A) A fixed payment that includes a bonus. B) A fixed payment that includes benefits. C) A benefit that includes a bonus. D) A fixed payment. A) A fixed payment that includes a bonus. B) A fixed payment that includes benefits. C) A benefit that includes a bonus. D) A fixed payment.

The Harrison Bicycle Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $80,000 per year and made capital expenditures in both years of $230,000 per year. The company's stock price in 2018 was $14.20 and $12.50 in 2019. Also in 2019, the industry average earnings multiple for the bicycle industry was 8 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,400,000 shares of outstanding stock at the end of 2019. $\text { Balance Sheet, Dec 31, }$ $\begin{array}{lllll} & 2019 & 2018 \\ \text { Cash } & \$ 267,000 & \$ 100,000 \\ \text { Accounts Receivable } & \$ 525,000 & \$ 400,000 \\ \text { Inventory } & \$ 450,000 & \$ 300,000\\\hline \text { Total Current Assets } & \$ 1,242,000 & \$ 800,000 \\ \text { Long-lived Assets } & 1,205,000 & 1,100,000\\\hline \text { Total Assets }&\$2,447,000&\$1,900,000\\\hline \text { Current Liabilities }&\$500,000&\$500\\ \text { Long-term Debt } & 600,000 & 500,000 \\ \text { Shareholder Equity } & 1,347,000 & 1,100,000\\\hline \text { Total Debt and Equity }&\$2,447,000&\$1,900,000 \end{array}$ $\text { Income Statement, for year ended Dec 31, }$ $\begin{array}{lcc} & 2019 & 2018 \\ \text { Sales } & \$ 6,250,000 & \$ 5,450,000 \\ \text { Cost of Sales } & 5,125,000 & 4,400,000\\\hline \text { Gross Margin } & 1,125,000 & 1,050,000 \\ \text { Operating Expenses } & 580,000 & 550,000\\\hline \text { Operating Income } & 545,000 & 500,000 \\ \text { Taxes } & 218,000 & 200,000\\\hline\text { Net Income }&\$327,000&\$300,000\\\\ \text { Cash Flow from Operations } & 2019 & 2018 \\ \text { Net Income } & \$ 327,000 & \$ 300,000 \\ \text { Plus Depreciation Expense } & 125,000 & 125,000\\ \text { + Decrease (-inc) in AccRec. and Inv. }7(275,000)&-\\ \text { + Increase (-dec) in Cur. Liabl. }&200,000&-\\\hline \text { Cash Flow from Operations }&\$377,000&\$425,000 \end{array}$ \$\quad$ The accounts receivable turnover ratio for 2019 is (rounded):

A) 11.2 B) 13.5 C) 13.7 D) 14.9 A) 11.2 B) 13.5 C) 13.7 D) 14.9

Household Brands Inc. (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In 2011, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2020, comprised of three divisions: cosmetics, household, and consumer electronics. The following information (in thousands of dollars) presents operating revenues, operating income, and invested assets of the company over the last three years: $\begin{array}{lrrr}&\text { Revenue } & \text { Operating Income } & \text { Assets } \\ \text { Cosmetics } & & & \\ 2018 & \$ 24,500 & \$ 2,300 & \$ 10,000 \\ 2019 & 22,500 & 1,900 & 10,000 \\ 2020 & 19,600 & 1,800 & 9,500\\ \text { Household } & & & \\ 2018 & 17,400 & 1,300 & 7,500 \\ 2019 & 15,300 & 1,100 & 8,000 \\ 2020 & 12,500 & 900 & 6,500\\\text { Electronics } & & & \\ 2018 & 13,500 & 1,500 & 4,500 \\ 2019 & 9,500 & 1,100 & 4,500 \\ 2020 & 8,700 & 1,050 & 4,300\\\text { Household Brands Total }\\ 2018 & 55,400 & 5,100 & 22,000 \\ 2019 & 47,300 & 4,100 & 22,500 \\ 2020 & 40,800 & 3,750 & 20,300\\ \end{array}$ The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The pool is calculated as 20% of the annual residual income of the company. The residual income is defined as operating income minus a cost of capital charge of 15% of invested assets. Round all calculations to two significant digits. Asset turnover in the electronics division in 2020 is (rounded):

A) 1.82 B) 2.02 C) .733 D) 2.31 A) 1.82 B) 2.02 C) .733 D) 2.31

The Harrison Bicycle Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $80,000 per year and made capital expenditures in both years of $230,000 per year. The company's stock price in 2018 was $14.20 and $12.50 in 2019. Also in 2019, the industry average earnings multiple for the bicycle industry was 8 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,400,000 shares of outstanding stock at the end of 2019. $\text { Balance Sheet, Dec 31, }$ $\begin{array}{lllll} & 2019 & 2018 \\ \text { Cash } & \$ 267,000 & \$ 100,000 \\ \text { Accounts Receivable } & \$ 525,000 & \$ 400,000 \\ \text { Inventory } & \$ 450,000 & \$ 300,000\\\hline \text { Total Current Assets } & \$ 1,242,000 & \$ 800,000 \\ \text { Long-lived Assets } & 1,205,000 & 1,100,000\\\hline \text { Total Assets }&\$2,447,000&\$1,900,000\\\hline \text { Current Liabilities }&\$500,000&\$500\\ \text { Long-term Debt } & 600,000 & 500,000 \\ \text { Shareholder Equity } & 1,347,000 & 1,100,000\\\hline \text { Total Debt and Equity }&\$2,447,000&\$1,900,000 \end{array}$ $\text { Income Statement, for year ended Dec 31, }$ $\begin{array}{lcc} & 2019 & 2018 \\ \text { Sales } & \$ 6,250,000 & \$ 5,450,000 \\ \text { Cost of Sales } & 5,125,000 & 4,400,000\\\hline \text { Gross Margin } & 1,125,000 & 1,050,000 \\ \text { Operating Expenses } & 580,000 & 550,000\\\hline \text { Operating Income } & 545,000 & 500,000 \\ \text { Taxes } & 218,000 & 200,000\\\hline\text { Net Income }&\$327,000&\$300,000\\\\ \text { Cash Flow from Operations } & 2019 & 2018 \\ \text { Net Income } & \$ 327,000 & \$ 300,000 \\ \text { Plus Depreciation Expense } & 125,000 & 125,000\\ \text { + Decrease (-inc) in AccRec. and Inv. }7(275,000)&-\\ \text { + Increase (-dec) in Cur. Liabl. }&200,000&-\\\hline \text { Cash Flow from Operations }&\$377,000&\$425,000 \end{array}$ Return on assets for 2019 is (rounded):

A) 9.1% B) 15.0% C) 16.7% D) 17.9% A) 9.1% B) 15.0% C) 16.7% D) 17.9%

The Harrison Bicycle Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $80,000 per year and made capital expenditures in both years of $230,000 per year. The company's stock price in 2018 was $14.20 and $12.50 in 2019. Also in 2019, the industry average earnings multiple for the bicycle industry was 8 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,400,000 shares of outstanding stock at the end of 2019. $\text { Balance Sheet, Dec 31, }$ $\begin{array}{lllll} & 2019 & 2018 \\ \text { Cash } & \$ 267,000 & \$ 100,000 \\ \text { Accounts Receivable } & \$ 525,000 & \$ 400,000 \\ \text { Inventory } & \$ 450,000 & \$ 300,000\\\hline \text { Total Current Assets } & \$ 1,242,000 & \$ 800,000 \\ \text { Long-lived Assets } & 1,205,000 & 1,100,000\\\hline \text { Total Assets }&\$2,447,000&\$1,900,000\\\hline \text { Current Liabilities }&\$500,000&\$500\\ \text { Long-term Debt } & 600,000 & 500,000 \\ \text { Shareholder Equity } & 1,347,000 & 1,100,000\\\hline \text { Total Debt and Equity }&\$2,447,000&\$1,900,000 \end{array}$ $\text { Income Statement, for year ended Dec 31, }$ $\begin{array}{lcc} & 2019 & 2018 \\ \text { Sales } & \$ 6,250,000 & \$ 5,450,000 \\ \text { Cost of Sales } & 5,125,000 & 4,400,000\\\hline \text { Gross Margin } & 1,125,000 & 1,050,000 \\ \text { Operating Expenses } & 580,000 & 550,000\\\hline \text { Operating Income } & 545,000 & 500,000 \\ \text { Taxes } & 218,000 & 200,000\\\hline\text { Net Income }&\$327,000&\$300,000\\\\ \text { Cash Flow from Operations } & 2019 & 2018 \\ \text { Net Income } & \$ 327,000 & \$ 300,000 \\ \text { Plus Depreciation Expense } & 125,000 & 125,000\\ \text { + Decrease (-inc) in AccRec. and Inv. }7(275,000)&-\\ \text { + Increase (-dec) in Cur. Liabl. }&200,000&-\\\hline \text { Cash Flow from Operations }&\$377,000&\$425,000 \end{array}$ \$\quad$ The current ratio for 2019is:

A) 1.8 B) 2.5 C) 3.6 D) 4.1 A) 1.8 B) 2.5 C) 3.6 D) 4.1

The King Mattress Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2018 was $8 and $7 in 2019. The industry average earnings multiple for the mattress industry was 9 in 2019 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2019. $\text { Balance Sheet, Dec 31, }$ $\begin{array}{lllll} & 2019 & 2018 \\ \text { Cash } & \$ 340,000 & \$ 100,000 \\ \text { Accounts Receivable } & \$ 350,000 & \$ 400,000 \\ \text { Inventory } & \$ 250,000 & \$ 300,000 \\ \hline\text { Total Current Assets }&\$940,000&\$800,000\\ \text { Long-lived Assets }&1,080,000&1,100,000\\ \hline\text { Total Assets }&\$2,020,000&\$1,900,000\\ \hline \text { Current Liabilities }&\$200,000&\$300,000\\ \text { Long-term Debt } & 600,000 & 500,000 \\ \text { Shareholder Equity } & 1,220,000 & 1,100,000\\\hline\text { Total Debt and Equity }&\$2,020,000&\$1,900,000 \end{array}$ $\text { Income Statement, for year ended Dec } 31 \text {, }$ $\begin{array}{lcc} & 2019 & 2018 \\ \text { Sales } & \$ 4,750,000 & \$ 4,500,000 \\ \text { Cost of Sales } & 4,100,000 & 4,000,000\\\hline \text { Gross Margin } & 650,000 & 500,000 \\ \text { Operating Expenses } & 350,000 & 400,000 \\ \hline\text { Operating Income } & 300,000 & 100,000 \\ \text { Taxes } & 120,000 & 40,000\\\hline \text { Net Income }&\$180,000&\$60,000\\\\\text { Cash Flow from Operations } & 2019 & 2018 \\ \text { Net Income } & \$ 180,000 & \$ 60.000\\\text { Plus Depreciation Expense } & 50,000 & 50,000 \\ \text { + Decrease (-inc) in AccRec. and Inv. } & 100,000&-\\\text { + Increase (-dec) in Cur. Liabl. }&(100,000)&-\\ \text { Cash Flow from Operations }&\$230,000&\$110,000 \end{array}$ $\quad$ The inventory turnover ratio for 2019 is (rounded):

A) 11.2 B) 12.7 C) 13.7 D) 14.9 A) 11.2 B) 12.7 C) 13.7 D) 14.9

Household Brands Inc. (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In 2011, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2020, comprised of three divisions: cosmetics, household, and consumer electronics. The following information (in thousands of dollars) presents operating revenues, operating income, and invested assets of the company over the last three years: $\begin{array}{lrrr}&\text { Revenue } & \text { Operating Income } & \text { Assets } \\ \text { Cosmetics } & & & \\ 2018 & \$ 24,500 & \$ 2,300 & \$ 10,000 \\ 2019 & 22,500 & 1,900 & 10,000 \\ 2020 & 19,600 & 1,800 & 9,500\\ \text { Household } & & & \\ 2018 & 17,400 & 1,300 & 7,500 \\ 2019 & 15,300 & 1,100 & 8,000 \\ 2020 & 12,500 & 900 & 6,500\\\text { Electronics } & & & \\ 2018 & 13,500 & 1,500 & 4,500 \\ 2019 & 9,500 & 1,100 & 4,500 \\ 2020 & 8,700 & 1,050 & 4,300\\\text { Household Brands Total }\\ 2018 & 55,400 & 5,100 & 22,000 \\ 2019 & 47,300 & 4,100 & 22,500 \\ 2020 & 40,800 & 3,750 & 20,300\\ \end{array}$ The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The pool is calculated as 20% of the annual residual income of the company. The residual income is defined as operating income minus a cost of capital charge of 15% of invested assets. Round all calculations to two significant digits. The total amount of the bonus pool for 2019 is:

A) $145,000. B) $218,000. C) $141,000. D) $174,000. E) $360,000. A) $145,000. B) $218,000. C) $141,000. D) $174,000. E) $360,000.

Exam 20: Management Compensation, Business Analysis, and Business Valuation

Bonus plans should be tied to variable cost income, which is less subject to manipulation because is not affected by inventory level changes, rather than the conventional:

(Multiple Choice)

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Question 81

Salary is:

(Multiple Choice)

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(86)

Question 82

A method for determining a bonus based upon the performance of the firm is a(n):

(Multiple Choice)

5.0/5

(86)

Question 83

In management compensation, the use of the balanced scorecard achieves:

(Multiple Choice)

4.9/5

(75)

Question 84

The Harrison Bicycle Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $80,000 per year and made capital expenditures in both years of $230,000 per year. The company's stock price in 2018 was $14.20 and $12.50 in 2019. Also in 2019, the industry average earnings multiple for the bicycle industry was 8 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,400,000 shares of outstanding stock at the end of 2019. $\text { Balance Sheet, Dec 31, }$ 2019 2018 Cash \ 267,000 \ 100,000 Accounts Receivable \ 525,000 \ 400,000 Inventory \ 450,000 \ 300,000 Total Current Assets \ 1,242,000 \ 800,000 Long-lived Assets 1,205,000 1,100,000 Total Assets \2 ,447,000 \1 ,900,000 Current Liabilities \5 00,000 \5 00 Long-term Debt 600,000 500,000 Shareholder Equity 1,347,000 1,100,000 Total Debt and Equity \2 ,447,000 \1 ,900,000 $\text { Income Statement, for year ended Dec 31, }$ 2019 2018 Sales \ 6,250,000 \ 5,450,000 Cost of Sales 5,125,000 4,400,000 Gross Margin 1,125,000 1,050,000 Operating Expenses 580,000 550,000 Operating Income 545,000 500,000 Taxes 218,000 200,000 Net Income \3 27,000 \3 00,000 Cash Flow from Operations 2019 2018 Net Income \ 327,000 \ 300,000 Plus Depreciation Expense 125,000 125,000 + Decrease (-inc) in AccRec. and Inv. 7(275,000) - + Increase (-dec) in Cur. Liabl. 200,000 - Cash Flow from Operations \3 77,000 \4 25,000 \ $\quad$ The accounts receivable turnover ratio for 2019 is (rounded):

(Multiple Choice)

4.9/5

(73)

Question 85

Household Brands Inc. (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In 2011, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2020, comprised of three divisions: cosmetics, household, and consumer electronics. The following information (in thousands of dollars) presents operating revenues, operating income, and invested assets of the company over the last three years: Revenue Operating Income Assets Cosmetics 2018 \ 24,500 \ 2,300 \ 10,000 2019 22,500 1,900 10,000 2020 19,600 1,800 9,500 Household 2018 17,400 1,300 7,500 2019 15,300 1,100 8,000 2020 12,500 900 6,500 Electronics 2018 13,500 1,500 4,500 2019 9,500 1,100 4,500 2020 8,700 1,050 4,300 Household Brands Total 2018 55,400 5,100 22,000 2019 47,300 4,100 22,500 2020 40,800 3,750 20,300 The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The pool is calculated as 20% of the annual residual income of the company. The residual income is defined as operating income minus a cost of capital charge of 15% of invested assets. Round all calculations to two significant digits. Asset turnover in the electronics division in 2020 is (rounded):

(Multiple Choice)

5.0/5

(86)

Question 86

The Harrison Bicycle Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $80,000 per year and made capital expenditures in both years of $230,000 per year. The company's stock price in 2018 was $14.20 and $12.50 in 2019. Also in 2019, the industry average earnings multiple for the bicycle industry was 8 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,400,000 shares of outstanding stock at the end of 2019. $\text { Balance Sheet, Dec 31, }$ 2019 2018 Cash \ 267,000 \ 100,000 Accounts Receivable \ 525,000 \ 400,000 Inventory \ 450,000 \ 300,000 Total Current Assets \ 1,242,000 \ 800,000 Long-lived Assets 1,205,000 1,100,000 Total Assets \2 ,447,000 \1 ,900,000 Current Liabilities \5 00,000 \5 00 Long-term Debt 600,000 500,000 Shareholder Equity 1,347,000 1,100,000 Total Debt and Equity \2 ,447,000 \1 ,900,000 $\text { Income Statement, for year ended Dec 31, }$ 2019 2018 Sales \ 6,250,000 \ 5,450,000 Cost of Sales 5,125,000 4,400,000 Gross Margin 1,125,000 1,050,000 Operating Expenses 580,000 550,000 Operating Income 545,000 500,000 Taxes 218,000 200,000 Net Income \3 27,000 \3 00,000 Cash Flow from Operations 2019 2018 Net Income \ 327,000 \ 300,000 Plus Depreciation Expense 125,000 125,000 + Decrease (-inc) in AccRec. and Inv. 7(275,000) - + Increase (-dec) in Cur. Liabl. 200,000 - Cash Flow from Operations \3 77,000 \4 25,000 Return on assets for 2019 is (rounded):

(Multiple Choice)

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Question 87

Which of the following is a liquidity ratio?

(Multiple Choice)

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Question 88

Economic value added is a business unit's income after taxes and after deducting the _________.

(Multiple Choice)

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(80)

Question 89

The Harrison Bicycle Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $80,000 per year and made capital expenditures in both years of $230,000 per year. The company's stock price in 2018 was $14.20 and $12.50 in 2019. Also in 2019, the industry average earnings multiple for the bicycle industry was 8 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,400,000 shares of outstanding stock at the end of 2019. $\text { Balance Sheet, Dec 31, }$ 2019 2018 Cash \ 267,000 \ 100,000 Accounts Receivable \ 525,000 \ 400,000 Inventory \ 450,000 \ 300,000 Total Current Assets \ 1,242,000 \ 800,000 Long-lived Assets 1,205,000 1,100,000 Total Assets \2 ,447,000 \1 ,900,000 Current Liabilities \5 00,000 \5 00 Long-term Debt 600,000 500,000 Shareholder Equity 1,347,000 1,100,000 Total Debt and Equity \2 ,447,000 \1 ,900,000 $\text { Income Statement, for year ended Dec 31, }$ 2019 2018 Sales \ 6,250,000 \ 5,450,000 Cost of Sales 5,125,000 4,400,000 Gross Margin 1,125,000 1,050,000 Operating Expenses 580,000 550,000 Operating Income 545,000 500,000 Taxes 218,000 200,000 Net Income \3 27,000 \3 00,000 Cash Flow from Operations 2019 2018 Net Income \ 327,000 \ 300,000 Plus Depreciation Expense 125,000 125,000 + Decrease (-inc) in AccRec. and Inv. 7(275,000) - + Increase (-dec) in Cur. Liabl. 200,000 - Cash Flow from Operations \3 77,000 \4 25,000 \ $\quad$ The current ratio for 2019is:

(Multiple Choice)

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(88)

Question 90

The King Mattress Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2018 was $8 and $7 in 2019. The industry average earnings multiple for the mattress industry was 9 in 2019 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2019. $\text { Balance Sheet, Dec 31, }$ 2019 2018 Cash \ 340,000 \ 100,000 Accounts Receivable \ 350,000 \ 400,000 Inventory \ 250,000 \ 300,000 Total Current Assets \9 40,000 \8 00,000 Long-lived Assets 1,080,000 1,100,000 Total Assets \2 ,020,000 \1 ,900,000 Current Liabilities \2 00,000 \3 00,000 Long-term Debt 600,000 500,000 Shareholder Equity 1,220,000 1,100,000 Total Debt and Equity \2 ,020,000 \1 ,900,000 $\text { Income Statement, for year ended Dec } 31 \text {, }$ 2019 2018 Sales \ 4,750,000 \ 4,500,000 Cost of Sales 4,100,000 4,000,000 Gross Margin 650,000 500,000 Operating Expenses 350,000 400,000 Operating Income 300,000 100,000 Taxes 120,000 40,000 Net Income \1 80,000 \6 0,000 Cash Flow from Operations 2019 2018 Net Income \ 180,000 \ 60.000 Plus Depreciation Expense 50,000 50,000 + Decrease (-inc) in AccRec. and Inv. 100,000 - + Increase (-dec) in Cur. Liabl. (100,000) - Cash Flow from Operations \2 30,000 \1 10,000 $\quad$ The inventory turnover ratio for 2019 is (rounded):

(Multiple Choice)

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(78)

Question 91

When strategic performance measures or critical success factors are used to determine bonus compensation, the bonus will usually depend either on the amount of improvement in the measure or on:

(Multiple Choice)

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Question 92

What is the tax effect on the firm of a compensation plan deferred bonus?

(Multiple Choice)

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(76)

Question 93

There is a current tax for the manager when which of the following types of compensation is received?

(Multiple Choice)

4.9/5

(93)

Question 94

Household Brands Inc. (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In 2011, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2020, comprised of three divisions: cosmetics, household, and consumer electronics. The following information (in thousands of dollars) presents operating revenues, operating income, and invested assets of the company over the last three years: Revenue Operating Income Assets Cosmetics 2018 \ 24,500 \ 2,300 \ 10,000 2019 22,500 1,900 10,000 2020 19,600 1,800 9,500 Household 2018 17,400 1,300 7,500 2019 15,300 1,100 8,000 2020 12,500 900 6,500 Electronics 2018 13,500 1,500 4,500 2019 9,500 1,100 4,500 2020 8,700 1,050 4,300 Household Brands Total 2018 55,400 5,100 22,000 2019 47,300 4,100 22,500 2020 40,800 3,750 20,300 The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The pool is calculated as 20% of the annual residual income of the company. The residual income is defined as operating income minus a cost of capital charge of 15% of invested assets. Round all calculations to two significant digits. The total amount of the bonus pool for 2019 is:

(Multiple Choice)

4.9/5

(97)

Question 95

Which one of the following items is not a measure of a company's liquidity?

(Multiple Choice)

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Question 96

Which of the following would explain why a manager would elect to defer bonus compensation to future years?

(Multiple Choice)

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(85)

Question 97

Market value of equity is an objective measure which clearly shows what:

(Multiple Choice)

5.0/5

(88)

Question 98

There is a current tax deduction for the firm for which of the following types of compensation?

(Multiple Choice)

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(96)

Question 99

The balanced scorecard critical success factors (CSFs) provide strong motivation in bonus compensation plans if noncontrollable factors are:

(Multiple Choice)

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(82)

Question 100

Bonus plans should be tied to variable cost income, which is less subject to manipulation because is not affected by inventory level changes, rather than the conventional:

Salary is:

A method for determining a bonus based upon the performance of the firm is a(n):

In management compensation, the use of the balanced scorecard achieves:

Which of the following is a liquidity ratio?

Economic value added is a business unit's income after taxes and after deducting the _________.

When strategic performance measures or critical success factors are used to determine bonus compensation, the bonus will usually depend either on the amount of improvement in the measure or on:

What is the tax effect on the firm of a compensation plan deferred bonus?

There is a current tax for the manager when which of the following types of compensation is received?

Which one of the following items is not a measure of a company's liquidity?

Which of the following would explain why a manager would elect to defer bonus compensation to future years?

Market value of equity is an objective measure which clearly shows what:

There is a current tax deduction for the firm for which of the following types of compensation?

The balanced scorecard critical success factors (CSFs) provide strong motivation in bonus compensation plans if noncontrollable factors are:

Cost Management and Strategy

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

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