Question 1

The following data relates to Logan Electric and its Light Bulb Division.
 
What is the Light Bulb Division's capital turnover?

Accepted Answer

A) 10.0 
B) 4.0 
C) 2.5 
D) 5.5 
A) 10.0 
B) 4.0 
C) 2.5 
D) 5.5 C

Question 2

Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows:
 
What is the Photocopier Division's residual income?

Accepted Answer

A) $1,686,400 
B) $353,600 
C) $1,156,000 
D) $1,690,000 
A) $1,686,400 
B) $353,600 
C) $1,156,000 
D) $1,690,000 A

Question 3

The ________ of the balanced scorecard focuses on determining if customers are satisfied.

Accepted Answer

A) internal business perspective 
B) learning and growth perspective 
C) customer perspective 
D) financial perspective 
A) internal business perspective 
B) learning and growth perspective 
C) customer perspective 
D) financial perspective C

Question 4

Troy Company budgeted $12 million for customer service costs,but actually spent only $10 million.Which of the following statements is the best course of action for management to take in this instance?

Accepted Answer

A) Management will investigate this $2 million favorable variance to ensure that the cost savings do not reflect skimping on customer service. 
B) Because this $2 million variance is favorable,management does not need to investigate further. 
C) Management will investigate this $2 million unfavorable variance to try to identify and correct the problem. 
D) Management should not investigate every major variance,especially an unfavorable variance. 
A) Management will investigate this $2 million favorable variance to ensure that the cost savings do not reflect skimping on customer service. 
B) Because this $2 million variance is favorable,management does not need to investigate further. 
C) Management will investigate this $2 million unfavorable variance to try to identify and correct the problem. 
D) Management should not investigate every major variance,especially an unfavorable variance.

Question 5

Which of the following is the operating income an investment center generates before subtracting common fixed costs that are allocated to the center?

Accepted Answer

A) Sales volume variance 
B) Segment margin 
C) Return on investment (ROI) 
D) Return on assets (RO
A)  
A) Sales volume variance 
B) Segment margin 
C) Return on investment (ROI) 
D) Return on assets (RO
A)

Question 6

The Frito-Lay,a stand-alone division of PepsiCo may be classified as a(n)

Accepted Answer

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

Question 7

The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year.Shareholders require a return of 7%.Management calculated a weighted-average cost of capital (WACC)of 5%.Allied's corporate tax rate is 30%.
 
What is the division's capital turnover?

Accepted Answer

A) 0.47 
B) 4.00 
C) 8.57 
D) 2,50 
A) 0.47 
B) 4.00 
C) 8.57 
D) 2,50

Question 8

Management by ________ is the practice that directs executive attention to large budget variances.

Accepted Answer

A) control 
B) objective 
C) exception 
D) analysis 
A) control 
B) objective 
C) exception 
D) analysis

Question 9

Raymond Corporation has an ROI of 31%,total assets of $6,300,000,and current liabilities of $820,000.What is Raymond Corporation's operating income?

Accepted Answer

A) $25,200 
B) $2,645,161 
C) $20,322,581 
D) $1,953,000 
A) $25,200 
B) $2,645,161 
C) $20,322,581 
D) $1,953,000

Question 10

All four perspectives must always be included on each individual company's balanced scorecard.

Accepted Answer

A) True 
 B)False

Question 11

Davis Corporation manufactures and sells portable radios.The radio sells for $35 per unit and its variable costs per unit are $30.Fixed costs are $64,000 per month for sales volumes up to 32,000 radios.If more than 32,000 radios are sold,the fixed costs will be $83,000.The flexible budget would reflect what monthly operating income for a sales volume of 41,000 radios?

Accepted Answer

A) $141,000 
B) $122,000 
C) $1,435,000 
D) $205,000 
A) $141,000 
B) $122,000 
C) $1,435,000 
D) $205,000

Question 12

A flexible budget is a budget prepared for multiple volume levels.

Accepted Answer

A) True 
 B)False

Question 13

List and describe reasons why a company might choose to decentralize its operations.

Accepted Answer

1.Frees top management's time-by delegat

Question 14

Management by exception directs management's attention to a large variance between an actual and budget amount in a performance report.

Accepted Answer

A) True 
 B)False

Question 15

Civic Corporation provided the following partially completed monthly flexible budget.Complete the flexible budget.

Accepted Answer

The answer of Civic Corporation provided the following partially completed...

Question 16

The security department that is evaluated on its ability to control costs when the company compares actual costs to budget costs at a department store chain may be classified as a(n)

Accepted Answer

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

Question 17

In a flexible budget,total fixed costs do not change as production volume changes.

Accepted Answer

A) True 
 B)False

Question 18

Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands).Management's target rate of return is 15% and the weighted average cost of capital is 10%.Its effective tax rate is 35%.
 
What is the division's Return on Investment (ROI)?

Accepted Answer

A) 400.00% 
B) 20.00% 
C) 80.00% 
D) 32.80% 
A) 400.00% 
B) 20.00% 
C) 80.00% 
D) 32.80%

Question 19

Corbin Company had the following financial results for last month.What type of responsibility center do these financial results reflect?

Accepted Answer

A) Revenue center 
B) Investment center 
C) Profit center 
D) Cost center 
A) Revenue center 
B) Investment center 
C) Profit center 
D) Cost center

Question 20

What will happen to return on investment (ROI)if current assets decrease while everything else remains the same?

Accepted Answer

A) ROI will decrease over time. 
B) ROI will increase over time. 
C) ROI will not be affected. 
D) We cannot determine the direction of the effect from the information provided. 
A) ROI will decrease over time. 
B) ROI will increase over time. 
C) ROI will not be affected. 
D) We cannot determine the direction of the effect from the information provided.

The following data relates to Logan Electric and its Light Bulb Division. What is the Light Bulb Division's capital turnover?

Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: What is the Photocopier Division's residual income?

The ________ of the balanced scorecard focuses on determining if customers are satisfied.

Troy Company budgeted $12 million for customer service costs,but actually spent only $10 million.Which of the following statements is the best course of action for management to take in this instance?

Which of the following is the operating income an investment center generates before subtracting common fixed costs that are allocated to the center?

The Frito-Lay,a stand-alone division of PepsiCo may be classified as a(n)

The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year.Shareholders require a return of 7%.Management calculated a weighted-average cost of capital (WACC)of 5%.Allied's corporate tax rate is 30%. What is the division's capital turnover?

Management by ________ is the practice that directs executive attention to large budget variances.

Raymond Corporation has an ROI of 31%,total assets of $6,300,000,and current liabilities of $820,000.What is Raymond Corporation's operating income?

All four perspectives must always be included on each individual company's balanced scorecard.

A flexible budget is a budget prepared for multiple volume levels.

List and describe reasons why a company might choose to decentralize its operations.

Management by exception directs management's attention to a large variance between an actual and budget amount in a performance report.

Civic Corporation provided the following partially completed monthly flexible budget.Complete the flexible budget.

The security department that is evaluated on its ability to control costs when the company compares actual costs to budget costs at a department store chain may be classified as a(n)

In a flexible budget,total fixed costs do not change as production volume changes.

Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands).Management's target rate of return is 15% and the weighted average cost of capital is 10%.Its effective tax rate is 35%. What is the division's Return on Investment (ROI)?

Corbin Company had the following financial results for last month.What type of responsibility center do these financial results reflect?

What will happen to return on investment (ROI)if current assets decrease while everything else remains the same?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 10: Performance Evaluation

The following data relates to Logan Electric and its Light Bulb Division. What is the Light Bulb Division's capital turnover?

Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: What is the Photocopier Division's residual income?

The ________ of the balanced scorecard focuses on determining if customers are satisfied.

Troy Company budgeted $12 million for customer service costs,but actually spent only $10 million.Which of the following statements is the best course of action for management to take in this instance?

Which of the following is the operating income an investment center generates before subtracting common fixed costs that are allocated to the center?

The Frito-Lay,a stand-alone division of PepsiCo may be classified as a(n)

The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year.Shareholders require a return of 7%.Management calculated a weighted-average cost of capital (WACC)of 5%.Allied's corporate tax rate is 30%. What is the division's capital turnover?

Management by ________ is the practice that directs executive attention to large budget variances.

Raymond Corporation has an ROI of 31%,total assets of $6,300,000,and current liabilities of $820,000.What is Raymond Corporation's operating income?

All four perspectives must always be included on each individual company's balanced scorecard.

A flexible budget is a budget prepared for multiple volume levels.

List and describe reasons why a company might choose to decentralize its operations.

Management by exception directs management's attention to a large variance between an actual and budget amount in a performance report.

Civic Corporation provided the following partially completed monthly flexible budget.Complete the flexible budget.

The security department that is evaluated on its ability to control costs when the company compares actual costs to budget costs at a department store chain may be classified as a(n)

In a flexible budget,total fixed costs do not change as production volume changes.

Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands).Management's target rate of return is 15% and the weighted average cost of capital is 10%.Its effective tax rate is 35%. What is the division's Return on Investment (ROI)?

Corbin Company had the following financial results for last month.What type of responsibility center do these financial results reflect?

What will happen to return on investment (ROI)if current assets decrease while everything else remains the same?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters