Exam 14: Decentralisation and Modern Performance Management Systems the Balanced Scorecard

Which of the following forms of manager compensation most likely encourages managers to take a long-term view of how their performance ties in with the long-term goals of a company?

The balanced scorecard approach looks at a company's performance from four perspectives.Those perspectives are:

When comparing two different investment alternatives,which of the following measures for each alternative would be the best to use?

WSR Inc. WSR Inc. sells a variety of drink and food products including potato chips and soft drink. The segmented income statements for these two products are as follows: Sales \ 800000 \ 900000 Variable expenses Contribution margin 600000 585000 Traceable fixed expense Segment margin WSR’s management is considering a special advertising campaign that will run during a major sporting event. The advertising campaign is expected to cost $30 000 and only one product can be featured. In-house marketing studies show that the campaign could increase sales of the soft drink division by $200 000 or increase sales of the chips division by $275 000. -What will be the overall net effect on the company's total profits if the advertising focuses on chips?

Austin Inc.has a return on investment (ROI)of 10.2 per cent.The company's margin was 60 per cent and its turnover was 17. How do margin and turnover relate back to ROI and what kinds of information do each of them provide?

What are the three types of compensation that managers typically receive?

A local chain department store grants each of its store managers the authority to make buying decisions for their stores.Granting managers this kind of authority is found in which type of organisation?

Fleming Inc.manufactures and sells wooden bookshelves.Which of the following steps in the manufacturing cycle would be considered non-value added time?

Which of the following statements is true regarding a company's segment margin?

When defining net operating income for return on investment (ROI)purposes,which of the following items should not be included?

Thompson Ltd.has a division that generated $5 000 000 in sales and operating income of $1 000 000 on average operating assets of $2 800 000.The company's management team expects division managers to generate sufficient income to guarantee a minimum return of 15 per cent. Required: A. What is the division's residual income? B. What is the division's return on investment (ROI)?

Which types of quality costs are incurred after a defective product is delivered to a customer?

All else being equal,which of the following items would increase a company's return on investment (ROI)?

Bauer Enterprises Ltd.has two product lines: B-40 and B-100.Revenue and cost information for each of the product lines for 2008 are as follows: Selling price per unit \3 0 \5 0 Variable costs per unit 12 24 Traceable fixed expenses \2 0000 \5 0000 In 2008,Bauer had common fixed expenses of $80 000,and the company produced and sold 10 000 units of B-40 and 8000 units of B-100. Required: Prepare a segmented income statement with a column for each product line and the total company.

A company has computed that their 'margin' is .18.Which of the following statements is the best interpretation of these results?

FMI is a car manufacturer.Recently,they have had to recall approximately 6000 cars due to potential brake pad malfunction.The costs to inspect and replace the brake pads would most likely be classified as which type of quality cost?

Manufacturing cycle efficiency (MCE)is calculated as follows:

Which type of manager would be allowed to decide whether or not new manufacturing equipment should be purchased?

Which of the following items is not part of the calculation for segment margin?

Bryan Manufacturing had sales of $4 000 000 and net operating income of $700 000.Operating assets during the year averaged $600 000.The manager of Hardcastle is considering the purchase of a new machine which is expected to increase average operating assets by 8 per cent.If the new machine is purchased,the company's new return on investment (ROI)would be: