Exam 10: Performance Evaluation

The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Management's target rate of return is 12% and the weighted average cost of capital is 9%. What is the Top Hat Division's capital turnover?

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 Residual Income (RI)?

Troy Company budgeted $12 million for customer service costs, but actually spent only $10 million. Which of the following statements is the best course of action for management to take in this instance?

Which of the following is a disadvantage of decentralization?

The following data relates to Logan Electric and its Light Bulb Division. What is the Light Bulb Division's Return on Investment (ROI)?

The Corn Flakes product line at Kellogg is most likely treated as a(n)

The difference between actual results and budgeted amounts is called decentralization.