What major disadvantage of this method should the company consider before deciding to institute it?

For the past year,the turnover was?

A key feature of the balanced scorecard performance measurement system is that the different dimensions are linked together.

Turnover is computed by dividing average operating assets into:

Division B's average operating assets are?

The net operating income in Year 1 was?

If the Axle Division sells 15,000 units per year,the residual income should be?

In looking at ROI,turnover measures management's ability to control operating expenses in relation to sales.

The net operating income for Year 1 was?

Support departments within an organization such as information technology,cannot be evaluated as profit centres as they have no external sales revenues.

For purposes of determining the costs to be included in each segment's performance evaluations,in general common fixed costs should be allocated to each segment and traceable fixed costs should not be assigned to segments.

Sales in Year 1 amounted to?

For the past year,the return on investment was?

The sales for Year 2 were?

Division A's residual income is?

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