Johnson Construction Materials Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the data below. \[\begin{array}{l} \text { Revenue Center Performance Report }\\ \begin{array} { | c | r | c | c | c | c | c | c | } \hline & \text { Actual } & \text { Flexible Budget } & & \text { Flexible } & \text { Sales Volume }&& \text { Static } \\ \hline \text { Product type: } & \text { Sales Revenue } & \text { Variance } & \text { U/F } & \text { Budget } & \text { Variance } & \text { U/F } & \text { Budget } \\ \hline 40 \text { inch } & \$ 31,500 & & & \$ 30,000 & & & \$ 40,000 \\ \hline 36 \text { inch long } & \$ 40,150 & & & \$ 42,000 && & \$ 33,000 \\ \hline 36 \text { inch short } & \$ 36,200 & & & \$ 33,000 && & \$ 30,000 \\ \hline 32 \text { inch } & \$ 19,000 & & & \$ 20,000 & & & \$ 28,000 \\ \hline \end{array} \end{array}\] - How much is the flexible budget variance for the 32 inch pipe?

A) $1,000 F B) $1,000 U C) $8,000 U D) $8,000 F A) $1,000 F B) $1,000 U C) $8,000 U D) $8,000 F

Exam 24: Performance Evaluation and the Balanced Scorecard

Johnson Construction Materials Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the data below. Revenue Center Performance Report Actual Flexible Budget Flexible Sales Volume Static Product type: Sales Revenue Variance U/F Budget Variance U/F Budget 40 inch \ 31,500 \ 30,000 \ 40,000 36 inch long \ 40,150 \ 42,000 \ 33,000 36 inch short \ 36,200 \ 33,000 \ 30,000 32 inch \ 19,000 \ 20,000 \ 28,000 - How much is the flexible budget variance for the 32 inch pipe?

(Multiple Choice)

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Question 21

All of the following statements reflect ways in which ROI is used as an evaluation tool EXCEPT:

(Multiple Choice)

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Question 22

Asset turnover is defined as the average total assets divided by the sales revenue.

(True/False)

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Question 23

ROI is calculated using income before taxes, interest expense, and other non-operating income.

(True/False)

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Question 24

Which of the following is a disadvantage of decentralization?

(Multiple Choice)

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Question 25

In a balanced scorecard system, which of the following KPIs would relate to the customer perspective?

(Multiple Choice)

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Question 26

Which of the following would most likely be evaluated using return on investment?

(Multiple Choice)

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Question 27

If a corporate division makes large asset purchases, that would have the effect of lowering ROI.

(True/False)

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Question 28

If upper management is NOT satisfied with a division's asset turnover ratio, they should attempt to decrease operating expenses in order to raise the turnover.

(True/False)

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Question 29

The formula for ROI can be broken down as follows: ROI = profit margin x asset turnover.

(True/False)

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Question 30

Which of the following KPIs are used to evaluate how efficiently a business unit uses assets?

(Multiple Choice)

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Question 31

Which of the following statements BEST describes management by exception?

(Multiple Choice)

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Question 32

The central reservations office at American Airlines is most likely treated as a(n):

(Multiple Choice)

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Question 33

A critical function of the performance report is to focus on which managers must take blame for unfavorable variances.

(True/False)

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Question 34

Many companies use a balanced scorecard for performance evaluation. The balanced scorecard has four business perspectives, and utilizes KPIs to evaluate performance in various areas. Which of the following KPIs would relate to the internal business perspective?

(Multiple Choice)

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Question 35

Which of the following statements BEST describes the purpose of the balanced scorecard approach?

(Multiple Choice)

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Question 36

Many companies use a balanced scorecard for performance evaluation. The balanced scorecard has four business perspectives, and utilizes KPIs to evaluate performance in various areas. Which of the following KPIs would relate to the learning and growth perspective?

(Multiple Choice)

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Question 37

Responsibility accounting performance reports are prepared by which types of business units?

(Multiple Choice)

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Question 38

ROI is used to compare various units of a company to other companies in the industry, but is NOT used to compare various divisions within the same company because that would hinder creative management and competitiveness within the company.

(True/False)

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Question 39

Real-time feedback on quality is a measure pertaining to the balanced scorecard's:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 166

All of the following statements reflect ways in which ROI is used as an evaluation tool EXCEPT:

Asset turnover is defined as the average total assets divided by the sales revenue.

ROI is calculated using income before taxes, interest expense, and other non-operating income.

Which of the following is a disadvantage of decentralization?

In a balanced scorecard system, which of the following KPIs would relate to the customer perspective?

Which of the following would most likely be evaluated using return on investment?

If a corporate division makes large asset purchases, that would have the effect of lowering ROI.

If upper management is NOT satisfied with a division's asset turnover ratio, they should attempt to decrease operating expenses in order to raise the turnover.

The formula for ROI can be broken down as follows: ROI = profit margin x asset turnover.

Which of the following KPIs are used to evaluate how efficiently a business unit uses assets?

Which of the following statements BEST describes management by exception?

The central reservations office at American Airlines is most likely treated as a(n):

A critical function of the performance report is to focus on which managers must take blame for unfavorable variances.

Many companies use a balanced scorecard for performance evaluation. The balanced scorecard has four business perspectives, and utilizes KPIs to evaluate performance in various areas. Which of the following KPIs would relate to the internal business perspective?

Which of the following statements BEST describes the purpose of the balanced scorecard approach?

Many companies use a balanced scorecard for performance evaluation. The balanced scorecard has four business perspectives, and utilizes KPIs to evaluate performance in various areas. Which of the following KPIs would relate to the learning and growth perspective?

Responsibility accounting performance reports are prepared by which types of business units?

ROI is used to compare various units of a company to other companies in the industry, but is NOT used to compare various divisions within the same company because that would hinder creative management and competitiveness within the company.

Real-time feedback on quality is a measure pertaining to the balanced scorecard's:

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Management Accounting

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

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