Question 1

The Du Pont model measures ROI as it is affected by

Accepted Answer

A)  contribution margin and asset turnover. 
B)  profit margin and asset turnover. 
C)  asset turnover. 
D)  profit margin. 
A)  contribution margin and asset turnover. 
B)  profit margin and asset turnover. 
C)  asset turnover. 
D)  profit margin.

Question 2

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 3

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 4

When inventory sits idle in a department, this would not affect the department's

Accepted Answer

A)  processing time. 
B)  throughput. 
C)  process quality yield. 
D)  dollar days. 
A)  processing time. 
B)  throughput. 
C)  process quality yield. 
D)  dollar days.

Question 5

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 6

Presently, the Comic Book Division of Anderson Publishing Corporation has a profit margin of 30%. If total sales rise by $100,000, the net result will be

Accepted Answer

A)  an increase in the profit margin ratio to above 30%. 
B)  a decrease in the profit margin ratio to below 30%. 
C)  no change in the profit margin ratio. 
D)  a change in the profit margin ratio that cannot be determined from this information. 
A)  an increase in the profit margin ratio to above 30%. 
B)  a decrease in the profit margin ratio to below 30%. 
C)  no change in the profit margin ratio. 
D)  a change in the profit margin ratio that cannot be determined from this information.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

Holding total production in units constant, as the proportion of defective units to total units declines, all of the following measures will be affected, except

Accepted Answer

A)  total unit sales. 
B)  throughput. 
C)  process quality yield. 
D)  process productivity. 
A)  total unit sales. 
B)  throughput. 
C)  process quality yield. 
D)  process productivity.

Question 10

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

Accepted Answer

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

Question 11

Profit margin equals

Accepted Answer

A)  income divided by sales. 
B)  incomes divided by average inventory. 
C)  income divided by average assets. 
D)  income divided by average stockholder's equity. 
A)  income divided by sales. 
B)  incomes divided by average inventory. 
C)  income divided by average assets. 
D)  income divided by average stockholder's equity.

Question 12

Houston Company Freeport Division of the Houston Company has the following statistics for its most recent operations:
  Refer to Houston Company. Compute EVA assuming the cost of capital is 10% and the tax rate is 40%.

Accepted Answer

A)  $ 90,000 
B)  $ 150,000 
C)  $0 
D)  $ (60,000) 
A)  $ 90,000 
B)  $ 150,000 
C)  $0 
D)  $ (60,000)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

The Clothing Division The Clothing Division of Sakowitz Company reported the following results for a recent year
  Refer to the Clothing Division
What was the asset turnover ratio of the Clothing Division?

Accepted Answer

A)  1.475 
B)  3.48 
C)  0.680 
D)  1.23 
A)  1.475 
B)  3.48 
C)  0.680 
D)  1.23

Question 16

In a balanced scorecard, measurements should be directly linked to

Accepted Answer

A)  organizational strategy and values. 
B)  the cost management system. 
C)  current organizational profitability. 
D)  activity-based management concepts. 
A)  organizational strategy and values. 
B)  the cost management system. 
C)  current organizational profitability. 
D)  activity-based management concepts.

Question 17

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?

Accepted Answer

Managers are evaluated based on how thei

Question 18

Economic value added (EVA) applies the target rate of return to the market value of the capital invested in a division.

Accepted Answer

A) True 
 B)False

Question 19

Non-financial measures are generally more indicative of productive activity than are financial performance measures.

Accepted Answer

A) True 
 B)False

Question 20

Broncho Sports Enterprises The Football Division of Broncho Sports Enterprises reported the following financial data for the year:
  Refer to Broncho Sports Enterprises. What was the Football Division's segment income?

Accepted Answer

A)  $168,000 
B)  $125,000 
C)  $269,000 
D)  $ 19,000 
A)  $168,000 
B)  $125,000 
C)  $269,000 
D)  $ 19,000

The Du Pont model measures ROI as it is affected by

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

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

When inventory sits idle in a department, this would not affect the department's

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

Presently, the Comic Book Division of Anderson Publishing Corporation has a profit margin of 30%. If total sales rise by $100,000, the net result will be

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

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

Holding total production in units constant, as the proportion of defective units to total units declines, all of the following measures will be affected, except

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

Profit margin equals

Houston Company Freeport Division of the Houston Company has the following statistics for its most recent operations: Refer to Houston Company. Compute EVA assuming the cost of capital is 10% and the tax rate is 40%.

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

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

The Clothing Division The Clothing Division of Sakowitz Company reported the following results for a recent year Refer to the Clothing Division What was the asset turnover ratio of the Clothing Division?

In a balanced scorecard, measurements should be directly linked to

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?

Economic value added (EVA) applies the target rate of return to the market value of the capital invested in a division.

Non-financial measures are generally more indicative of productive activity than are financial performance measures.

Broncho Sports Enterprises The Football Division of Broncho Sports Enterprises reported the following financial data for the year: Refer to Broncho Sports Enterprises. What was the Football Division's segment 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 Du Pont model measures ROI as it is affected by

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

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

When inventory sits idle in a department, this would not affect the department's

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

Presently, the Comic Book Division of Anderson Publishing Corporation has a profit margin of 30%. If total sales rise by $100,000, the net result will be

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

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

Holding total production in units constant, as the proportion of defective units to total units declines, all of the following measures will be affected, except

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

Profit margin equals

Houston Company Freeport Division of the Houston Company has the following statistics for its most recent operations: Refer to Houston Company. Compute EVA assuming the cost of capital is 10% and the tax rate is 40%.

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

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

The Clothing Division The Clothing Division of Sakowitz Company reported the following results for a recent year Refer to the Clothing Division What was the asset turnover ratio of the Clothing Division?

In a balanced scorecard, measurements should be directly linked to

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?

Economic value added (EVA) applies the target rate of return to the market value of the capital invested in a division.

Non-financial measures are generally more indicative of productive activity than are financial performance measures.

Broncho Sports Enterprises The Football Division of Broncho Sports Enterprises reported the following financial data for the year: Refer to Broncho Sports Enterprises. What was the Football Division's segment 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