Question 1

The following information is given for the Wheat and Barley Divisions of Agriculture Corporation.

Accepted Answer

The answer of The following information is given for the...

Question 2

The objectives identified in an organization's values statement must be objective in nature.

Accepted Answer

A) True 
 B)False

Question 3

A sub-unit of an organization is evaluated on the basis of its ROI.If this sub-unit's sales and expenses both increase by $30,000,how will the following measures be affected?

Accepted Answer

A) increase increase increase 
B) indeterminate increase decrease 
C) no change increase decrease 
D) no change decrease no change 
A) increase increase increase 
B) indeterminate increase decrease 
C) no change increase decrease 
D) no change decrease no change

Question 4

The return on investment (ROI)ratio measures

Accepted Answer

A) only asset turnover. 
B) only earnings as a percent of sales. 
C) both asset turnover and earnings as a percent of sales. 
D) asset turnover and earnings as a percent of sales,correcting for the effects of differing depreciation methods. 
A) only asset turnover. 
B) only earnings as a percent of sales. 
C) both asset turnover and earnings as a percent of sales. 
D) asset turnover and earnings as a percent of sales,correcting for the effects of differing depreciation methods.

Question 5

Identify the steps to follow in establishing the performance reward system for a company.

Accepted Answer

The steps

Question 6

When assessing performance,one way to compensate for differences among divisions of a multinational organization would be for the parent company to

Accepted Answer

A) use different target rates of return to compute residual incomes. 
B) modify the return on investment calculation so that foreign currency fluctuations are removed from all financial statement figures. 
C) classify all domestic divisions as investment centers and all foreign divisions as profit centers. 
D) use financial performance measures for units whose records are kept in the domestic currency and non-financial measures for units whose records are kept in a foreign currency. 
A) use different target rates of return to compute residual incomes. 
B) modify the return on investment calculation so that foreign currency fluctuations are removed from all financial statement figures. 
C) classify all domestic divisions as investment centers and all foreign divisions as profit centers. 
D) use financial performance measures for units whose records are kept in the domestic currency and non-financial measures for units whose records are kept in a foreign currency.

Question 7

In order to assure achievement of an organizational goal,performance measures must be established for that goal.

Accepted Answer

A) True 
 B)False

Question 8

Profit margin indicates the portion of sales that

Accepted Answer

A) covers fixed expenses. 
B) is not used to cover expenses. 
C) equals contribution margin. 
D) equals product contribution margin. 
A) covers fixed expenses. 
B) is not used to cover expenses. 
C) equals contribution margin. 
D) equals product contribution margin.

Question 9

Non-financial performance measures (NFPMs)are better than financial measures in that NFPMs

Accepted Answer

A) provide a better indication of customer satisfaction. 
B) may better predict the direction of future cash flows. 
C) directly measure how well an organization does those things that create shareholder value. 
D) all of the above 
A) provide a better indication of customer satisfaction. 
B) may better predict the direction of future cash flows. 
C) directly measure how well an organization does those things that create shareholder value. 
D) all of the above

Question 10

External performance measures focus on the efficiency and effectiveness of an organization's production process.

Accepted Answer

A) True 
 B)False

Question 11

Expatriate workers should receive a compensation package that reflects cost of living factors and currency fluctuations.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following responsibility centers may be evaluated on the basis of residual income?

Accepted Answer

A) investment center 
B) revenue center 
C) profit center 
D) cost center 
A) investment center 
B) revenue center 
C) profit center 
D) cost center

The following information is given for the Wheat and Barley Divisions of Agriculture Corporation.

The objectives identified in an organization's values statement must be objective in nature.

A sub-unit of an organization is evaluated on the basis of its ROI.If this sub-unit's sales and expenses both increase by $30,000,how will the following measures be affected?

The return on investment (ROI)ratio measures

Identify the steps to follow in establishing the performance reward system for a company.

When assessing performance,one way to compensate for differences among divisions of a multinational organization would be for the parent company to

In order to assure achievement of an organizational goal,performance measures must be established for that goal.

Profit margin indicates the portion of sales that

Non-financial performance measures (NFPMs)are better than financial measures in that NFPMs

External performance measures focus on the efficiency and effectiveness of an organization's production process.

Expatriate workers should receive a compensation package that reflects cost of living factors and currency fluctuations.

Which of the following responsibility centers may be evaluated on the basis of residual income?

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 14: Performance Measurement, balanced Scorecards, and Performance Rewards

The following information is given for the Wheat and Barley Divisions of Agriculture Corporation.

The objectives identified in an organization's values statement must be objective in nature.

A sub-unit of an organization is evaluated on the basis of its ROI.If this sub-unit's sales and expenses both increase by $30,000,how will the following measures be affected?

The return on investment (ROI)ratio measures

Identify the steps to follow in establishing the performance reward system for a company.

When assessing performance,one way to compensate for differences among divisions of a multinational organization would be for the parent company to

In order to assure achievement of an organizational goal,performance measures must be established for that goal.

Profit margin indicates the portion of sales that

Non-financial performance measures (NFPMs)are better than financial measures in that NFPMs

External performance measures focus on the efficiency and effectiveness of an organization's production process.

Expatriate workers should receive a compensation package that reflects cost of living factors and currency fluctuations.

Which of the following responsibility centers may be evaluated on the basis of residual income?

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters