Question 1

In selecting non-financial performance measures managers should choose measures that reflect

Accepted Answer

A) qualitative characteristics that point out sub-optimization activities and throughput bottlenecks. 
B) both short-term and long-term measures related to critical success factors. 
C) long-term supplier satisfaction levels. 
D) short-term financial viability. 
A) qualitative characteristics that point out sub-optimization activities and throughput bottlenecks. 
B) both short-term and long-term measures related to critical success factors. 
C) long-term supplier satisfaction levels. 
D) short-term financial viability.

Question 2

Speed of delivery is an example of a leading indicator.

Accepted Answer

A) True 
 B)False

Question 3

The Du Pont model measures ROI as it is affected by

Accepted Answer

A) contribution margin and asset turnover. 
B) profit margin and asset turnover. 
C) asset turnover. 
D) profit margin. 
A) contribution margin and asset turnover. 
B) profit margin and asset turnover. 
C) asset turnover. 
D) profit margin.

Question 4

Which of the following statements is true about the values statement of an organization?

Accepted Answer

A) It is used to formulate the mission statement. 
B) It reflects the organization's culture by identifying beliefs about what is important to the organization. 
C) It focuses on long-range plans for the organization. 
D) The values contained in the statement must be quantifiable. 
A) It is used to formulate the mission statement. 
B) It reflects the organization's culture by identifying beliefs about what is important to the organization. 
C) It focuses on long-range plans for the organization. 
D) The values contained in the statement must be quantifiable.

Question 5

Employee stock ownership in the employees' firm

Accepted Answer

A) will encourage short term earnings growth patterns. 
B) will encourage employees to take a longer term perspective regarding their performance in the company. 
C) is not suitable for hourly or salaried employees. 
D) is common for management in American firms. 
A) will encourage short term earnings growth patterns. 
B) will encourage employees to take a longer term perspective regarding their performance in the company. 
C) is not suitable for hourly or salaried employees. 
D) is common for management in American firms.

Question 6

Texas Company
Texas Company has established a target rate of return of 16% for all divisions.For the most recent year,San Marcos Division generated sales of $10,000,000 and expenses of $7,500,000.Total assets at the beginning of the year were $5,000,000 and total assets at the end of the year were $7,000,000.
Refer to Texas Company.For the most recent year,what was San Marcos Division's return on investment?

Accepted Answer

A) 20.83% 
B) 35.71% 
C) 41.67% 
D) 50.00% 
A) 20.83% 
B) 35.71% 
C) 41.67% 
D) 50.00%

Question 7

Discuss pay-for-performance plans.

Accepted Answer

Employees should be encouraged by compen

Question 8

Residual income is an example of a ____ performance measurement.

Accepted Answer

A) long-term 
B) short-term 
C) qualitative 
D) profit center 
A) long-term 
B) short-term 
C) qualitative 
D) profit center

Question 9

Cultural differences between countries may make performance evaluation in multinational settings more difficult.

Accepted Answer

A) True 
 B)False

Question 10

Texas Company
Texas Company has established a target rate of return of 16% for all divisions.For the most recent year,San Marcos Division generated sales of $10,000,000 and expenses of $7,500,000.Total assets at the beginning of the year were $5,000,000 and total assets at the end of the year were $7,000,000.
Refer to Texas Company.In the most recent year,what was San Marcos Division's residual income?

Accepted Answer

A) $ 960,000 
B) $1,380,000 
C) $1,540,000 
D) $1,700,000 
A) $ 960,000 
B) $1,380,000 
C) $1,540,000 
D) $1,700,000

Question 11

Which of the following pay plans encourages the improvement of the overall company's well-being?

Accepted Answer

A) monthly salary 
B) cafeteria plan 
C) profit sharing 
D) pensions 
A) monthly salary 
B) cafeteria plan 
C) profit sharing 
D) pensions

Question 12

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 productivity in the Tray Production Department?

Accepted Answer

A) 588 
B) 625 
C) 667 
D) 833 
A) 588 
B) 625 
C) 667 
D) 833

Question 13

Oil Division
The Oil Division is one of the operating units of Automotive Solutions,Inc.The following operating data of the division is presented below:
 $\begin{array}{ll}
\text { Sales } & \$ 3,000,00 \
\text { Profit margin } & 10 \% \
\text { Target return } & 15 \% \
\text { Residual income } & \$ 60,000
\end{array}$
 
Refer to the Oil Division.What was the segment income of the Oil Division for the year?

Accepted Answer

Segment income = Pro

Question 14

The ratio of income to assets invested is referred to as ___________________________________.
or

Accepted Answer

return on

Question 15

Which of the following statements about an organization's mission statement is true?

Accepted Answer

A) The mission statement should express an organization's purpose. 
B) The mission statement should identify how an organization will meet the needs of its targeted customers. 
C) The mission statement must be communicated throughout the organization. 
D) All of the statements are true. 
A) The mission statement should express an organization's purpose. 
B) The mission statement should identify how an organization will meet the needs of its targeted customers. 
C) The mission statement must be communicated throughout the organization. 
D) All of the statements are true.

Question 16

Which measure is limited by the fact that it uses accounting income?

Accepted Answer

A) ROI 
B) RI 
C) EVA 
D) All of the above 
A) ROI 
B) RI 
C) EVA 
D) All of the above

Question 17

Which of the following types of employee compensation are tax-exempt?

Accepted Answer

A) contingent pay 
B) profit sharing 
C) cafeteria plans 
D) stock appreciation rights 
A) contingent pay 
B) profit sharing 
C) cafeteria plans 
D) stock appreciation rights

Question 18

Discuss the ways in which management uses flexible budgets.

Accepted Answer

Flexible budgets are important to manage

Question 19

Which of the following responsibility centers may be evaluated on the basis of residual income?

Accepted Answer

A) investment center 
B) revenue center 
C) profit center 
D) cost center 
A) investment center 
B) revenue center 
C) profit center 
D) cost center

Question 20

External performance measures focus on the efficiency and effectiveness of an organization's production process.

Accepted Answer

A) True 
 B)False

In selecting non-financial performance measures managers should choose measures that reflect

Speed of delivery is an example of a leading indicator.

The Du Pont model measures ROI as it is affected by

Which of the following statements is true about the values statement of an organization?

Employee stock ownership in the employees' firm

Discuss pay-for-performance plans.

Residual income is an example of a ____ performance measurement.

Cultural differences between countries may make performance evaluation in multinational settings more difficult.

Which of the following pay plans encourages the improvement of the overall company's well-being?

The ratio of income to assets invested is referred to as ___________________________________. or

Which of the following statements about an organization's mission statement is true?

Which measure is limited by the fact that it uses accounting income?

Which of the following types of employee compensation are tax-exempt?

Discuss the ways in which management uses flexible budgets.

Which of the following responsibility centers may be evaluated on the basis of residual income?

External performance measures focus on the efficiency and effectiveness of an organization's production process.

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

In selecting non-financial performance measures managers should choose measures that reflect

Speed of delivery is an example of a leading indicator.

The Du Pont model measures ROI as it is affected by

Which of the following statements is true about the values statement of an organization?

Employee stock ownership in the employees' firm

Discuss pay-for-performance plans.

Residual income is an example of a ____ performance measurement.

Cultural differences between countries may make performance evaluation in multinational settings more difficult.

Which of the following pay plans encourages the improvement of the overall company's well-being?

The ratio of income to assets invested is referred to as ___________________________________. or

Which of the following statements about an organization's mission statement is true?

Which measure is limited by the fact that it uses accounting income?

Which of the following types of employee compensation are tax-exempt?

Discuss the ways in which management uses flexible budgets.

Which of the following responsibility centers may be evaluated on the basis of residual income?

External performance measures focus on the efficiency and effectiveness of an organization's production process.

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