Graham Pottery Inc. Graham Pottery Inc. produces an item that gives rise to the following activities: $\begin{array} { l c } \text { Activity } & \text { Hours } \\ \hline \text { Processing (two departments) } & 25 \\ \text { Inspecting } & 2 \\ \text { Rework } & 1 \\ \text { Moving (three moves) } & 6 \\ \text { Waiting (for the second process) } & 18 \\ \text { Storage (before delivery to the customer) } & 24 \end{array}$ -The manufacturing cycle efficiency is:

A) 44.7 per cent B) 32.9 per cent C) 68.4 per cent D) 36.8 per cent A) 44.7 per cent B) 32.9 per cent C) 68.4 per cent D) 36.8 per cent

Picture Puzzle Company The Picture Puzzle Company has the following estimates for producing a single batch of 500 custom-made puzzles: $\begin{array}{lc} \text { Wait time } & 10 \text { days } \\ \text { Inspection time } & 1 \text { hour } \\ \text { Processing time } & 3 \text { days } \\ \text { Move time } & 1 \text { day } \end{array}$ -The total non-value-added time is:

A) 11 days and 1 hour B) 11 days C) 1 day D) 10 days A) 11 days and 1 hour B) 11 days C) 1 day D) 10 days

Astin Ltd.requires all of its divisions to maintain a return on investment (ROI)of at least 25 per cent.Over the past several years,one of Astin's divisions has consistently had the following information: $\begin{array}{lr} \text {Sales } &\$2000000\\ \text {Net operating income } &500000\\ \end{array}$ In order to achieve the company's ROI goals,this division should do which of the following?

A) Maintain average operating assets of $2 000 000 or more. B) Maintain average operating assets of $2 000 000 or less. C) Maintain average operating assets of $125 000 or more. D) Maintain average operating assets of $125 000 or less. A) Maintain average operating assets of $2 000 000 or more. B) Maintain average operating assets of $2 000 000 or less. C) Maintain average operating assets of $125 000 or more. D) Maintain average operating assets of $125 000 or less.

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

The manager of a local retail store tells you that,'An unprofitable segment should always close'.Do you agree or disagree with this statement and why?

(Essay)

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Question 41

Under what type of situation would return on investment (ROI)be a better performance measure than residual income and vice versa?

(Essay)

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Question 42

As a new manager of a production division,you have made the decision to incur more quality costs than the previous manager of the division incurred.How can you defend quality costs to executive management?

(Essay)

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Question 43

Hedding Inc.has two divisions: classic and modern.In the most recent year,the classic division reported sales of $900 000 and an asset turnover of 4.0.The rate of return on average invested assets was 16 per cent. Required: What was the classic division's margin?

(Essay)

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Question 44

Which two items are typically omitted from 'net operating income' for return on investment (ROI)purposes.Why are these two items omitted?

(Essay)

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Question 45

What is the main idea underlying responsibility accounting?

(Essay)

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Question 46

Which of the following would be the best measure of performance for a profit centre?

(Multiple Choice)

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Question 47

The manager of a profit centre should not be responsible for which of the following types of decisions?

(Multiple Choice)

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Question 48

Graham Pottery Inc. Graham Pottery Inc. produces an item that gives rise to the following activities: Activity Hours Processing (two departments) 25 Inspecting 2 Rework 1 Moving (three moves) 6 Waiting (for the second process) 18 Storage (before delivery to the customer) 24 -The manufacturing cycle efficiency is:

(Multiple Choice)

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Question 49

Picture Puzzle Company The Picture Puzzle Company has the following estimates for producing a single batch of 500 custom-made puzzles: Wait time 10 days Inspection time 1 hour Processing time 3 days Move time 1 day -The total non-value-added time is:

(Multiple Choice)

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Question 50

Which of the following is often not a disadvantage of decentralisation?

(Multiple Choice)

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Question 51

Both traditional financial measures of performance and the balanced scorecard approach examine financial factors,but how does their appraisal of financial factors differ?

(Essay)

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Question 52

Which of the following statements about the balanced scorecard approach is true?

(Multiple Choice)

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Question 53

Boone Manufacturing Boone Manufacturing produces a variety of lamp shades which it sells to retail stores throughout the country. The following data is available for the year: -What is the total throughput per production hour?

(Multiple Choice)

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Question 54

Which of the following is an advantage of decentralisation?

(Multiple Choice)

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Question 55

Ramsey Automotive Ltd.had sales of $2 000 000 and net operating income of $600 000 last year.Operating assets last year averaged $1 000 000.The company's manager is considering the purchase of a new machine which is expected to increase average operating assets by 6 per cent. Required: Calculate the company's new ROI if the new machine is purchased.

(Essay)

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Question 56

Astin Ltd.requires all of its divisions to maintain a return on investment (ROI)of at least 25 per cent.Over the past several years,one of Astin's divisions has consistently had the following information: Sales \2 000000 Net operating income 500000 In order to achieve the company's ROI goals,this division should do which of the following?

(Multiple Choice)

4.9/5

(40)

Question 57

The manager of a local department store,Nelda Smith,has just been informed that she will start being evaluated on the basis of her segment's ROI in relation to the ROI values of other department stores owned by her employer.Give three ways she can increase her segment's ROI?

(Essay)

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Question 58

How do the roles of cost centre managers,revenue centre managers,profit centre managers,and investment centre managers differ?

(Essay)

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Question 59

Which of the following items is often most difficult to allocate to a particular segment?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 168

The manager of a local retail store tells you that,'An unprofitable segment should always close'.Do you agree or disagree with this statement and why?

Under what type of situation would return on investment (ROI)be a better performance measure than residual income and vice versa?

As a new manager of a production division,you have made the decision to incur more quality costs than the previous manager of the division incurred.How can you defend quality costs to executive management?

Hedding Inc.has two divisions: classic and modern.In the most recent year,the classic division reported sales of $900 000 and an asset turnover of 4.0.The rate of return on average invested assets was 16 per cent. Required: What was the classic division's margin?

Which two items are typically omitted from 'net operating income' for return on investment (ROI)purposes.Why are these two items omitted?

What is the main idea underlying responsibility accounting?

Which of the following would be the best measure of performance for a profit centre?

The manager of a profit centre should not be responsible for which of the following types of decisions?

Picture Puzzle Company The Picture Puzzle Company has the following estimates for producing a single batch of 500 custom-made puzzles: Wait time 10 days Inspection time 1 hour Processing time 3 days Move time 1 day -The total non-value-added time is:

Which of the following is often not a disadvantage of decentralisation?

Both traditional financial measures of performance and the balanced scorecard approach examine financial factors,but how does their appraisal of financial factors differ?

Which of the following statements about the balanced scorecard approach is true?

Boone Manufacturing Boone Manufacturing produces a variety of lamp shades which it sells to retail stores throughout the country. The following data is available for the year: -What is the total throughput per production hour?

Which of the following is an advantage of decentralisation?

The manager of a local department store,Nelda Smith,has just been informed that she will start being evaluated on the basis of her segment's ROI in relation to the ROI values of other department stores owned by her employer.Give three ways she can increase her segment's ROI?

How do the roles of cost centre managers,revenue centre managers,profit centre managers,and investment centre managers differ?

Which of the following items is often most difficult to allocate to a particular segment?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, cost Terminology and Cost Flows

Cost Behaviour

Job Costing and Overhead Costing Systems

Process Costing Systems

Service and Operations Costing

Departmental Overhead Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investmentdecisions

Fixed and Rolling Budgets for Planning and Decision Making

Management Accounting for Cost Control and Performance Evaluation Flexible Budgets and Variance Analysis

Accounting for Sustainability Social Reporting,environmental Reporting and Management Accounting

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