Question 1

The Du Pont model measures

Accepted Answer

A)  residual income. 
B)  return on investment. 
C)  throughput. 
D)  profit. 
A)  residual income. 
B)  return on investment. 
C)  throughput. 
D)  profit.

Question 2

Profit margin indicates management's efficiency with regard to sales and expenses.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The number of good units or quantity of services that are produced and sold by an organization within a specified time is referred to as process quality yield.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Asset turnover equals

Accepted Answer

A)  income divided by average assets. 
B)  sales divided by assets. 
C)  sales divided by average assets. 
D)  assets divided by sales. 
A)  income divided by average assets. 
B)  sales divided by assets. 
C)  sales divided by average assets. 
D)  assets divided by sales.

Question 7

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

Question 8

Information for two divisions of Precision Paper Company is given below:

Accepted Answer

The answer of Information for two divisions of Precision Paper...

Question 9

If a new project generates a positive residual income, the

Accepted Answer

A)  project's return on investment is less than the target rate. 
B)  project's return on investment is greater than the target rate. 
C)  project's return on investment is equal to the target rate. 
D)  relationship between the project's return on investment and the target rate cannot necessarily be determined. 
A)  project's return on investment is less than the target rate. 
B)  project's return on investment is greater than the target rate. 
C)  project's return on investment is equal to the target rate. 
D)  relationship between the project's return on investment and the target rate cannot necessarily be determined.

Question 10

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:

Accepted Answer

The answer of The Educational Toy Corporation produces puzzles in...

Question 11

A measure of profit produced above the cost of capital is referred to as ___________________________________.
or

Accepted Answer

economic v

Question 12

Discuss the ways in which management uses flexible budgets.

Accepted Answer

Flexible budgets are important to manage

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. If expenses increased by $20,000 in the Computer 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 14

Financial incentives are

Accepted Answer

A)  different from monetary rewards 
B)  the same thing as a salary element 
C)  provided to all employee groups. 
D)  available to top management whose performance exceeds targeted objectives 
A)  different from monetary rewards 
B)  the same thing as a salary element 
C)  provided to all employee groups. 
D)  available to top management whose performance exceeds targeted objectives

Question 15

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?

Accepted Answer

A)  $200,000 
B)  $ 66,667 
C)  $ 50,000 
D)  The answer can't be determined from this information. 
A)  $200,000 
B)  $ 66,667 
C)  $ 50,000 
D)  The answer can't be determined from this information.

Question 16

Process quality yield reflects the proportion of

Accepted Answer

A)  good units to bad units. 
B)  time required to produce a good unit. 
C)  total units manufactured that are good. 
D)  total time spent to time available. 
A)  good units to bad units. 
B)  time required to produce a good unit. 
C)  total units manufactured that are good. 
D)  total time spent to time available.

Question 17

An increase in a corporation's target rate would result in a(n)

Accepted Answer

A)  increase in residual income. 
B)  decrease in return on investment. 
C)  decrease in residual income. 
D)  decrease in both residual income and return on investment. 
A)  increase in residual income. 
B)  decrease in return on investment. 
C)  decrease in residual income. 
D)  decrease in both residual income and return on investment.

Question 18

Manipulation of segment expenses may result in the segment margin not being an accurate performance measure.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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 throughput per hour?

Accepted Answer

A)  .83 units 
B)  1.43 units 
C)  1.67 units 
D)  2.00 units 
A)  .83 units 
B)  1.43 units 
C)  1.67 units 
D)  2.00 units

The Du Pont model measures

Profit margin indicates management's efficiency with regard to sales and expenses.

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

The number of good units or quantity of services that are produced and sold by an organization within a specified time is referred to as process quality yield.

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

Asset turnover equals

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

Information for two divisions of Precision Paper Company is given below:

If a new project generates a positive residual income, the

A measure of profit produced above the cost of capital is referred to as ___________________________________. or

Discuss the ways in which management uses flexible budgets.

Global Electronics Company The Computer Division of Global Electronics Company had the following financial data for the year: Refer to Global Electronics Company. If expenses increased by $20,000 in the Computer Division,

Financial incentives are

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?

Process quality yield reflects the proportion of

An increase in a corporation's target rate would result in a(n)

Manipulation of segment expenses may result in the segment margin not being an accurate performance measure.

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?

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 throughput per hour?

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

Profit margin indicates management's efficiency with regard to sales and expenses.

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

The number of good units or quantity of services that are produced and sold by an organization within a specified time is referred to as process quality yield.

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

Asset turnover equals

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

Information for two divisions of Precision Paper Company is given below:

If a new project generates a positive residual income, the

A measure of profit produced above the cost of capital is referred to as ___________________________________. or

Discuss the ways in which management uses flexible budgets.

Global Electronics Company The Computer Division of Global Electronics Company had the following financial data for the year: Refer to Global Electronics Company. If expenses increased by $20,000 in the Computer Division,

Financial incentives are

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?

Process quality yield reflects the proportion of

An increase in a corporation's target rate would result in a(n)

Manipulation of segment expenses may result in the segment margin not being an accurate performance measure.

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?

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 throughput per hour?

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