Question 1

Speed of delivery is an example of a leading indicator.

Accepted Answer

A) True 
 B)False

Question 2

Which performance plan is most tied to company objectives?

Accepted Answer

A)  profit sharing 
B)  pensions 
C)  piece rate 
D)  merit pay 
A)  profit sharing 
B)  pensions 
C)  piece rate 
D)  merit pay

Question 3

Qualitative non-financial performance measures

Accepted Answer

A)  are usually the most well-received by managers. 
B)  often reflect long-term organizational goals better than financial performance measures. 
C)  can only be developed in the production area of an organization. 
D)  is limited by the number of critical success factors defined by the organization. 
A)  are usually the most well-received by managers. 
B)  often reflect long-term organizational goals better than financial performance measures. 
C)  can only be developed in the production area of an organization. 
D)  is limited by the number of critical success factors defined by the organization.

Question 4

The Statement of Cash Flows indicates the cash inflows and outflows from

Accepted Answer

A)  investing, financing, and borrowing activities. 
B)  operating, investing, and sending activities. 
C)  merchandising, financing, and investing activities. 
D)  operating, investing, and financing activities. 
A)  investing, financing, and borrowing activities. 
B)  operating, investing, and sending activities. 
C)  merchandising, financing, and investing activities. 
D)  operating, investing, and financing activities.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The three components of throughput are _____________________________________________, ______________________________, and ___________________________________.

Accepted Answer

manufacturing cycle

Question 7

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?

Accepted Answer

A)  18.75% 
B)  33.33% 
C)  37.50% 
D)  42.86% 
A)  18.75% 
B)  33.33% 
C)  37.50% 
D)  42.86%

Question 8

If sales and expenses both rise by $100,000

Accepted Answer

A)  residual income will increase. 
B)  return on investment will increase. 
C)  return on investment will be unchanged. 
D)  asset turnover will decrease 
A)  residual income will increase. 
B)  return on investment will increase. 
C)  return on investment will be unchanged. 
D)  asset turnover will decrease

Question 9

Cultural differences between countries may make performance evaluation in multinational settings more difficult.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  15% 
B)  10% 
C)  25% 
D)  20% 
A)  15% 
B)  10% 
C)  25% 
D)  20%

Question 11

Which of the following would be considered a non-financial performance measurement?

Accepted Answer

A)  increase in market share 
B)  variances from standards 
C)  number of customer complaints 
D)  cost of engineering changes 
A)  increase in market share 
B)  variances from standards 
C)  number of customer complaints 
D)  cost of engineering changes

Question 12

The proportion of good units resulting from activities is referred to as ________________________________________.

Accepted Answer

process qu

Question 13

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 14

Which of the following pay plans encourages the improvement of the overall company's well-being?

Accepted Answer

A)  monthly salary 
B)  cafeteria plan 
C)  profit sharing 
D)  pensions 
A)  monthly salary 
B)  cafeteria plan 
C)  profit sharing 
D)  pensions

Question 15

Benchmarks for performance measures may be monetary or non-monetary.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would not be an appropriate cost driver to measure internal failure?

Accepted Answer

A)  design error 
B)  product failure 
C)  machine reliability 
D)  operator error 
A)  design error 
B)  product failure 
C)  machine reliability 
D)  operator error

Question 17

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 18

The Grocery Division The Grocery Division of Crest Company reported the following results for a recent year
  Refer to the Grocery Division
What was the profit margin for the Grocery Division?

Accepted Answer

A)  68% 
B)  35% 
C)  32% 
D)  22% 
A)  68% 
B)  35% 
C)  32% 
D)  22%

Question 19

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 target rate of return for Global Electronics Company?

Accepted Answer

A)  10% 
B)  15% 
C)  25% 
D)  5% 
A)  10% 
B)  15% 
C)  25% 
D)  5%

Question 20

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.

Speed of delivery is an example of a leading indicator.

Which performance plan is most tied to company objectives?

Qualitative non-financial performance measures

The Statement of Cash Flows indicates the cash inflows and outflows from

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

The three components of throughput are _________, , and _.

If sales and expenses both rise by $100,000

Cultural differences between countries may make performance evaluation in multinational settings more difficult.

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

Which of the following would be considered a non-financial performance measurement?

The proportion of good units resulting from activities is referred to as ________________________________________.

Objectives for a pay plan

Which of the following pay plans encourages the improvement of the overall company's well-being?

Benchmarks for performance measures may be monetary or non-monetary.

Which of the following would not be an appropriate cost driver to measure internal failure?

The traditional compensation package provides

The Grocery Division The Grocery Division of Crest Company reported the following results for a recent year Refer to the Grocery Division What was the profit margin for the Grocery Division?

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 target rate of return for Global Electronics Company?

Process productivity is calculated as

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

Speed of delivery is an example of a leading indicator.

Which performance plan is most tied to company objectives?

Qualitative non-financial performance measures

The Statement of Cash Flows indicates the cash inflows and outflows from

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

The three components of throughput are _____________________________________________, ______________________________, and ___________________________________.

If sales and expenses both rise by $100,000

Cultural differences between countries may make performance evaluation in multinational settings more difficult.

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

Which of the following would be considered a non-financial performance measurement?

The proportion of good units resulting from activities is referred to as ________________________________________.

Objectives for a pay plan

Which of the following pay plans encourages the improvement of the overall company's well-being?

Benchmarks for performance measures may be monetary or non-monetary.

Which of the following would not be an appropriate cost driver to measure internal failure?

The traditional compensation package provides

The Grocery Division The Grocery Division of Crest Company reported the following results for a recent year Refer to the Grocery Division What was the profit margin for the Grocery Division?

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 target rate of return for Global Electronics Company?

Process productivity is calculated as

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

The three components of throughput are _________, , and _.