Question 1

The segment margin of a profit or investment center includes allocated common costs.

Accepted Answer

A) True 
 B)False

Question 2

The return on investment (ROI)ratio measures

Accepted Answer

A) only asset turnover. 
B) only earnings as a percent of sales. 
C) both asset turnover and earnings as a percent of sales. 
D) asset turnover and earnings as a percent of sales,correcting for the effects of differing depreciation methods. 
A) only asset turnover. 
B) only earnings as a percent of sales. 
C) both asset turnover and earnings as a percent of sales. 
D) asset turnover and earnings as a percent of sales,correcting for the effects of differing depreciation methods.

Question 3

What are some common problems encountered in determining ROI?

Accepted Answer

Net income and investment involved can b

Question 4

A statement that identifies fundamental beliefs about what is important to an organization is referred to as a ______________________________.

Accepted Answer

The answer of A statement that identifies fundamental beliefs about...

Question 5

An indicator that reflects the results of past decisions is referred to as a(n)______________________________.

Accepted Answer

The answer of An indicator that reflects the results of...

Question 6

Residual income is used as a performance measure in which of the following types of centers?
$\text {\underline{Revenue } }$         $\text {\underline{Investment } }$           $\text {\underline{Profit } }$

Accepted Answer

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

Question 7

An organization typically develops a values statement before developing a mission statement.

Accepted Answer

A) True 
 B)False

Question 8

Hourly compensation provides a definite link between performance and reward.

Accepted Answer

A) True 
 B)False

Question 9

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 asset turnover ratio of the Lumber Division?

Accepted Answer

A) 1.538 
B) 2.97 
C) 0.650 
D) 1.20 
A) 1.538 
B) 2.97 
C) 0.650 
D) 1.20

Question 10

An increase in productive processing time will increase

Accepted Answer

A) throughput. 
B) process yield. 
C) return on investment. 
D) productive capacity. 
A) throughput. 
B) process yield. 
C) return on investment. 
D) productive capacity.

Question 11

Define residual income.Evaluate residual income as a measure of performance.

Accepted Answer

Residual income is the remainder of net

Question 12

Economic value added (EVA)is focused on short-term performance measurement.

Accepted Answer

A) True 
 B)False

Question 13

Triumph Division of Traveling Fantasies,is evaluated based on residual income generated.In the most recent year,the Triumph Division generated a residual income of $2,000,000 and net income of $5,000,000.The target rate of return for all divisions of Traveling Fantasies is 20%.What was the return on investment for the Triumph Division?

Accepted Answer

A) 40% 
B) 13% 
C) 20% 
D) 33% 
A) 40% 
B) 13% 
C) 20% 
D) 33%

Question 14

On a balanced scorecard,which of the following would be most appropriate to measure customer service?

Accepted Answer

A) Rapid time-to-market of new products 
B) Corporate financial profits 
C) On-time delivery 
D) Decrease in reworked products 
A) Rapid time-to-market of new products 
B) Corporate financial profits 
C) On-time delivery 
D) Decrease in reworked products

Question 15

Total units produced during the period divided by the value-added processing time is referred to as ______________________________.

Accepted Answer

process pr

Question 16

The objectives identified in an organization's values statement must be objective in nature.

Accepted Answer

A) True 
 B)False

Question 17

In the South Division of Occident Company,segment income for the most recent year exceeded residual income by $15,000.Also,return on investment exceeded the target rate of return by 10%.What was the level of investment in the South Division for the most recent year?

Accepted Answer

A) $ 15,000 
B) $100,000 
C) $150,000 
D) An answer can't be determined from this information. 
A) $ 15,000 
B) $100,000 
C) $150,000 
D) An answer can't be determined from this information.

Question 18

Asset turnover measures the effective use of assets relative to revenue production.

Accepted Answer

A) True 
 B)False

Question 19

What are some of the major problems associated with accrual-based accounting performance measures?

Accepted Answer

There are two major problems with accrua

Question 20

Asset turnover equals

Accepted Answer

A) income divided by average assets. 
B) sales divided by assets. 
C) sales divided by average assets. 
D) assets divided by sales. 
A) income divided by average assets. 
B) sales divided by assets. 
C) sales divided by average assets. 
D) assets divided by sales.

The segment margin of a profit or investment center includes allocated common costs.

The return on investment (ROI)ratio measures

What are some common problems encountered in determining ROI?

A statement that identifies fundamental beliefs about what is important to an organization is referred to as a ______________________________.

An indicator that reflects the results of past decisions is referred to as a(n)______________________________.

Residual income is used as a performance measure in which of the following types of centers? $\text {\underline{Revenue } }$ $\text {\underline{Investment } }$ $\text {\underline{Profit } }$

An organization typically develops a values statement before developing a mission statement.

Hourly compensation provides a definite link between performance and reward.

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 asset turnover ratio of the Lumber Division?

An increase in productive processing time will increase

Define residual income.Evaluate residual income as a measure of performance.

Economic value added (EVA)is focused on short-term performance measurement.

On a balanced scorecard,which of the following would be most appropriate to measure customer service?

Total units produced during the period divided by the value-added processing time is referred to as ______________________________.

The objectives identified in an organization's values statement must be objective in nature.

In the South Division of Occident Company,segment income for the most recent year exceeded residual income by $15,000.Also,return on investment exceeded the target rate of return by 10%.What was the level of investment in the South Division for the most recent year?

Asset turnover measures the effective use of assets relative to revenue production.

What are some of the major problems associated with accrual-based accounting performance measures?

Asset turnover equals

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

The segment margin of a profit or investment center includes allocated common costs.

The return on investment (ROI)ratio measures

What are some common problems encountered in determining ROI?

A statement that identifies fundamental beliefs about what is important to an organization is referred to as a ______________________________.

An indicator that reflects the results of past decisions is referred to as a(n)______________________________.

Residual income is used as a performance measure in which of the following types of centers? Revenue ‾ \text {\underline{Revenue } }Revenue ​ Investment ‾ \text {\underline{Investment } }Investment ​ Profit ‾ \text {\underline{Profit } }Profit ​

An organization typically develops a values statement before developing a mission statement.

Hourly compensation provides a definite link between performance and reward.

An increase in productive processing time will increase

Define residual income.Evaluate residual income as a measure of performance.

Economic value added (EVA)is focused on short-term performance measurement.

On a balanced scorecard,which of the following would be most appropriate to measure customer service?

Total units produced during the period divided by the value-added processing time is referred to as ______________________________.

The objectives identified in an organization's values statement must be objective in nature.

In the South Division of Occident Company,segment income for the most recent year exceeded residual income by $15,000.Also,return on investment exceeded the target rate of return by 10%.What was the level of investment in the South Division for the most recent year?

Asset turnover measures the effective use of assets relative to revenue production.

What are some of the major problems associated with accrual-based accounting performance measures?

Asset turnover equals

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

Residual income is used as a performance measure in which of the following types of centers? $\text {\underline{Revenue } }$ $\text {\underline{Investment } }$ $\text {\underline{Profit } }$