Question 1

Which performance plan is most tied to company objectives?

Accepted Answer

A) profit sharing 
B) pensions 
C) piece rate 
D) merit pay 
A) profit sharing 
B) pensions 
C) piece rate 
D) merit pay

Question 2

Discuss the rethinking taking place regarding the time frame used in American business performance systems.

Accepted Answer

Historically,American time frames for pe

Question 3

Profit earned in excess of an amount charged for funds committed to a profit center is referred to as ______________________________.

Accepted Answer

The answer of Profit earned in excess of an amount...

Question 4

Charlotte Company
Charlotte Company is a manufacturer of electronic components.The following manufacturing information is available for the month of February:
$\begin{array}{ll}
\text {Good unins manufactured } & 50,000 \
\text {V alue-added hours of manufacturing time } &  30,000\\
\text {Total units manufactured. } &60.000\
\text { Total hours of manufacturing time } &35.000\
\end{array}$

Refer to Charlotte Company.What is the throughput per hour?

Accepted Answer

A) .83 units 
B) 1.43 units 
C) 1.67 units 
D) 2.00 units 
A) .83 units 
B) 1.43 units 
C) 1.67 units 
D) 2.00 units

Question 5

Profit margin ´ Asset Turnover is often referred to as the _________________________.

Accepted Answer

The answer of Profit margin ´ Asset Turnover is often...

Question 6

Non-financial measures are generally less timely than are financial performance measures.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a measure of throughput?

Accepted Answer

A) Processing time/Total time 
B) Good units/Total time 
C) Good units/Processing time 
D) Total units/Total time 
A) Processing time/Total time 
B) Good units/Total time 
C) Good units/Processing time 
D) Total units/Total time

Question 8

Profit margin indicates management's efficiency with regard to sales and expenses.

Accepted Answer

A) True 
 B)False

Question 9

The number of good units or quantity of services that are produced and sold by an organization within a specified time is referred to as process quality yield.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is necessary for any valid performance measurement?

Accepted Answer

A) It must be part of the financial accounting system in use. 
B) It must be quantifiable. 
C) Goal congruence must be promoted by its use. 
D) It must be financial in nature. 
A) It must be part of the financial accounting system in use. 
B) It must be quantifiable. 
C) Goal congruence must be promoted by its use. 
D) It must be financial in nature.

Question 11

Identify the steps to follow in establishing the performance reward system for a company.

Accepted Answer

The steps are in the following order:
 1

Question 12

The ratio of income to sales is referred to as ______________________________.

Accepted Answer

The answer of The ratio of income to sales is...

Question 13

Relative to qualitative performance measures,quantitative performance measures are less

Accepted Answer

A) subject to manipulation. 
B) dependent on accounting information. 
C) effective in the pursuit of organizational goals. 
D) subjective. 
A) subject to manipulation. 
B) dependent on accounting information. 
C) effective in the pursuit of organizational goals. 
D) subjective.

Question 14

Using a single performance evaluation criterion for an investment center

Accepted Answer

A) is most effective because a manager can concentrate on a single goal. 
B) can result in manipulation of the performance measure. 
C) allows multinational investment centers' performances to be equitably compared. 
D) is only appropriate if the criterion is non-monetary. 
A) is most effective because a manager can concentrate on a single goal. 
B) can result in manipulation of the performance measure. 
C) allows multinational investment centers' performances to be equitably compared. 
D) is only appropriate if the criterion is non-monetary.

Question 15

On a balanced scorecard,which of the following would be most appropriate to measure production process integrity?

Accepted Answer

A) Rapid time-to-market of new products 
B) Corporate financial profits 
C) Low employee turnover 
D) Decrease in reworked products 
A) Rapid time-to-market of new products 
B) Corporate financial profits 
C) Low employee turnover 
D) Decrease in reworked products

Question 16

The manager of the Richmond Division of Brazos River Tours is preparing the budget for the upcoming year.At this point,he has determined that average total assets for the upcoming year will equal $4,000,000.The manager is evaluated on the amount of residual income generated by the division.Assume variable costs in the Richmond Division are expected to equal 60% of total sales and fixed costs are expected to equal $400,000.
 a. Compute the saleslevel that would generate a $ 20 \% $ return on investment.
b. Assuming the rate of return is $ 15 \% $, determine the level of sales that would generate $ \$ 200,000 $ of residual income

Accepted Answer

a.The required net income = 20% ´ $4,000

Question 17

The Television Division of Electronics Corporation has the following segment information:
$\begin{array}{ll}
\text { Assets available for use } & \$ 2,500,00  \
\text {T arget rate of return } &  12 \%\\
\text { Residul income } &\$ 300.000\
\end{array}$

What was Television Division's return on investment?

Accepted Answer

A) 12% 
B) 10% 
C) 24% 
D) 20% 
A) 12% 
B) 10% 
C) 24% 
D) 20%

Question 18

How can return on investment result in sub-optimization when it is used as a performance measure?

Accepted Answer

Because performance measures are used to

Question 19

Non-financial measures are generally more appropriate for gauging teamwork than are financial performance measures.

Accepted Answer

A) True 
 B)False

Question 20

Performance measures that reflect an organization's ability to satisfy customers better than rival firms do are referred to as ____________________ measures.

Accepted Answer

The answer of Performance measures that reflect an organization's ability...

Which performance plan is most tied to company objectives?

Discuss the rethinking taking place regarding the time frame used in American business performance systems.

Profit earned in excess of an amount charged for funds committed to a profit center is referred to as ______________________________.

Profit margin ´ Asset Turnover is often referred to as the _________________________.

Non-financial measures are generally less timely than are financial performance measures.

Which of the following is a measure of throughput?

Profit margin indicates management's efficiency with regard to sales and expenses.

The number of good units or quantity of services that are produced and sold by an organization within a specified time is referred to as process quality yield.

Which of the following is necessary for any valid performance measurement?

Identify the steps to follow in establishing the performance reward system for a company.

The ratio of income to sales is referred to as ______________________________.

Relative to qualitative performance measures,quantitative performance measures are less

Using a single performance evaluation criterion for an investment center

On a balanced scorecard,which of the following would be most appropriate to measure production process integrity?

The Television Division of Electronics Corporation has the following segment information: Assets available for use \ 2,500,00 T arget rate of return 12\% \ Residul income \ 300.000 What was Television Division's return on investment?

How can return on investment result in sub-optimization when it is used as a performance measure?

Non-financial measures are generally more appropriate for gauging teamwork than are financial performance measures.

Performance measures that reflect an organization's ability to satisfy customers better than rival firms do are referred to as ____________________ measures.

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

Which performance plan is most tied to company objectives?

Discuss the rethinking taking place regarding the time frame used in American business performance systems.

Profit earned in excess of an amount charged for funds committed to a profit center is referred to as ______________________________.

Profit margin ´ Asset Turnover is often referred to as the _________________________.

Non-financial measures are generally less timely than are financial performance measures.

Which of the following is a measure of throughput?

Profit margin indicates management's efficiency with regard to sales and expenses.

The number of good units or quantity of services that are produced and sold by an organization within a specified time is referred to as process quality yield.

Which of the following is necessary for any valid performance measurement?

Identify the steps to follow in establishing the performance reward system for a company.

The ratio of income to sales is referred to as ______________________________.

Relative to qualitative performance measures,quantitative performance measures are less

Using a single performance evaluation criterion for an investment center

On a balanced scorecard,which of the following would be most appropriate to measure production process integrity?

The Television Division of Electronics Corporation has the following segment information: Assets available for use \ 2,500,00 T arget rate of return 12\% \ Residul income \ 300.000 What was Television Division's return on investment?

How can return on investment result in sub-optimization when it is used as a performance measure?

Non-financial measures are generally more appropriate for gauging teamwork than are financial performance measures.

Performance measures that reflect an organization's ability to satisfy customers better than rival firms do are referred to as ____________________ measures.

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