Question 1

The following data relates to Logan Electric and its Light Bulb Division.   What is the Light Bulb Division's Residual Income (RI)?

Accepted Answer

A) $(375,000) 
B) $420,000 
C) $218,000 
D) $300,000 
A) $(375,000) 
B) $420,000 
C) $218,000 
D) $300,000

Question 2

The number of warranty claims would be an example of the

Accepted Answer

A) financial perspective. 
B) customer perspective. 
C) learning and growth perspective. 
D) internal business perspective. 
A) financial perspective. 
B) customer perspective. 
C) learning and growth perspective. 
D) internal business perspective.

Question 3

Summer Nights sells bottles of bug spray for $6.50 each. Variable costs are $3.00 per bottle, while fixed costs are $44,000 per month for volumes up to 30,000 bottles of spray and $54,000 per month for volumes above 30,000 bottles of spray. The flexible budget would reflect monthly operating income for 19,000 bottles of lotion and 24,000 bottles of lotion of what dollar amounts?

Accepted Answer

A) $79,500 and $40,000, respectively 
B) $22,500 and $40,000, respectively 
C) $123,500 and $156,000, respectively 
D) $12,500 and $102,000, respectively 
A) $79,500 and $40,000, respectively 
B) $22,500 and $40,000, respectively 
C) $123,500 and $156,000, respectively 
D) $12,500 and $102,000, respectively

Question 4

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows:   What is The Portland Porcelain Works Coffee Mug Division return on investment?

Accepted Answer

A) 57.60% 
B) 320.00% 
C) 18.00% 
D) 7.83% 
A) 57.60% 
B) 320.00% 
C) 18.00% 
D) 7.83%

Question 5

The store manager for the Dick's Sporting Goods location in Columbus, Ohio, is in charge of a(n)

Accepted Answer

A) cost center. 
B) investment center. 
C) profit center. 
D) revenue center. 
A) cost center. 
B) investment center. 
C) profit center. 
D) revenue center.

Question 6

Civic Corporation provided the following partially completed monthly flexible budget. Complete the flexible budget.

Accepted Answer

The answer of Civic Corporation provided the following partially completed...

Question 7

With regard to flexible budgets, which of the following statements is true?

Accepted Answer

A) They are prepared for one level of sales volume. 
B) Managers use them to help plan for uncertainties. 
C) They are prepared by the accounting department on an annual basis. 
D) They are designed to estimate revenues only. 
A) They are prepared for one level of sales volume. 
B) Managers use them to help plan for uncertainties. 
C) They are prepared by the accounting department on an annual basis. 
D) They are designed to estimate revenues only.

Question 8

The use of return on investment (ROI)as a performance measure may lead managers to reject projects that would be profitable for the company as a whole.

Accepted Answer

A) True 
 B)False

Question 9

Company growth rates (compared to industry growth rates)would be an example of measuring which perspective?

Accepted Answer

A) Financial 
B) Customer 
C) Internal business 
D) Learning and growth 
A) Financial 
B) Customer 
C) Internal business 
D) Learning and growth

Question 10

Sales margin is calculated as operating income divided by sales.

Accepted Answer

A) True 
 B)False

Question 11

The performance evaluation of a profit center is typically based on its

Accepted Answer

A) flexible budget variance. 
B) static budget variance. 
C) return on investment. 
D) return on assets. 
A) flexible budget variance. 
B) static budget variance. 
C) return on investment. 
D) return on assets.

Question 12

The ________ from the balanced scorecard focuses on determining the company's "climate for action."

Accepted Answer

A) internal business perspective 
B) learning and growth perspective 
C) customer perspective 
D) financial perspective 
A) internal business perspective 
B) learning and growth perspective 
C) customer perspective 
D) financial perspective

Question 13

A graph of a flexible budget formula reflects fixed costs of $45,000 per month and total costs of $100,000 at a volume of 5,000 units. Assuming the relevant range is 1,000 to 20,000 units, the graph would reflect total monthly costs at 15,000 units of what dollar amount?

Accepted Answer

A) $210,000 
B) $100,000 
C) $345,000 
D) $165,000 
A) $210,000 
B) $100,000 
C) $345,000 
D) $165,000

Question 14

Dagny Enterprises has a target rate of return of 10%, an ROI of 48%, and capital turnover of 3.0. The sales margin for Dagny Enterprises would be closest to

Accepted Answer

A) 144%. 
B) 16%. 
C) 3%. 
D) 30%. 
A) 144%. 
B) 16%. 
C) 3%. 
D) 30%.

Question 15

The manager of the accounting department at Adidas would be in charge of a(n)

Accepted Answer

A) investment center. 
B) cost center. 
C) profit center. 
D) revenue center. 
A) investment center. 
B) cost center. 
C) profit center. 
D) revenue center.

Question 16

Pigeon Forges' stakeholders require a 10% rate of return. The company currently has an ROI of 37% and a capital turnover of 2.0. What is Pigeon's sales margin?

Accepted Answer

A) 74.3% 
B) 5.0% 
C) 18.5% 
D) 20.0% 
A) 74.3% 
B) 5.0% 
C) 18.5% 
D) 20.0%

Question 17

A product line at PepsiCo (such as the Pepsi Max product line)is most likely treated as a(n)

Accepted Answer

A) cost center. 
B) profit center. 
C) investment center. 
D) revenue center. 
A) cost center. 
B) profit center. 
C) investment center. 
D) revenue center.

Question 18

The ________ from the balanced scorecard focuses on determining if customers are satisfied.

Accepted Answer

A) internal business perspective 
B) learning and growth perspective 
C) customer perspective 
D) financial perspective 
A) internal business perspective 
B) learning and growth perspective 
C) customer perspective 
D) financial perspective

Question 19

Companies that decentralize split their operations into different divisions or operating units.

Accepted Answer

A) True 
 B)False

Question 20

With ________, managers look at the size of the variances between actual results and budgeted amounts in order to determine which variances should be investigated.

Accepted Answer

A) management by variance 
B) management by budget 
C) management by decision 
D) management by exception 
A) management by variance 
B) management by budget 
C) management by decision 
D) management by exception

The following data relates to Logan Electric and its Light Bulb Division. What is the Light Bulb Division's Residual Income (RI)?

The number of warranty claims would be an example of the

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division return on investment?

The store manager for the Dick's Sporting Goods location in Columbus, Ohio, is in charge of a(n)

Civic Corporation provided the following partially completed monthly flexible budget. Complete the flexible budget.

With regard to flexible budgets, which of the following statements is true?

The use of return on investment (ROI)as a performance measure may lead managers to reject projects that would be profitable for the company as a whole.

Company growth rates (compared to industry growth rates)would be an example of measuring which perspective?

Sales margin is calculated as operating income divided by sales.

The performance evaluation of a profit center is typically based on its

The ________ from the balanced scorecard focuses on determining the company's "climate for action."

A graph of a flexible budget formula reflects fixed costs of $45,000 per month and total costs of $100,000 at a volume of 5,000 units. Assuming the relevant range is 1,000 to 20,000 units, the graph would reflect total monthly costs at 15,000 units of what dollar amount?

Dagny Enterprises has a target rate of return of 10%, an ROI of 48%, and capital turnover of 3.0. The sales margin for Dagny Enterprises would be closest to

The manager of the accounting department at Adidas would be in charge of a(n)

Pigeon Forges' stakeholders require a 10% rate of return. The company currently has an ROI of 37% and a capital turnover of 2.0. What is Pigeon's sales margin?

A product line at PepsiCo (such as the Pepsi Max product line)is most likely treated as a(n)

The ________ from the balanced scorecard focuses on determining if customers are satisfied.

Companies that decentralize split their operations into different divisions or operating units.

With ________, managers look at the size of the variances between actual results and budgeted amounts in order to determine which variances should be investigated.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 10: Performance Evaluation

The following data relates to Logan Electric and its Light Bulb Division. What is the Light Bulb Division's Residual Income (RI)?

The number of warranty claims would be an example of the

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division return on investment?

The store manager for the Dick's Sporting Goods location in Columbus, Ohio, is in charge of a(n)

Civic Corporation provided the following partially completed monthly flexible budget. Complete the flexible budget.

With regard to flexible budgets, which of the following statements is true?

The use of return on investment (ROI)as a performance measure may lead managers to reject projects that would be profitable for the company as a whole.

Company growth rates (compared to industry growth rates)would be an example of measuring which perspective?

Sales margin is calculated as operating income divided by sales.

The performance evaluation of a profit center is typically based on its

The ________ from the balanced scorecard focuses on determining the company's "climate for action."

A graph of a flexible budget formula reflects fixed costs of $45,000 per month and total costs of $100,000 at a volume of 5,000 units. Assuming the relevant range is 1,000 to 20,000 units, the graph would reflect total monthly costs at 15,000 units of what dollar amount?

Dagny Enterprises has a target rate of return of 10%, an ROI of 48%, and capital turnover of 3.0. The sales margin for Dagny Enterprises would be closest to

The manager of the accounting department at Adidas would be in charge of a(n)

Pigeon Forges' stakeholders require a 10% rate of return. The company currently has an ROI of 37% and a capital turnover of 2.0. What is Pigeon's sales margin?

A product line at PepsiCo (such as the Pepsi Max product line)is most likely treated as a(n)

The ________ from the balanced scorecard focuses on determining if customers are satisfied.

Companies that decentralize split their operations into different divisions or operating units.

With ________, managers look at the size of the variances between actual results and budgeted amounts in order to determine which variances should be investigated.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters