Question 1

________ measures motivate the manager as well as limit the manager's exposure to risk,reducing the cost of providing incentives.

Accepted Answer

A) Controlling 
B) Motivating 
C) Benchmarking 
D) Sensitive Performance 
E) Preferred Performance 
A) Controlling 
B) Motivating 
C) Benchmarking 
D) Sensitive Performance 
E) Preferred Performance

Question 2

Which of the following is the cost of purchasing an asset today identical to the one currently held?

Accepted Answer

A) Past cost. 
B) Current cost. 
C) Future cost. 
D) Optimal cost. 
E) Suboptimal cost. 
A) Past cost. 
B) Current cost. 
C) Future cost. 
D) Optimal cost. 
E) Suboptimal cost.

Question 3

The ________ component of compensation is high when sensitive performance measures are available and when monitoring the employee's effort is difficult.

Accepted Answer

A) salary 
B) control 
C) motivate 
D) incentive 
E) benchmark 
A) salary 
B) control 
C) motivate 
D) incentive 
E) benchmark

Question 4

Which of the following is not a common alternative definition used to measure investments in divisions used in the construction of accounting-based performance measures?

Accepted Answer

A) Standard output. 
B) Stockholders equity. 
C) Total assets available. 
D) Total assets employed. 
E) Total assets employed minus current liabilities. 
A) Standard output. 
B) Stockholders equity. 
C) Total assets available. 
D) Total assets employed. 
E) Total assets employed minus current liabilities.

Question 5

Astute Intel,a data prospecting company,is compiling data from 2011 and 2012 to compare to the company's 2012 performance in order to assess the best company directives for 2013.The operating income of the company in 2011 was $480,000,but new streamlined practices in 2012 resulted in $360,000 in operating income.In 2011 the gross book value of total assets was $1,840,000 and the accumulated depreciation of total assets was $400,000.In 2012 the gross book value of total assets was $1,930,000,while the accumulated depreciation for that year was $130,000.
Required
Compute the 2011 and 2012 ROI using the net book value of total assets.

Accepted Answer

A) 15.8%;22.0% 
B) 33.3%;20.0% 
C) 18.9%;10.5% 
D) 10.2%;19.9% 
E) 5.7%;15.1% 
A) 15.8%;22.0% 
B) 33.3%;20.0% 
C) 18.9%;10.5% 
D) 10.2%;19.9% 
E) 5.7%;15.1%

Question 6

Which of the following is the alternative definition of total assets available minus the sum of idle assets and assets purchased for future expansion?

Accepted Answer

A) The minimum ROS. 
B) Stockholder's equity. 
C) Total assets available. 
D) Total assets employed. 
E) Total assets employed minus current liabilities. 
A) The minimum ROS. 
B) Stockholder's equity. 
C) Total assets available. 
D) Total assets employed. 
E) Total assets employed minus current liabilities.

Question 7

What is the motivation to have some salary and some performance-based bonus competition?

Accepted Answer

Managers must balance the bene

Question 8

________ is popular because it blends all ingredients of profitability into one percentage and it can be compared with the rate of return on opportunities inside and outside the company.

Accepted Answer

A) ROI 
B) AARR 
C) Return on sales 
D) Residual income 
E) Economic value added 
A) ROI 
B) AARR 
C) Return on sales 
D) Residual income 
E) Economic value added

Question 9

Arboretum Hybrid Greenery Company is assessing the performance of the Georgia outlet for the years 2011 and 2012.In 2011,the operating income for the outlet was $450,000 while in 2012 it was $390,000.In 2011 gross book value of total assets held by the Georgia outlet was $2,400,000 while in 2012 it was $2,160,000.The accumulated depreciation of total assets for 2011 and 2012 was $600,000.
Required
Compute the 2011 and 2012 ROI using the net book value of total assets.

Accepted Answer

A) 25%;25% 
B) 13%;22% 
C) 15%;10% 
D) 30%;12% 
E) 22%;15% 
A) 25%;25% 
B) 13%;22% 
C) 15%;10% 
D) 30%;12% 
E) 22%;15%

Question 10

In the balanced scorecard,stock price,net income,return on sales,return on investment,and economic value added,are measures of the ________.

Accepted Answer

A) employee perspective 
B) customer perspective 
C) financial perspective 
D) learning-and-growth perspective 
E) internal-business-process perspective 
A) employee perspective 
B) customer perspective 
C) financial perspective 
D) learning-and-growth perspective 
E) internal-business-process perspective

Question 11

Why should managers evaluate subunits over multiple years?

Accepted Answer

The manager needs to consider

Question 12

Candy's Chocolate Company's financial management is compiling data in order to assess the favorability of the company's investments.The Boise faction of the company calculates a total investment of $2,000,000 and the operating income is computed to be $380,000 while the required rate of return is 15%.The Butte faction of the company has tallied a total investment of $1,500,000 and an operating income of $230,000 while the Butte faction also has a 15% required rate of return.
Required
Compute the residual income at the Boise faction and the residual income at the company's Butte faction.

Accepted Answer

A) $80,000 
B) $5,000 
C) $15,000 
D) $25,000 
E) $120,000 
A) $80,000 
B) $5,000 
C) $15,000 
D) $25,000 
E) $120,000

Question 13

Organization subunits are the most widely-used performance measures that cover the ________.

Accepted Answer

A) hierarchy of an organization 
B) intermediate-to-long-term horizon 
C) history of an organization's divisions 
D) residual income from past investments 
E) internal framework changes in management structure 
A) hierarchy of an organization 
B) intermediate-to-long-term horizon 
C) history of an organization's divisions 
D) residual income from past investments 
E) internal framework changes in management structure

Question 14

Companies that use ROI or RI generally define investment as the total assets available.

Accepted Answer

A) True 
 B)False

Question 15

What causes the initial method of calculating EVA to be less important than evaluating performance on the basis of improvements in EVA?

Accepted Answer

The ability of management to use EVA to

Question 16

Which of the following describes a situation in which an employee exerts less effort than the owner desires because the owner cannot accurately monitor and enforce the employee's effort?

Accepted Answer

A) Moral hazard. 
B) Employee hazard. 
C) Situational hazard. 
D) Professional hazard. 
E) Occupational hazard. 
A) Moral hazard. 
B) Employee hazard. 
C) Situational hazard. 
D) Professional hazard. 
E) Occupational hazard.

Question 17

To prevent unethical and outright fraudulent behavior,companies need to balance the push for performance resulting from ________,the first of four levers of control,with three other levers.

Accepted Answer

A) strategic goals 
B) belief systems 
C) boundary systems 
D) diagnostic control systems 
E) interactive control systems 
A) strategic goals 
B) belief systems 
C) boundary systems 
D) diagnostic control systems 
E) interactive control systems

Question 18

In the balanced scorecard,customer-service time for making reservations and for check-in and restaurants are measures of the ________.

Accepted Answer

A) employee perspective 
B) customer perspective 
C) financial perspective 
D) learning-and-growth perspective 
E) internal-business-process perspective 
A) employee perspective 
B) customer perspective 
C) financial perspective 
D) learning-and-growth perspective 
E) internal-business-process perspective

Question 19

What can managers do to ensure organizations around the world to enhance the environment,and become socially responsible?

Accepted Answer

Managers can ensure the company is socia

Question 20

Many organizations are increasingly presenting financial and nonfinancial performance measures for their subunits in a single report referred to as the ________.

Accepted Answer

A) balance sheet 
B) balanced scorecard 
C) resource statement 
D) fixed cost flexible-budget 
E) variable unfixed cost flexible-budget 
A) balance sheet 
B) balanced scorecard 
C) resource statement 
D) fixed cost flexible-budget 
E) variable unfixed cost flexible-budget

________ measures motivate the manager as well as limit the manager's exposure to risk,reducing the cost of providing incentives.

Which of the following is the cost of purchasing an asset today identical to the one currently held?

The ________ component of compensation is high when sensitive performance measures are available and when monitoring the employee's effort is difficult.

Which of the following is not a common alternative definition used to measure investments in divisions used in the construction of accounting-based performance measures?

Which of the following is the alternative definition of total assets available minus the sum of idle assets and assets purchased for future expansion?

What is the motivation to have some salary and some performance-based bonus competition?

________ is popular because it blends all ingredients of profitability into one percentage and it can be compared with the rate of return on opportunities inside and outside the company.

In the balanced scorecard,stock price,net income,return on sales,return on investment,and economic value added,are measures of the ________.

Why should managers evaluate subunits over multiple years?

Organization subunits are the most widely-used performance measures that cover the ________.

Companies that use ROI or RI generally define investment as the total assets available.

What causes the initial method of calculating EVA to be less important than evaluating performance on the basis of improvements in EVA?

Which of the following describes a situation in which an employee exerts less effort than the owner desires because the owner cannot accurately monitor and enforce the employee's effort?

To prevent unethical and outright fraudulent behavior,companies need to balance the push for performance resulting from ________,the first of four levers of control,with three other levers.

In the balanced scorecard,customer-service time for making reservations and for check-in and restaurants are measures of the ________.

What can managers do to ensure organizations around the world to enhance the environment,and become socially responsible?

Many organizations are increasingly presenting financial and nonfinancial performance measures for their subunits in a single report referred to as the ________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Filters

Exam 16: Performance Measurement and Compensation

________ measures motivate the manager as well as limit the manager's exposure to risk,reducing the cost of providing incentives.

Which of the following is the cost of purchasing an asset today identical to the one currently held?

The ________ component of compensation is high when sensitive performance measures are available and when monitoring the employee's effort is difficult.

Which of the following is not a common alternative definition used to measure investments in divisions used in the construction of accounting-based performance measures?

Which of the following is the alternative definition of total assets available minus the sum of idle assets and assets purchased for future expansion?

What is the motivation to have some salary and some performance-based bonus competition?

________ is popular because it blends all ingredients of profitability into one percentage and it can be compared with the rate of return on opportunities inside and outside the company.

In the balanced scorecard,stock price,net income,return on sales,return on investment,and economic value added,are measures of the ________.

Why should managers evaluate subunits over multiple years?

Organization subunits are the most widely-used performance measures that cover the ________.

Companies that use ROI or RI generally define investment as the total assets available.

What causes the initial method of calculating EVA to be less important than evaluating performance on the basis of improvements in EVA?

Which of the following describes a situation in which an employee exerts less effort than the owner desires because the owner cannot accurately monitor and enforce the employee's effort?

To prevent unethical and outright fraudulent behavior,companies need to balance the push for performance resulting from ________,the first of four levers of control,with three other levers.

In the balanced scorecard,customer-service time for making reservations and for check-in and restaurants are measures of the ________.

What can managers do to ensure organizations around the world to enhance the environment,and become socially responsible?

Many organizations are increasingly presenting financial and nonfinancial performance measures for their subunits in a single report referred to as the ________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Filters