Exam 10: Performance Evaluation

Lubrizol is a large chemical company that specializes in producing lubricants.Lubrizol was acquired in 2011 for $9 billion by investment holding company Berkshire Hathaway.Lubrizol may be classified as a(n)

A graph of a flexible budget formula reflects fixed costs of $45,000 per month and total costs of $100,000 at a volume of 5,000 units.Assuming the relevant range is 1,000 to 20,000 units,the graph would reflect total monthly costs at 15,000 units of what dollar amount?

The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Management's target rate of return is 12% and the weighted average cost of capital is 9%. What is the Top Hat Division's capital turnover?

Which of the following financial performance measures can be used to compare potential projects of different sizes?

In a(n)________ center,managers are accountable to both revenues and costs.

The following data relates to Haven Corporation and its Northern Division. What is the Northern Division's Residual Income (RI)?

The accounting department in a convenience store chain is likely classified as a cost center.

The difference between actual results and budget results is known as decentralization.

Reardon Enterprises has operating income of $90,000.Its return on investment (ROI)is 40%,while its target rate of return is 15%.The total assets of Reardon Enterprises may be closest to

The ________ perspective of the balanced scorecard helps managers answer the question,"How do we look to shareholders?"

The capital turnover is operating income divided by sales.

Both the static budget and the flexible budget used for performance evaluation are developed before the period of actual production.

Decentralization allows top management to hire workers with expert knowledge in each business unit.

There are two types of responsibility centers.

An example of management by exception occurs when a manager investigates a large variance in a performance report to assign responsibility.

Kleeman Company has a sales margin of 16%,operating income of $336,000,and capital turnover of 3.0.The sales in dollars for Kleeman Company may be closest to

Which term below best fits "a part,segment,or subunit of a company whose manager is accountable for specified activities"?

The following data relates to Logan Electric and its Light Bulb Division. What is the Light Bulb Division's Residual Income (RI)?

The store manager at the Dick's Sporting Goods location in Columbus,Ohio,may be in charge of a(n)

What are the total assets reported by Sparrow Enterprises if operating income is $650,000,its return on investment (ROI)is 40%,and its target rate of return is 10%?