Exam 23: Performance Measurement, Compensation, and Multinational Considerations

Discuss the issues and complications that may arise when multinational corporations conduct performance measurement and comparisons among divisions located in different countries.

(Essay)

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Question 101

The proponents of using net book value as an investment base maintain that it is less confusing because it is consistent with the amount of total assets shown in the conventional balance sheet.

(True/False)

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Question 102

The required rate of return multiplied by the investment is the ________.

(Multiple Choice)

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Question 103

The credit rating agencies require detailed disclosures of the compensation arrangements of top-level executives.

(True/False)

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Question 104

Which of the following is the formula for investment assuming that total assets employed is the measure?

(Multiple Choice)

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Question 105

A major weakness of comparing two companies using only operating incomes as the basis of comparison is that it ignores the differences in the size of the investment and therefore any concept of yield or return on investment.

(True/False)

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Question 106

Higher inflation will lead to higher prices for goods or services, which will increase a company's operating income and lead to a higher ROI.

(True/False)

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Question 107

Which of the following is a performance measure?

(Multiple Choice)

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Question 108

Home Decor Inc., manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2018: ASSETSINCOME The company is currently using a 15% required rate of return. What are Bleach's and Cleanser's residual incomes based on book values, respectively?

(Multiple Choice)

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Question 109

Provide the missing data for the following situations:

(Essay)

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Question 110

________ would be an uncontrollable factor that a firm would need to consider when evaluating the return on investment of an international division.

(Multiple Choice)

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Question 111

The Cybertronics Corporation reported the following information for its Cyclotron Division: Income is defined as operating income. What is the Cyclotron Division's return on investment?

(Multiple Choice)

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Question 112

Some companies, make environmental performance a line item on every employee's salary appraisal report.

(True/False)

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Question 113

Average number of repeat visits in a spa unit is a ________ measure on a balanced scorecard.

(Multiple Choice)

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Question 114

Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2018: ASSETSINCOME The company is currently using a 12% required rate of return. What are Wheels's and Assembly's return on investment based on book values, respectively?

(Multiple Choice)

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Question 115

Customer-satisfaction measures are an example of the ________.

(Multiple Choice)

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Question 116

Which of the following describes a situation in which an employee prefers to exert less effort than the effort the owner desires because the employee's effort cannot be accurately monitored and enforced?

(Multiple Choice)

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Question 117

Measures which monitor critical performance variables that help managers track progress toward achieving a company's strategic goals are collectively called diagnostic control systems.

(True/False)

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Question 118

Required rate of return multiplied by the investment is the weighted average cost of the investment.

(True/False)

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Question 119

Return on investment can be increased by ________.

(Multiple Choice)

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Question 120

Showing 101 - 120 of 150

Exam 23: Performance Measurement, Compensation, and Multinational Considerations

Discuss the issues and complications that may arise when multinational corporations conduct performance measurement and comparisons among divisions located in different countries.

The proponents of using net book value as an investment base maintain that it is less confusing because it is consistent with the amount of total assets shown in the conventional balance sheet.

The required rate of return multiplied by the investment is the ________.

The credit rating agencies require detailed disclosures of the compensation arrangements of top-level executives.

Which of the following is the formula for investment assuming that total assets employed is the measure?

A major weakness of comparing two companies using only operating incomes as the basis of comparison is that it ignores the differences in the size of the investment and therefore any concept of yield or return on investment.

Higher inflation will lead to higher prices for goods or services, which will increase a company's operating income and lead to a higher ROI.

Which of the following is a performance measure?

Provide the missing data for the following situations:

________ would be an uncontrollable factor that a firm would need to consider when evaluating the return on investment of an international division.

The Cybertronics Corporation reported the following information for its Cyclotron Division: Income is defined as operating income. What is the Cyclotron Division's return on investment?

Some companies, make environmental performance a line item on every employee's salary appraisal report.

Average number of repeat visits in a spa unit is a ________ measure on a balanced scorecard.

Customer-satisfaction measures are an example of the ________.

Which of the following describes a situation in which an employee prefers to exert less effort than the effort the owner desires because the employee's effort cannot be accurately monitored and enforced?

Measures which monitor critical performance variables that help managers track progress toward achieving a company's strategic goals are collectively called diagnostic control systems.

Required rate of return multiplied by the investment is the weighted average cost of the investment.

Return on investment can be increased by ________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, Just-in-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

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