Exam 10: Performance Evaluation

Management by exception is used to determine which variances to investigate.

Kleeman Company has a sales margin of 16%, operating income of $336,000, and capital turnover of 3.0. The sales in dollars for Kleeman Company would be closest to

The number of new services offered during the period would be an example of measuring which perspective?

Product lines are generally considered profit centers.

The Pasta Division of Whole Grain Corporation had sales of $5,500,000 and operating income of $1,375,000 last year. The total assets of the Pasta Division were $2,750,000, while current liabilities were $330,000. Whole Grain Corporation's target rate of return is 12%, while its weighted average cost of capital is 8%. The effective tax rate for the company is 30%. What is the Pasta Division's Return on Investment (ROI)?

Rivera Publishing reported the following results for its Trade Paperback Division: Rivera's target rate of return is 12% and the weighted average cost of capital is 10%. What is the Trade Paperback Division's Return on Investment (ROI)?

The performance evaluation of cost centers is typically based on which of the following?

Describe the four types of responsibility centers. Give a specific example of each of the four types of responsibility centers.

Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%. What is the division's capital turnover?

The ultimate purpose of the balanced scorecard is to give management a balanced view of the company's performance.

The manager of a local CVS drugstore would be in charge of a(n)

The number of rework units would be an example of measuring which perspective?

Revenue center performance reports are reports that list variances.

The manager of the Northeast sales region at General Mills would be in charge of a(n)

Return on investment and revenue growth would be examples of

Using ________ may cause a manager to reject a project that would be profitable for the company as a whole.

What are the total assets reported by Sparrow Enterprises if operating income is $650,000, its return on investment (ROI)is 40%, and its target rate of return is 10%?

The ________ is best for managers to use in order to plan revenues and expenses at different sales volumes.

The manager of the Walt Disney World Studios (a corporate division)would be in charge of a(n)

A profit center is a responsibility center in which a manager is accountable for costs only.