Question 1

When inventory sits idle in a department,this would not affect the department's

Accepted Answer

A) processing time. 
B) throughput. 
C) process quality yield. 
D) dollar days. 
A) processing time. 
B) throughput. 
C) process quality yield. 
D) dollar days.

Question 2

In a pay-for-performance plan,defined performance measures must be highly correlated with an organization's operational targets.

Accepted Answer

A) True 
 B)False

Question 3

Return on investment is computed by dividing income by

Accepted Answer

A) contribution margin. 
B) inventory turnover. 
C) assets invested. 
D) long-term assets. 
A) contribution margin. 
B) inventory turnover. 
C) assets invested. 
D) long-term assets.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Non-financial performance measures (NFPMs)are better than financial measures in that NFPMs

Accepted Answer

A) provide a better indication of customer satisfaction. 
B) may better predict the direction of future cash flows. 
C) directly measure how well an organization does those things that create shareholder value. 
D) all of the above 
A) provide a better indication of customer satisfaction. 
B) may better predict the direction of future cash flows. 
C) directly measure how well an organization does those things that create shareholder value. 
D) all of the above

Question 6

Carter Corporation has a target return of 15%.If a prospective investment has an estimated return on investment of 20%,and a residual income of $10,000,what is the estimated cost of the investment?

Accepted Answer

A) $200,000 
B) $ 66,667 
C) $ 50,000 
D) The answer can't be determined from this information. 
A) $200,000 
B) $ 66,667 
C) $ 50,000 
D) The answer can't be determined from this information.

Question 7

Which of the following is not a balanced scorecard category?

Accepted Answer

A) financial measures 
B) environmental measures 
C) business process measures 
D) personnel measures 
A) financial measures 
B) environmental measures 
C) business process measures 
D) personnel measures

Question 8

Mobile Company
Mobile Company is a manufacturer of electronic components.The following manufacturing information is available for the month of May:
$\begin{array}{ll}
\text {Good unins manufactured } & 40,000 \
\text {V alue-added hours of manufacturing time } &  20,000\\
\text {Total units manufactured. } &50.000\
\text { Total hours of manufacturing time } &30.000\
\end{array}$

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

Accepted Answer

A) 1.3 units (rounded) 
B) 2.0 units 
C) 1.8 units 
D) .8 units 
A) 1.3 units (rounded) 
B) 2.0 units 
C) 1.8 units 
D) .8 units

Question 9

Austin Company
Austin Company has established a target rate of return of 15% for all divisions.For the most recent year,Waterloo Division generated sales of $12,000,000 and expenses of $9,000,000.Total assets at the beginning of the year were $7,000,000 and total assets at the end of the year were $9,000,000.
Refer to Austin Company.In the most recent year,what was Waterloo Division's residual income?

Accepted Answer

A) $1,200,000 
B) $1,650,000 
C) $1,800,000 
D) $1,950,000 
A) $1,200,000 
B) $1,650,000 
C) $1,800,000 
D) $1,950,000

Question 10

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 ____________________.

Accepted Answer

The answer of The number of good units or quantity...

Question 11

The Appliance Division
The Appliance Division of Electrotech Corporation reported the following results for a recent year
$\begin{array}{ll}
\text {Sales } & \$ 9,000,000  \
\text {Expenses } &  7,500,000\\
\text { Total assets(1/1) } &6,000.000\
\text { Total assets(12/31) } & 6,200.000
\end{array}$

Refer to the Appliance Division
What was the asset turnover ratio of The Appliance Division?

Accepted Answer

A) 1.475 
B) 3.48 
C) 0.680 
D) 1.23 
A) 1.475 
B) 3.48 
C) 0.680 
D) 1.23

Question 12

In the Du Pont model,profit margin is a ratio of

Accepted Answer

A) income to sales. 
B) income to assets. 
C) sales to income. 
D) sales to assets. 
A) income to sales. 
B) income to assets. 
C) sales to income. 
D) sales to assets.

Question 13

Statistical data about the steps that will create the results desired as referred to as ___________________________________.

Accepted Answer

The answer of Statistical data about the steps that will...

Question 14

Why is it likely that a subordinate manager would be more attentive to certain performance measures than overall corporate objectives to guide his decision making?

Accepted Answer

Managers are evaluated based on how thei

Question 15

An increase in a corporation's target rate would result in a(n)

Accepted Answer

A) increase in residual income. 
B) decrease in return on investment. 
C) decrease in residual income. 
D) decrease in both residual income and return on investment. 
A) increase in residual income. 
B) decrease in return on investment. 
C) decrease in residual income. 
D) decrease in both residual income and return on investment.

Question 16

Qualitative non-financial performance measures

Accepted Answer

A) are usually the most well-received by managers. 
B) often reflect long-term organizational goals better than financial performance measures. 
C) can only be developed in the production area of an organization. 
D) is limited by the number of critical success factors defined by the organization. 
A) are usually the most well-received by managers. 
B) often reflect long-term organizational goals better than financial performance measures. 
C) can only be developed in the production area of an organization. 
D) is limited by the number of critical success factors defined by the organization.

Question 17

Michigan Company
Ann Arbor Division of the Michigan Company has the following statistics for its most recent operations:
$\begin{array}{ll}
\text { Assets available for use (Market Value) } & \$ 3,600,00 \
\text { Assets available for use (Book Value) } & \$ 2,000,00 \
\text { Am Arbor Division's return on investment } & 25 \% \
\text { Am Arbor Division's residual income } & 200,000 \
\text { Return on investment (entire Michigan Company) } & 20 \%
\end{array}$

Refer to Michigan Company.Compute EVA assuming the cost of capital is 10% and the tax rate is 40%.

Accepted Answer

A) $ 90,000 
B) $ 150,000 
C) $0 
D) $ (60,000) 
A) $ 90,000 
B) $ 150,000 
C) $0 
D) $ (60,000)

Question 18

Benchmarks for performance measures may be monetary or non-monetary.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following would not be an appropriate cost driver to measure internal failure?

Accepted Answer

A) design error 
B) product failure 
C) machine reliability 
D) operator error 
A) design error 
B) product failure 
C) machine reliability 
D) operator error

Question 20

If sales and expenses both rise by $100,000,profit margin will

Accepted Answer

A) decrease and asset turnover will decrease. 
B) increase and asset turnover will decrease. 
C) decrease and asset turnover will increase. 
D) increase and asset turnover will increase. 
A) decrease and asset turnover will decrease. 
B) increase and asset turnover will decrease. 
C) decrease and asset turnover will increase. 
D) increase and asset turnover will increase.

When inventory sits idle in a department,this would not affect the department's

In a pay-for-performance plan,defined performance measures must be highly correlated with an organization's operational targets.

Return on investment is computed by dividing income by

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

Non-financial performance measures (NFPMs)are better than financial measures in that NFPMs

Carter Corporation has a target return of 15%.If a prospective investment has an estimated return on investment of 20%,and a residual income of $10,000,what is the estimated cost of the investment?

Which of the following is not a balanced scorecard category?

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 ____________________.

In the Du Pont model,profit margin is a ratio of

Statistical data about the steps that will create the results desired as referred to as ___________________________________.

Why is it likely that a subordinate manager would be more attentive to certain performance measures than overall corporate objectives to guide his decision making?

An increase in a corporation's target rate would result in a(n)

Qualitative non-financial performance measures

Benchmarks for performance measures may be monetary or non-monetary.

Which of the following would not be an appropriate cost driver to measure internal failure?

If sales and expenses both rise by $100,000,profit margin will

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

When inventory sits idle in a department,this would not affect the department's

In a pay-for-performance plan,defined performance measures must be highly correlated with an organization's operational targets.

Return on investment is computed by dividing income by

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

Non-financial performance measures (NFPMs)are better than financial measures in that NFPMs

Carter Corporation has a target return of 15%.If a prospective investment has an estimated return on investment of 20%,and a residual income of $10,000,what is the estimated cost of the investment?

Which of the following is not a balanced scorecard category?

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 ____________________.

In the Du Pont model,profit margin is a ratio of

Statistical data about the steps that will create the results desired as referred to as ___________________________________.

Why is it likely that a subordinate manager would be more attentive to certain performance measures than overall corporate objectives to guide his decision making?

An increase in a corporation's target rate would result in a(n)

Qualitative non-financial performance measures

Benchmarks for performance measures may be monetary or non-monetary.

Which of the following would not be an appropriate cost driver to measure internal failure?

If sales and expenses both rise by $100,000,profit margin will

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