Exam 10: Performance Evaluation

Financial performance measures are known as lag indicators.A lag indicator is a performance measure that predicts future performance.

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division residual income?

Management by exception saves management time because managers in revenue centers only focus on unfavorable variances.

Rivera Publishing reported the following results for its Trade Paperback Division: Rivera's target rate of return is 12% and the weighted average cost of capital is 10%. What is the Trade Paperback Division's Return on Investment (ROI)?

Capital turnover is defined as operating income divided by total assets.

The Pasta Division of Whole Grain Corporation had sales of $5,500,000 and operating income of $1,375,000 last year.The total assets of the Pasta Division were $2,750,000,while current liabilities were $330,000.Whole Grain Corporation's target rate of return is 12%,while its weighted average cost of capital is 8%.The effective tax rate for the company is 30%. What is the Pasta Division's sales margin?

For the most recent year,Robin Company reports operating income of $650,000.Robin's sales margin is 10%,and capital turnover is 2.0. What is Robin's return on investment (ROI)?

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division sales margin?

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division capital turnover?

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 Return on Investment (ROI)?

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division return on investment?

Pigeon Forges' stakeholders require a 10% rate of return.The company currently has an ROI of 37% and a capital turnover of 2.0.What is Pigeon's sales margin?