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

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.How much net segment income is the new project expected to produce?

Jacksonville Company Jacksonville Company has established a target rate of return of 15% for all divisions.For the most recent year,Mandarin Division generated sales of $12,000,000 and expenses of $9,000,000.Total assets at the beginning of the year were $7,000,000 and total assets at the end of the year were $9,000,000. Refer to Jacksonville Company.For the most recent year,what was Mandarin Division's return on investment?

Discuss the rethinking taking place regarding the time frame used in American business performance systems.

Hunt Corporation has a target return of 15%.If a prospective investment has an estimated return on investment of 20%,and a residual income of $10,000,what is the estimated cost of the investment?

Residual income is used as a performance measure in which of the following types of centers?

Which of the following would be classified as a non-financial critical success factor?

Deferred compensation techniques are currently used in the American work place.What are they and how do they benefit the employer and the employee?

Piece rate pay

Improved effectiveness and efficiency of a product is considered a ____ performance measurement?

Discuss the ways in which management uses flexible budgets.

The Software Division of Entertainment Corporation has the following segment information: What was Cheesecake Division's return on investment?

Perry Corporation is composed of three operating divisions.Overall,the Perry Corporation has a return on investment of 20%.Division A has a return on investment of 25%.If Perry Corporation.evaluates its managers on the basis of return on investment,how would the Division A manager and the Perry Corporation president react to a new investment that has an estimated return on investment of 23%?

Hourly compensation provides a definite link between performance and reward.

Why is it likely that a subordinate manager would be more attentive to certain performance measures than overall corporate objectives to guide his decision making?

A pay plan that does not encourage the overall company good is

The Du Pont model measures

Discuss pay-for-performance plans.

The Educational Toy Corporation produces puzzles in its California manufacturing plant.The company is currently evaluating ways to improve productivity.The accountant of the firm's parent organization suggested that management implement a new compensation plan based on throughput performance measure as an incentive to increase productivity.To demonstrate how such a measure might work,the accountant gathered the following production data for a recent month:

Performance measures need not be correlated with the mission of a subunit.

Productive capacity is a measure used in computing