Question 1

The ratio of sales to assets is referred to as ______________________________.

Accepted Answer

The answer of The ratio of sales to assets is...

Question 2

Answer the following questions regarding economic value added (EVA):

Accepted Answer

The answer of Answer the following questions regarding economic value...

Question 3

Residual income is an example of a ____ performance measurement.

Accepted Answer

A) long-term 
B) short-term 
C) qualitative 
D) profit center 
A) long-term 
B) short-term 
C) qualitative 
D) profit center

Question 4

An organization typically develops a values statement before developing a mission statement.

Accepted Answer

A) True 
 B)False

Question 5

Non-financial measures are generally less timely than are financial performance measures.

Accepted Answer

A) True 
 B)False

Question 6

Houston Company Freeport Division of the Houston Company has the following statistics for its most recent operations:
  Refer to Houston Company.If Houston Company evaluates its managers on the basis of return on investment,the manager of Freeport Division would invest in a project costing $100,000 only if it increased net segment income by at least

Accepted Answer

A) $10,000. 
B) $15,000. 
C) $20,000. 
D) $25,000. 
A) $10,000. 
B) $15,000. 
C) $20,000. 
D) $25,000.

Question 7

On a balanced scorecard,which of the following would be most appropriate to measure innovation:

Accepted Answer

A) Rapid time-to-market of new products 
B) Corporate financial profits 
C) On-time delivery 
D) Manufacturing cycle efficiency 
A) Rapid time-to-market of new products 
B) Corporate financial profits 
C) On-time delivery 
D) Manufacturing cycle efficiency

Question 8

The manager of the St.Louis Division of Mississippi River Tours is preparing the budget for the upcoming year.At this point,he has determined that average total assets for the upcoming year will equal $4,000,000.The manager is evaluated on the amount of residual income generated by the division.Assume variable costs in the St.Louis Division are expected to equal 60% of total sales and fixed costs are expected to equal $400,000.

Accepted Answer

a.The required net income = 20% ´ $4,000

Question 9

Lawton Company Lawton Company is a manufacturer of electronic components.The following manufacturing information is available for the month of May:
  Refer to Lawton Company.What is the process quality yield?

Accepted Answer

A) 50% 
B) 75% 
C) 80% 
D) 125% 
A) 50% 
B) 75% 
C) 80% 
D) 125%

Question 10

In a pay-for-performance plan,defined performance measures must be highly correlated with an organization's operational targets.

Accepted Answer

A) True 
 B)False

Question 11

Economic value added (EVA)is focused on short-term performance measurement.

Accepted Answer

A) True 
 B)False

Question 12

The balanced scorecard approach complements measures of past performance with measures of the drivers of future performance.

Accepted Answer

A) True 
 B)False

Question 13

The traditional compensation package provides

Accepted Answer

A) fixed monthly or weekly salaries plus performance bonuses. 
B) the same salary structure for all groups of employees. 
C) no incentive for non-top management to improve performance. 
D) no need to include incentive compensation. 
A) fixed monthly or weekly salaries plus performance bonuses. 
B) the same salary structure for all groups of employees. 
C) no incentive for non-top management to improve performance. 
D) no need to include incentive compensation.

Question 14

Which of the following statements about an organization's mission statement is true?

Accepted Answer

A) The mission statement should express an organization's purpose. 
B) The mission statement should identify how an organization will meet the needs of its targeted customers. 
C) The mission statement must be communicated throughout the organization. 
D) All of the statements are true. 
A) The mission statement should express an organization's purpose. 
B) The mission statement should identify how an organization will meet the needs of its targeted customers. 
C) The mission statement must be communicated throughout the organization. 
D) All of the statements are true.

Question 15

A company has set a target rate of return of 16% for its investment center.An investment center manager in this company would

Accepted Answer

A) acquire assets that would increase divisional income by more than 16%. 
B) sell all assets that do not generate divisional income of more than 16%. 
C) acquire assets that would increase sales by more than 16%. 
D) acquire any technologically advanced assets that would cause costs to be reduced by 16% or more. 
A) acquire assets that would increase divisional income by more than 16%. 
B) sell all assets that do not generate divisional income of more than 16%. 
C) acquire assets that would increase sales by more than 16%. 
D) acquire any technologically advanced assets that would cause costs to be reduced by 16% or more.

Question 16

Which performance plan best promotes quality of the product or service?

Accepted Answer

A) piece rate 
B) health insurance 
C) pensions 
D) profit sharing 
A) piece rate 
B) health insurance 
C) pensions 
D) profit sharing

Question 17

Broncho Sports Enterprises The Football Division of Broncho Sports Enterprises reported the following financial data for the year:
  Refer to Broncho Sports Enterprises.If expenses increased by $15,000 in the Football Division,

Accepted Answer

A) return on investment would decrease. 
B) residual income would increase. 
C) the target rate of return would decrease. 
D) asset turnover would decrease. 
A) return on investment would decrease. 
B) residual income would increase. 
C) the target rate of return would decrease. 
D) asset turnover would decrease.

Question 18

Objectives for a pay plan

Accepted Answer

A) are not needed in a performance-based plan. 
B) must be stated for a performance-based plan to work. 
C) are essential for a periodic compensation plan to be successful. 
D) are unnecessary for a merit pay plan. 
A) are not needed in a performance-based plan. 
B) must be stated for a performance-based plan to work. 
C) are essential for a periodic compensation plan to be successful. 
D) are unnecessary for a merit pay plan.

Question 19

Economic value added (EVA)is a more appropriate performance measure when there is a large difference between the market value of invested capital and the book value of assets.

Accepted Answer

A) True 
 B)False

Question 20

Arkansas Company Arkansas Co.has established a target rate of return of 16% for all divisions.For the most recent year,Little Rock Division generated sales of $10,000,000 and expenses of $7,500,000.Total assets at the beginning of the year were $5,000,000 and total assets at the end of the year were $7,000,000.
Refer to Arkansas Company.In the most recent year,what was Little Rock Division's residual income?

Accepted Answer

A) $ 960,000 
B) $1,380,000 
C) $1,540,000 
D) $1,700,000 
A) $ 960,000 
B) $1,380,000 
C) $1,540,000 
D) $1,700,000

The ratio of sales to assets is referred to as ______________________________.

Answer the following questions regarding economic value added (EVA):

Residual income is an example of a ____ performance measurement.

An organization typically develops a values statement before developing a mission statement.

Non-financial measures are generally less timely than are financial performance measures.

On a balanced scorecard,which of the following would be most appropriate to measure innovation:

Lawton Company Lawton Company is a manufacturer of electronic components.The following manufacturing information is available for the month of May: Refer to Lawton Company.What is the process quality yield?

In a pay-for-performance plan,defined performance measures must be highly correlated with an organization's operational targets.

Economic value added (EVA)is focused on short-term performance measurement.

The balanced scorecard approach complements measures of past performance with measures of the drivers of future performance.

The traditional compensation package provides

Which of the following statements about an organization's mission statement is true?

A company has set a target rate of return of 16% for its investment center.An investment center manager in this company would

Which performance plan best promotes quality of the product or service?

Broncho Sports Enterprises The Football Division of Broncho Sports Enterprises reported the following financial data for the year: Refer to Broncho Sports Enterprises.If expenses increased by $15,000 in the Football Division,

Objectives for a pay plan

Economic value added (EVA)is a more appropriate performance measure when there is a large difference between the market value of invested capital and the book value of assets.

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 ratio of sales to assets is referred to as ______________________________.

Answer the following questions regarding economic value added (EVA):

Residual income is an example of a ____ performance measurement.

An organization typically develops a values statement before developing a mission statement.

Non-financial measures are generally less timely than are financial performance measures.

On a balanced scorecard,which of the following would be most appropriate to measure innovation:

Lawton Company Lawton Company is a manufacturer of electronic components.The following manufacturing information is available for the month of May: Refer to Lawton Company.What is the process quality yield?

In a pay-for-performance plan,defined performance measures must be highly correlated with an organization's operational targets.

Economic value added (EVA)is focused on short-term performance measurement.

The balanced scorecard approach complements measures of past performance with measures of the drivers of future performance.

The traditional compensation package provides

Which of the following statements about an organization's mission statement is true?

A company has set a target rate of return of 16% for its investment center.An investment center manager in this company would

Which performance plan best promotes quality of the product or service?

Broncho Sports Enterprises The Football Division of Broncho Sports Enterprises reported the following financial data for the year: Refer to Broncho Sports Enterprises.If expenses increased by $15,000 in the Football Division,

Objectives for a pay plan

Economic value added (EVA)is a more appropriate performance measure when there is a large difference between the market value of invested capital and the book value of assets.

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