Question 1

If a division generates a positive residual income then the division's

Accepted Answer

A) asset turnover was very high. 
B) profitability was greater than that of other divisions in the company. 
C) performance was above expectations. 
D) actual return on investment exceeds the division's target return. 
A) asset turnover was very high. 
B) profitability was greater than that of other divisions in the company. 
C) performance was above expectations. 
D) actual return on investment exceeds the division's target return.

Question 2

A statement that identifies fundamental beliefs about what is important to an organization is referred to as a ______________________________.

Accepted Answer

The answer of A statement that identifies fundamental beliefs about...

Question 3

Global Electronics Company The Computer Division of Global Electronics Company had the following financial data for the year:
  Refer to Global Electronics Company.If the manager of the Computer Division is evaluated based on return on investment,how much would she be willing to pay for an investment that promises to increase net segment income by $50,000?

Accepted Answer

A) $ 50,000 
B) $ 333,333 
C) $1,000,000 
D) $ 500,000 
A) $ 50,000 
B) $ 333,333 
C) $1,000,000 
D) $ 500,000

Question 4

An indicator that reflects the results of past decisions is referred to as a(n)______________________________.

Accepted Answer

The answer of An indicator that reflects the results of...

Question 5

Relative to qualitative performance measures,quantitative performance measures are less

Accepted Answer

A) subject to manipulation. 
B) dependent on accounting information. 
C) effective in the pursuit of organizational goals. 
D) subjective. 
A) subject to manipulation. 
B) dependent on accounting information. 
C) effective in the pursuit of organizational goals. 
D) subjective.

Question 6

The ratio of income to assets invested is referred to as ___________________________________.
or

Accepted Answer

return on

Question 7

Return on investment is computed by dividing income by

Accepted Answer

A) contribution margin. 
B) inventory turnover. 
C) assets invested. 
D) average assets employed. 
A) contribution margin. 
B) inventory turnover. 
C) assets invested. 
D) average assets employed.

Question 8

Process quality yield reflects the proportion of

Accepted Answer

A) time it takes to make a good unit. 
B) good units to defective units. 
C) total time spent to total time available. 
D) total units produced that are good units. 
A) time it takes to make a good unit. 
B) good units to defective units. 
C) total time spent to total time available. 
D) total units produced that are good units.

Question 9

Total units produced during the period divided by the value-added processing time is referred to as ______________________________.

Accepted Answer

process pr

Question 10

Process productivity is calculated as

Accepted Answer

A) total units divided by non-value-added processing time. 
B) total units divided by value-added processing time. 
C) value-added processing time divided by total units. 
D) value-added processing divided by total time. 
A) total units divided by non-value-added processing time. 
B) total units divided by value-added processing time. 
C) value-added processing time divided by total units. 
D) value-added processing divided by total time.

Question 11

Compensation packages for executives of American firms

Accepted Answer

A) are beginning to emphasize the long-term commitment executives should have in the firm. 
B) are considered comparable to packages earned by European and Asian executives. 
C) are shifting towards lower percentages of annual incentives. 
D) are shifting away from long-term awards. 
A) are beginning to emphasize the long-term commitment executives should have in the firm. 
B) are considered comparable to packages earned by European and Asian executives. 
C) are shifting towards lower percentages of annual incentives. 
D) are shifting away from long-term awards.

Question 12

Eastern Division
The Eastern Division of Freeport Chemical Co.produced the following operating results for the previous year:
   The Eastern Division is considering a $1,000,000 investment in a new project.The Eastern Division estimates that its return on investment (for all of its operations)would be at 22% with the new investment.
Refer to Eastern Division.If the manager of the Eastern Division is evaluated on return on investment alone,will the manager invest in the new project? Explain.

Accepted Answer

The manager would not invest in the new

Question 13

Global Electronics Company The Computer Division of Global Electronics Company had the following financial data for the year:
  Refer to Global Electronics Company.What was the Computer Division's segment income?

Accepted Answer

A) $150,000 
B) $100,000 
C) $250,000 
D) $ 50,000 
A) $150,000 
B) $100,000 
C) $250,000 
D) $ 50,000

Question 14

Performance measures that reflect an organization's ability to satisfy customers better than rival firms do are referred to as ____________________ measures.

Accepted Answer

The answer of Performance measures that reflect an organization's ability...

Question 15

Which of the following types of employee compensation are tax-exempt?

Accepted Answer

A) contingent pay 
B) profit sharing 
C) cafeteria plans 
D) stock appreciation rights 
A) contingent pay 
B) profit sharing 
C) cafeteria plans 
D) stock appreciation rights

Question 16

Broncho Sports Enterprises The Football Division of Broncho Sports Enterprises reported the following financial data for the year:
  Refer to Broncho Sports Company.What was the target rate of return for Broncho Sports Company?

Accepted Answer

A) 4% 
B) 5% 
C) 7% 
D) 9% 
A) 4% 
B) 5% 
C) 7% 
D) 9%

Question 17

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

Accepted Answer

A) 60% 
B) 70% 
C) 83% 
D) 143% 
A) 60% 
B) 70% 
C) 83% 
D) 143%

Question 18

Oil Division
The Oil Division is one of the operating units of Automotive Solutions,Inc.The following operating data of the division is presented below:
   Refer to Oil Division.What was the return on investment for the Oil Division?

Accepted Answer

ROI = Segment Income/Assets Se

Question 19

Statistical data about the steps that will create the results desired as referred to as ___________________________________.

Accepted Answer

The answer of Statistical data about the steps that will...

Question 20

Which of the following would not normally affect the compensation strategy of a firm?

Accepted Answer

A) organizational goals 
B) location of firm 
C) competition 
D) number of subsidiaries 
A) organizational goals 
B) location of firm 
C) competition 
D) number of subsidiaries

If a division generates a positive residual income then the division's

A statement that identifies fundamental beliefs about what is important to an organization is referred to as a ______________________________.

An indicator that reflects the results of past decisions is referred to as a(n)______________________________.

Relative to qualitative performance measures,quantitative performance measures are less

The ratio of income to assets invested is referred to as ___________________________________. or

Return on investment is computed by dividing income by

Process quality yield reflects the proportion of

Total units produced during the period divided by the value-added processing time is referred to as ______________________________.

Process productivity is calculated as

Compensation packages for executives of American firms

Global Electronics Company The Computer Division of Global Electronics Company had the following financial data for the year: Refer to Global Electronics Company.What was the Computer Division's segment income?

Performance measures that reflect an organization's ability to satisfy customers better than rival firms do are referred to as ____________________ measures.

Which of the following types of employee compensation are tax-exempt?

Broncho Sports Enterprises The Football Division of Broncho Sports Enterprises reported the following financial data for the year: Refer to Broncho Sports Company.What was the target rate of return for Broncho Sports Company?

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

Oil Division The Oil Division is one of the operating units of Automotive Solutions,Inc.The following operating data of the division is presented below: Refer to Oil Division.What was the return on investment for the Oil Division?

Statistical data about the steps that will create the results desired as referred to as ___________________________________.

Which of the following would not normally affect the compensation strategy of a firm?

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

If a division generates a positive residual income then the division's

A statement that identifies fundamental beliefs about what is important to an organization is referred to as a ______________________________.

An indicator that reflects the results of past decisions is referred to as a(n)______________________________.

Relative to qualitative performance measures,quantitative performance measures are less

The ratio of income to assets invested is referred to as ___________________________________. or

Return on investment is computed by dividing income by

Process quality yield reflects the proportion of

Total units produced during the period divided by the value-added processing time is referred to as ______________________________.

Process productivity is calculated as

Compensation packages for executives of American firms

Global Electronics Company The Computer Division of Global Electronics Company had the following financial data for the year: Refer to Global Electronics Company.What was the Computer Division's segment income?

Performance measures that reflect an organization's ability to satisfy customers better than rival firms do are referred to as ____________________ measures.

Which of the following types of employee compensation are tax-exempt?

Broncho Sports Enterprises The Football Division of Broncho Sports Enterprises reported the following financial data for the year: Refer to Broncho Sports Company.What was the target rate of return for Broncho Sports Company?

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

Oil Division The Oil Division is one of the operating units of Automotive Solutions,Inc.The following operating data of the division is presented below: Refer to Oil Division.What was the return on investment for the Oil Division?

Statistical data about the steps that will create the results desired as referred to as ___________________________________.

Which of the following would not normally affect the compensation strategy of a firm?

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