Question 1

Contingent pay

Accepted Answer

A) is always paid in stock options. 
B) is the sole source of pay an employee receives from his/her employer. 
C) is received in addition to the basic wage and is dependent upon performance exceeding some performance objective. 
D) can only apply to individual performance. 
A) is always paid in stock options. 
B) is the sole source of pay an employee receives from his/her employer. 
C) is received in addition to the basic wage and is dependent upon performance exceeding some performance objective. 
D) can only apply to individual performance.

Question 2

What are five advantages that nonfinancial performance measures have over financial performance measures

Accepted Answer

Answers will vary on this.The major adva

Question 3

Managers should be paid

Accepted Answer

A) on a periodic basis. 
B) based on results achieved. 
C) using ESOPs. 
D) on a piece rate basis. 
A) on a periodic basis. 
B) based on results achieved. 
C) using ESOPs. 
D) on a piece rate basis.

Question 4

Which performance plan best promotes quality of the product or service?

Accepted Answer

A) piece rate 
B) health insurance 
C) pensions 
D) profit sharing 
A) piece rate 
B) health insurance 
C) pensions 
D) profit sharing

Question 5

A company has set a target rate of return of 16% for its investment center.An investment center manager in this company would

Accepted Answer

A) acquire assets that would increase divisional income by more than 16%. 
B) sell all assets that do not generate divisional income of more than 16%. 
C) acquire assets that would increase sales by more than 16%. 
D) acquire any technologically advanced assets that would cause costs to be reduced by 16% or more. 
A) acquire assets that would increase divisional income by more than 16%. 
B) sell all assets that do not generate divisional income of more than 16%. 
C) acquire assets that would increase sales by more than 16%. 
D) acquire any technologically advanced assets that would cause costs to be reduced by 16% or more.

Question 6

Perry Corporation is composed of three operating divisions.Overall,the Perry Corporation has a return on investment of 20%.Division A has a return on investment of 25%.If Perry Corporation.evaluates its managers on the basis of return on investment,how would the Division A manager and the Perry Corporation president react to a new investment that has an estimated return on investment of 23%?
$\text {\underline{Division A } }$                       $\text {\underline{Perry Corporation President } }$
$\text {\underline{Manager } }$

Accepted Answer

A) accept accept 
B) accept reject 
C) reject accept 
D) reject reject 
A) accept accept 
B) accept reject 
C) reject accept 
D) reject reject

Question 7

If sales and expenses both rise by $100,000

Accepted Answer

A) residual income will increase. 
B) return on investment will increase. 
C) return on investment will be unchanged. 
D) asset turnover will decrease 
A) residual income will increase. 
B) return on investment will increase. 
C) return on investment will be unchanged. 
D) asset turnover will decrease

Question 8

Customer measures on the balanced scorecard should be
$\begin{array}{ll}
\underline{\text { Internal}} & \underline{\text { External}}&\underline{\text { Monetary}}&\underline{\text { Non-monetary}}  \

\end{array}$

Accepted Answer

A) yes no no yes 
B) no yes yes no 
C) no yes no yes 
D) yes yes yes yes 
A) yes no no yes 
B) no yes yes no 
C) no yes no yes 
D) yes yes yes yes

Question 9

Buxton Company
One of the products manufactured by Buxton Company is a plastic tray.The information below relates to the Tray Production Department:
$\begin{array}{ll}
\text {Good units produced } &200,000 \
\text {Units started in production } &  2500,000\\
\text {Processing time (budgeted hours) } &425\
\text { Processing time (total hours)} &400\
\text { Value-added proce ssing time } &300\
\end{array}$

Refer to Buxton Company.What is the process quality yield in the Tray Production Department?

Accepted Answer

A) 75% 
B) 44% 
C) 80% 
D) 125% 
A) 75% 
B) 44% 
C) 80% 
D) 125%

Question 10

Profit margin indicates the portion of sales that

Accepted Answer

A) covers fixed expenses. 
B) is not used to cover expenses. 
C) equals contribution margin. 
D) equals product contribution margin. 
A) covers fixed expenses. 
B) is not used to cover expenses. 
C) equals contribution margin. 
D) equals product contribution margin.

Question 11

Thunder Sports Enterprises
The Basketball Division of Thunder Sports Enterprises reported the following financial data for the year:
$\begin{array}{ll}
\text { Assets available for use } & \$ 1,200,000 \text { Book Value } \
& \$ 1,500,000 \text { Market } V \text { alu } \
\text { Residual income } & \$ 108,000\
\text { Return on innvestment } & 14\%
\end{array}$
Refer to Thunder Sports Enterprises.If the manager of the Basketball Division is evaluated based on return on investment,how much would she be willing to pay for an investment that promises to increase net segment income by $60,000?

Accepted Answer

A) $ 108,000 
B) $ 300,000 
C) $ 428,572 
D) $1,200,000 
A) $ 108,000 
B) $ 300,000 
C) $ 428,572 
D) $1,200,000

Contingent pay

What are five advantages that nonfinancial performance measures have over financial performance measures

Managers should be paid

Which performance plan best promotes quality of the product or service?

A company has set a target rate of return of 16% for its investment center.An investment center manager in this company would

If sales and expenses both rise by $100,000

Customer measures on the balanced scorecard should be

Profit margin indicates the portion of sales that

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 14: Performance Measurement, balanced Scorecards, and Performance Rewards

Contingent pay

What are five advantages that nonfinancial performance measures have over financial performance measures

Managers should be paid

Which performance plan best promotes quality of the product or service?

A company has set a target rate of return of 16% for its investment center.An investment center manager in this company would

If sales and expenses both rise by $100,000

Customer measures on the balanced scorecard should be

Profit margin indicates the portion of sales that

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters