Exam 23: Performance Evaluation and the Balanced Scorecard
Exam 1: Accounting and the Business Environment50 Questions
Exam 2: Recording Business Transactions76 Questions
Exam 3: The Adjusting Process64 Questions
Exam 4: Completing the Accounting Cycle65 Questions
Exam 5: Merchandising Operations66 Questions
Exam 6: Merchandising Inventory66 Questions
Exam 7: Internal Control and Cash56 Questions
Exam 8: Receivables58 Questions
Exam 9: Plant Assets and Intangibles54 Questions
Exam 10: Current Liabilities, Payroll, and Long-Term Liabilities78 Questions
Exam 11: Corporations: Paid-In Capital and the Balance Sheet52 Questions
Exam 12: Corporations: Effects on Retained Earnings and the Income Statement72 Questions
Exam 13: The Statement of Cash Flows18 Questions
Exam 14: Financial Statement Analysis81 Questions
Exam 15: Introduction to Management Accounting47 Questions
Exam 16: Job Order and Process Costing78 Questions
Exam 16: Appendix: Process Costing82 Questions
Exam 17: Activity-Based Costing and Other Cost Management Tools56 Questions
Exam 18: Cost-Volume-Profit Analysis92 Questions
Exam 19: Short-Term Business Decisions64 Questions
Exam 20: Capital Investment Decisions and the Time Value of Money70 Questions
Exam 21: The Master Budget and Responsibility Accounting71 Questions
Exam 22: Flexible Budgets and Standard Costs81 Questions
Exam 23: Performance Evaluation and the Balanced Scorecard58 Questions
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Waddington Corporation currently has a return on investment of 12%. The Madrid division is reporting residual income of $1,000,000 and a 14% return on investment. The Madrid division is contemplating an investment opportunity which has an 11% return on investment and a positive residual income. Should Madrid division's management make the investment if goal congruence is important to the Waddington Corporation?
(Multiple Choice)
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Which of the following will not change a company's return on investment?
(Multiple Choice)
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Which of the following does not accurately describe the balanced scorecard approach?
(Multiple Choice)
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Which of the following transactions will result in an increase in economic value added?
(Multiple Choice)
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Which of the following is not taken into consideration when calculating residual income?
(Multiple Choice)
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Selling property, plant, and equipment at a loss will result in an increase in return on investment.
(True/False)
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Which of the following is not taken into consideration when calculating return on investment?
(Multiple Choice)
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Which of the following is irrelevant with respect to calculating economic value added?
(Multiple Choice)
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The management of Mullen Division has provided the following information:
Operating assets: $600,000
Operating income: $90,000
Sales: $300,000
Management is considering investing in an additional project costing $60,000; it is estimated that the project will create operating income of $7,200. Mullen's minimum desired rate of return is 10%. Should Mullen's management invest in the project if management is evaluated using residual income?
(Multiple Choice)
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The management of Mullen Division has provided the following information:
Total assets: $600,000
Operating income: $90,000
Sales: $300,000
Management is considering investing in an additional project costing $60,000; it is estimated that the project will create operating income of $7,200. Mullen's minimum acceptable rate of return is 10%. How much is Mullen's overall residual income if the investment is made?
(Multiple Choice)
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Assume division 1 of the XYZ Company had the following results last year (in thousands). Management's required rate of return is 8% and the weighted average cost of capital is 6%. Its effective tax rate is 30%.
Sales \ 5,000,000 Operating income \ 1,000,000 Total assets \ 10,000,000 Current liabilities \ 500,000 What is the division's capital turnover?
(Multiple Choice)
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One disadvantage of the economic value added approach is its short-run focus which can lead to a lack of long-term goal congruence.
(True/False)
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The management of Mullen Division has provided the following information:
Total assets: $600,000
Operating income: $90,000
Sales: $300,000
Management is considering investing in an additional project costing $60,000; it is estimated that the project will create operating income of $7,200. Mullen's minimum acceptable rate of return is 10%. Which of the following statements is incorrect?
(Multiple Choice)
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Which of the following will not result in an increase in both return on investment and residual
Income?
(Multiple Choice)
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Assume the Apple division of the Gala Company had the following results last year (in thousands). Managements required rate of return is 10% and the weighted average cost of capital is 8%. Its effective tax rate is 30%.
Sales \ 3,000,000 Operating income \ 500,000 Total assets \ 4,500,000 Current liabilities \ 300,000 What is Apple division's profit margin?
(Multiple Choice)
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Which of the following statements regarding the weighted average cost of capital is incorrect?
(Multiple Choice)
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Hancock Corporation has a capital turnover of 2, sales of $500,000, and a return on investment of 4%. What was Hancock's operating income??
(Multiple Choice)
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Norwood Company has a return on investment of 10%, operating income of $200,000, and a capital turnover of 4.0. How much were Norwood's total assets?
(Multiple Choice)
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