Question 1

Piece rate pay

Accepted Answer

A) is a suitable pay plan for workers engaged in repetitive and complex tasks. 
B) involves a salary plus pay for each unit produced or carried out. 
C) encourages quality output. 
D) does not encourage workers to look at the company's well being. 
A) is a suitable pay plan for workers engaged in repetitive and complex tasks. 
B) involves a salary plus pay for each unit produced or carried out. 
C) encourages quality output. 
D) does not encourage workers to look at the company's well being.

Question 2

Presently,the Software Division of Bennett Publishing Corporation has a profit margin of 30%.If total sales rise by $100,000,the net result will be

Accepted Answer

A) an increase in the profit margin ratio to above 30%. 
B) a decrease in the profit margin ratio to below 30%. 
C) no change in the profit margin ratio. 
D) a change in the profit margin ratio that cannot be determined from this information. 
A) an increase in the profit margin ratio to above 30%. 
B) a decrease in the profit margin ratio to below 30%. 
C) no change in the profit margin ratio. 
D) a change in the profit margin ratio that cannot be determined from this information.

Question 3

Productive capacity is a measure used in computing

Accepted Answer

A) residual income. 
B) net cash flow. 
C) return on investment. 
D) throughput. 
A) residual income. 
B) net cash flow. 
C) return on investment. 
D) throughput.

Question 4

Net cash flow could be used to measure performance in

Accepted Answer

A) cost centers and investment centers. 
B) revenue centers and profit centers. 
C) revenue centers and investment centers. 
D) profit and investment centers. 
A) cost centers and investment centers. 
B) revenue centers and profit centers. 
C) revenue centers and investment centers. 
D) profit and investment centers.

Question 5

Which of the following would be classified as a non-financial critical success factor?
$\begin{array}{llll} 
& \text { Technical } & \text { Manufacturing } & \text { Manufacturing } \
\underline{\text { Quality }} &\underline{ \text { Excellence }} &\underline{ \text { Efficiency} } &\underline{ \text { Effectiveness }}
\end{array}$

Accepted Answer

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

Question 6

A prospective project under consideration by the Internet Division of Communications Corporation.has an estimated residual income of $(20,000).If the project requires an investment of $400,000,the

Accepted Answer

A) project generates a negative return on investment. 
B) project's return on investment is zero. 
C) project's return on investment is 5% less than the company's target rate. 
D) company's target rate is 15% 
A) project generates a negative return on investment. 
B) project's return on investment is zero. 
C) project's return on investment is 5% less than the company's target rate. 
D) company's target rate is 15%

Question 7

The Lumber Division
The Lumber Division of Home Innovations Company reported the following results for a recent year

$\begin{array}{ll}
\text {Sales } & \$ 8,000,000  \
\text {Expenses } &  6,250,000\\
\text { Total assets(1/1) } & 5,000.000\
\text { Total assets(12/31) } & 5,400.000
\end{array}$

Refer to the Lumber Division
What was the profit margin for the Lumber Division?

Accepted Answer

A) 68% 
B) 35% 
C) 32% 
D) 22% 
A) 68% 
B) 35% 
C) 32% 
D) 22%

Question 8

Which of the following steps in the performance reward plan model comes before the others listed?

Accepted Answer

A) set performance rewards 
B) identify performance measures 
C) determine reward 
D) identify critical success factors 
A) set performance rewards 
B) identify performance measures 
C) determine reward 
D) identify critical success factors

Question 9

List the five general criteria that should be considered when designing a performance measurement system.

Accepted Answer

1.The measures should be established to

Question 10

The Jewelry Division of Genuine Gems Company is considering an investment in a new project.The project has an estimated cost of $1,000,000.If Genuine Gems Company has a target rate of return of 12%,how large does the return on investment on this project need to be to generate $150,000 of residual income?

Accepted Answer

A) 15% 
B) 12% 
C) 25% 
D) 27% 
A) 15% 
B) 12% 
C) 25% 
D) 27%

Question 11

Continental Publishing Company
The Magazine Division of Continental Publishing Company had the following financial data for the year:
$\begin{array}{ll}
\text { Assets available for use } & \$ 1,000,000 \text { Book Value } \
& \$ 1,500,000 \text { Market } V \text { alu } \
\text { Residual income } & \$ 100,000\
\text { Return on innvestment } & 15\%
\end{array}$

Refer to Continental Publishing Company.What was the Magazine Division's segment income?

Accepted Answer

A) $150,000 
B) $100,000 
C) $250,000 
D) $ 50,000 
A) $150,000 
B) $100,000 
C) $250,000 
D) $ 50,000

Question 12

The most common external performance measure used for all organizations is financial in nature.

Accepted Answer

A) True 
 B)False

Question 13

Process quality yield reflects the proportion of

Accepted Answer

A) time it takes to make a good unit. 
B) good units to defective units. 
C) total time spent to total time available. 
D) total units produced that are good units. 
A) time it takes to make a good unit. 
B) good units to defective units. 
C) total time spent to total time available. 
D) total units produced that are good units.

Question 14

Economic value added (EVA)applies the target rate of return to the market value of the capital invested in a division.

Accepted Answer

A) True 
 B)False

Question 15

Continental Publishing Company
The Magazine Division of Continental Publishing Company had the following financial data for the year:
$\begin{array}{ll}
\text { Assets available for use } & \$ 1,000,000 \text { Book Value } \
& \$ 1,500,000 \text { Market } V \text { alu } \
\text { Residual income } & \$ 100,000\
\text { Return on innvestment } & 15\%
\end{array}$

Refer to Continental Publishing Company.If expenses increased by $20,000 in the Magazine Division,

Accepted Answer

A) return on investment would decrease. 
B) residual income would increase. 
C) the target rate of return would decrease. 
D) asset turnover would decrease. 
A) return on investment would decrease. 
B) residual income would increase. 
C) the target rate of return would decrease. 
D) asset turnover would decrease.

Question 16

The proportion of good units resulting from activities is referred to as ________________________________________.

Accepted Answer

process qu

Question 17

The Education Innovations Corporation produces puzzles in its Colorado manufacturing plant.The company is currently evaluating ways to improve productivity.The accountant of the firm's parent organization suggested that management implement a new compensation plan based on throughput performance measure as an incentive to increase productivity.To demonstrate how such a measure might work,the accountant gathered the following production data for a recent month:
 $\begin{array}{ll}
\text { Total units attempted } & \$ 6,000,000  \
\text {Good units manufactured } & 4,800,000\
\text { Processing time (total hours) } &800\
\text { Value-added processing time } &600\
\end{array}$

Accepted Answer

a. How many defective units were produce

Question 18

The following information is given for the Corn and Oats Divisions of Wholesome Grains Corporation.
                   Corn       Oats               Sales       $600,000       $300,000               Var. cost of goods sold       200,000       150,000               Fixed manufacturing costs       50,000       40,000               Variable selling       30,000       5,000               Fixed selling (50% allocated)       20,000       4,000               Fixed selling (20% allocated)       50,000        30,000               Assets at book value       600,000       500,000      a. If Wholesome Grains Corporation uses income to evaluate division managers, compute net income that should be used for that purpost given the limited data above.
b. If Wholesome Grains Corporation uses ROI to evaluate division managers and uses historical cost as the investment base, compute the ROI for the Corn and Oats divisions.

Accepted Answer

a. If Wholesome Grains Corporation uses

Question 19

Return on investment (ROI)is a term most often used to express income earned on assets invested in a business unit.A company's return on investment would increase if sales

Accepted Answer

A) increased by the same dollar amount as expenses and total assets increased. 
B) remained the same and expenses were reduced by the same dollar amount that total assets increased. 
C) decreased by the same dollar amount that expenses increased. 
D) and expenses increased by the same percentage that total assets increaseD. 
A) increased by the same dollar amount as expenses and total assets increased. 
B) remained the same and expenses were reduced by the same dollar amount that total assets increased. 
C) decreased by the same dollar amount that expenses increased. 
D) and expenses increased by the same percentage that total assets increaseD.

Question 20

A primary characteristic of a performance management system is

Accepted Answer

A) consistency at all levels in the organization. 
B) adaptability to differing situations in the organization. 
C) efficiency of application to all individuals in the organization. 
D) flexibility to delay rewards although performance objectives have been met. 
A) consistency at all levels in the organization. 
B) adaptability to differing situations in the organization. 
C) efficiency of application to all individuals in the organization. 
D) flexibility to delay rewards although performance objectives have been met.

Piece rate pay

Presently,the Software Division of Bennett Publishing Corporation has a profit margin of 30%.If total sales rise by $100,000,the net result will be

Productive capacity is a measure used in computing

Net cash flow could be used to measure performance in

Which of the following would be classified as a non-financial critical success factor? Technical Manufacturing Manufacturing

A prospective project under consideration by the Internet Division of Communications Corporation.has an estimated residual income of $(20,000).If the project requires an investment of $400,000,the

The Lumber Division The Lumber Division of Home Innovations Company reported the following results for a recent year Sales \ 8,000,000 Expenses 6,250,000 \ Total assets(1/1) 5,000.000 Total assets(12/31) 5,400.000 Refer to the Lumber Division What was the profit margin for the Lumber Division?

Which of the following steps in the performance reward plan model comes before the others listed?

List the five general criteria that should be considered when designing a performance measurement system.

The most common external performance measure used for all organizations is financial in nature.

Process quality yield reflects the proportion of

Economic value added (EVA)applies the target rate of return to the market value of the capital invested in a division.

The proportion of good units resulting from activities is referred to as ________________________________________.

Return on investment (ROI)is a term most often used to express income earned on assets invested in a business unit.A company's return on investment would increase if sales

A primary characteristic of a performance management system is

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

	Corn	Oats
Sales	$600,000	$300,000
Var. cost of goods sold	200,000	150,000
Fixed manufacturing costs	50,000	40,000
Variable selling	30,000	5,000
Fixed selling (50% allocated)	20,000	4,000
Fixed selling (20% allocated)	50,000	30,000
Assets at book value	600,000	500,000

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

Piece rate pay

Presently,the Software Division of Bennett Publishing Corporation has a profit margin of 30%.If total sales rise by $100,000,the net result will be

Productive capacity is a measure used in computing

Net cash flow could be used to measure performance in

Which of the following would be classified as a non-financial critical success factor? Technical Manufacturing Manufacturing

A prospective project under consideration by the Internet Division of Communications Corporation.has an estimated residual income of $(20,000).If the project requires an investment of $400,000,the

The Lumber Division The Lumber Division of Home Innovations Company reported the following results for a recent year Sales \ 8,000,000 Expenses 6,250,000 \ Total assets(1/1) 5,000.000 Total assets(12/31) 5,400.000 Refer to the Lumber Division What was the profit margin for the Lumber Division?

Which of the following steps in the performance reward plan model comes before the others listed?

List the five general criteria that should be considered when designing a performance measurement system.

The most common external performance measure used for all organizations is financial in nature.

Process quality yield reflects the proportion of

Economic value added (EVA)applies the target rate of return to the market value of the capital invested in a division.

The proportion of good units resulting from activities is referred to as ________________________________________.

Return on investment (ROI)is a term most often used to express income earned on assets invested in a business unit.A company's return on investment would increase if sales

A primary characteristic of a performance management system is

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