Question 1

For the past year, the margin used in ROI calculations was:

Accepted Answer

A) 6.00% 
B) 8.67% 
C) 10.00% 
D) 8.00% 
A) 6.00% 
B) 8.67% 
C) 10.00% 
D) 8.00%

Question 2

Gabbe Industries is a division of a major corporation.Last year the division had total sales of $8,910,000, net operating income of $962,280, and average operating assets of $3,000,000.The company's minimum required rate of return is 10%.
Required:
a.What is the division's margin?
b.What is the division's turnover?
c.What is the division's return on investment (ROI)?

Accepted Answer

a.Margin = Net operating income ÷ Sales

Question 3

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined margin for the entire company will be closest to:

Accepted Answer

A) 4.9% 
B) 4.3% 
C) 0.9% 
D) 3.5% 
A) 4.9% 
B) 4.3% 
C) 0.9% 
D) 3.5%

Question 4

Financial measures tend to be lag indicators that report on the results of past actions.

Accepted Answer

A) True 
 B)False

Question 5

The manufacturing cycle efficiency (MCE)was closest to:

Accepted Answer

A) 0.89 
B) 0.06 
C) 0.29 
D) 0.12 
A) 0.89 
B) 0.06 
C) 0.29 
D) 0.12

Question 6

When used in return on investment (ROI)calculations, turnover equals sales divided by average operating assets.

Accepted Answer

A) True 
 B)False

Question 7

If the balanced scorecard is correctly constructed, the performance measures should be independent of each other so that bad performance on one measure will not result in bad performance on another performance measure.

Accepted Answer

A) True 
 B)False

Question 8

Wiswell Inc.reported the following results from last year's operations:   The average operating assets were $8,000,000.

At the beginning of this year, the company has a $900,000 investment opportunity that would involve sales of $2,070,000, a contribution margin ratio of 30% of sales, and fixed expenses of $538,200.The company's minimum required rate of return is 10%.If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:

Accepted Answer

A) $104,800 
B) $925,600 
C) ($19,800) 
D) $994,800 
A) $104,800 
B) $925,600 
C) ($19,800) 
D) $994,800

Question 9

The division's return on investment (ROI)is closest to:

Accepted Answer

A) 135.5% 
B) 6.1% 
C) 32.1% 
D) 2.4% 
A) 135.5% 
B) 6.1% 
C) 32.1% 
D) 2.4%

Question 10

For the past year, the return on investment was:

Accepted Answer

A) 6% 
B) 30% 
C) 18% 
D) 26% 
A) 6% 
B) 30% 
C) 18% 
D) 26%

Question 11

Worley Inc.reported the following results from last year's operations:   At the beginning of this year, the company has a $1,000,000 investment opportunity with the following characteristics:   The company's minimum required rate of return is 17%.
Required:
1.What was last year's residual income?
2.If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall residual income this year?
3.If Westerville's CEO earns a bonus only if residual income for this year exceeds residual income for last year, would the CEO pursue the investment opportunity?

Accepted Answer

1.Last year's residual income was: @#IMG-DLM&_TB26

Question 12

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined turnover for the entire company will be closest to:

Accepted Answer

A) 12.83 
B) 2.65 
C) 1.90 
D) 3.34 
A) 12.83 
B) 2.65 
C) 1.90 
D) 3.34

Question 13

Pinkton Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below:   The delivery cycle time was:

Accepted Answer

A) 8.7 hours 
B) 3.6 hours 
C) 22.0 hours 
D) 22.7 hours 
A) 8.7 hours 
B) 3.6 hours 
C) 22.0 hours 
D) 22.7 hours

Question 14

Leete Inc.reported the following results from last year's operations:   Last year's margin was closest to:

Accepted Answer

A) 79.0% 
B) 31.0% 
C) 20.0% 
D) 10.0% 
A) 79.0% 
B) 31.0% 
C) 20.0% 
D) 10.0%

Question 15

The margin for the investment opportunity is closest to:

Accepted Answer

A) 40.0% 
B) 33.0% 
C) 67.0% 
D) 7.0% 
A) 40.0% 
B) 33.0% 
C) 67.0% 
D) 7.0%

Question 16

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined ROI for the entire company will be closest to:

Accepted Answer

A) 3.9% 
B) 24.0% 
C) 14.5% 
D) 18.5% 
A) 3.9% 
B) 24.0% 
C) 14.5% 
D) 18.5%

Question 17

The performance measures on a balanced scorecard tend to fall into four groups: financial measures, customer measures, internal business process measures, and learning and growth measures.

Accepted Answer

A) True 
 B)False

Question 18

For the past year, the minimum required rate of return was:

Accepted Answer

A) 30% 
B) 12% 
C) 15% 
D) 6% 
A) 30% 
B) 12% 
C) 15% 
D) 6%

Question 19

Hunt Company has the following production data:   The manufacturing cycle efficiency (MCE)for Hunt Company is:

Accepted Answer

A) 50% 
B) 25% 
C) 20% 
D) 75% 
A) 50% 
B) 25% 
C) 20% 
D) 75%

Question 20

Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).

Accepted Answer

A) True 
 B)False

For the past year, the margin used in ROI calculations was:

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined margin for the entire company will be closest to:

Financial measures tend to be lag indicators that report on the results of past actions.

The manufacturing cycle efficiency (MCE)was closest to:

When used in return on investment (ROI)calculations, turnover equals sales divided by average operating assets.

If the balanced scorecard is correctly constructed, the performance measures should be independent of each other so that bad performance on one measure will not result in bad performance on another performance measure.

The division's return on investment (ROI)is closest to:

For the past year, the return on investment was:

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined turnover for the entire company will be closest to:

Pinkton Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below: The delivery cycle time was:

Leete Inc.reported the following results from last year's operations: Last year's margin was closest to:

The margin for the investment opportunity is closest to:

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined ROI for the entire company will be closest to:

The performance measures on a balanced scorecard tend to fall into four groups: financial measures, customer measures, internal business process measures, and learning and growth measures.

For the past year, the minimum required rate of return was:

Hunt Company has the following production data: The manufacturing cycle efficiency (MCE)for Hunt Company is:

Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters

Exam 10: Performance Measurement in Decentralized Organizations

For the past year, the margin used in ROI calculations was:

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined margin for the entire company will be closest to:

Financial measures tend to be lag indicators that report on the results of past actions.

The manufacturing cycle efficiency (MCE)was closest to:

When used in return on investment (ROI)calculations, turnover equals sales divided by average operating assets.

If the balanced scorecard is correctly constructed, the performance measures should be independent of each other so that bad performance on one measure will not result in bad performance on another performance measure.

The division's return on investment (ROI)is closest to:

For the past year, the return on investment was:

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined turnover for the entire company will be closest to:

Pinkton Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below: The delivery cycle time was:

Leete Inc.reported the following results from last year's operations: Last year's margin was closest to:

The margin for the investment opportunity is closest to:

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined ROI for the entire company will be closest to:

The performance measures on a balanced scorecard tend to fall into four groups: financial measures, customer measures, internal business process measures, and learning and growth measures.

For the past year, the minimum required rate of return was:

Hunt Company has the following production data: The manufacturing cycle efficiency (MCE)for Hunt Company is:

Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters