Question 1

The flexible budget total cost formula applies only to a specific relevant range.

Accepted Answer

A) True 
 B)False

Question 2

New product development time may be an example of the

Accepted Answer

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

Question 3

Company growth rates (compared to industry growth rates)may be an example of measuring which perspective of the balanced scorecard?

Accepted Answer

A) Financial 
B) Customer 
C) Internal business 
D) Learning and growth 
A) Financial 
B) Customer 
C) Internal business 
D) Learning and growth

Question 4

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

Accepted Answer

A) 3.3 
B) 2.5 
C) 19.4 
D) 1.3 
A) 3.3 
B) 2.5 
C) 19.4 
D) 1.3

Question 5

Izzy Division of Marine Boats Corporation had the following results last year (in thousands).
 
Management's target rate of return is 10% and the weighted average cost of capital is 8%.
What is the Izzy Division's Residual Income (RI)?

Accepted Answer

A) $70,000 
B) $400,000 
C) $700,000 
D) $300,000 
A) $70,000 
B) $400,000 
C) $700,000 
D) $300,000

Question 6

Operations is one factor of the financial perspective of the Balanced Scorecard.

Accepted Answer

A) True 
 B)False

Question 7

Management by exception would dictate that the manager investigate which of the following variances?

Accepted Answer

A) Variances which are less than budget and actual dollar amount or percentage 
B) Variances which are greater than a budget and actual dollar amount or percentage 
C) All unfavorable variances 
D) All favorable and unfavorable variances 
A) Variances which are less than budget and actual dollar amount or percentage 
B) Variances which are greater than a budget and actual dollar amount or percentage 
C) All unfavorable variances 
D) All favorable and unfavorable variances

Question 8

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 Residual Income (RI)?

Accepted Answer

A) $1,045,000 
B) $768,900 
C) $1,155,000 
D) $330,000 
A) $1,045,000 
B) $768,900 
C) $1,155,000 
D) $330,000

Question 9

The entire product line at PepsiCo (such as the Pepsi Max product line)may be classified as a(n)

Accepted Answer

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

Question 10

The CEO of Banana Republic,a large division of The Gap,Inc.may be in charge of 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 11

The use of return on investment (ROI)as a short-term performance measure may lead managers to reject projects that may be profitable for the company as a whole.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) 5.15% 
B) 30.00% 
C) 75.00% 
D) 250.00% 
A) 5.15% 
B) 30.00% 
C) 75.00% 
D) 250.00%

Question 13

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 Residual Income (RI)?

Accepted Answer

A) $70,000 
B) $77,500 
C) $100,000 
D) 126,000 
A) $70,000 
B) $77,500 
C) $100,000 
D) 126,000

Question 14

Thomas Corporation sells a unit of its product for $12.00,resulting in a contribution margin of $7.00 per unit.Fixed costs are budgeted at $50,000 per quarter for volumes up to 12,000 units and $80,000 for volumes exceeding 12,000 units.
Prepare the flexible budget for the next quarter for volume levels of 11,000,13,000,and 16,000 units.

Accepted Answer

The answer of Thomas Corporation sells a unit of its...

Question 15

Companies that decentralize split their operations into different operating segments.

Accepted Answer

A) True 
 B)False

Question 16

Return on investment and revenue growth may be examples of

Accepted Answer

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

Question 17

List the four areas of a balanced scorecard.Describe each area.Define "key performance indicator" (KPI).Give an example of a KPI in each balanced scorecard perspective.

Accepted Answer

1.Financial Perspective─The financial pe

Question 18

Return on Investment (ROI)is defined as operating income divided by current assets.

Accepted Answer

A) True 
 B)False

Question 19

The ________ of the balanced scorecard focuses on how to determine the company's "climate for action."

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

Question 20

Information technology has made many tasks easier,but not all tasks.Which of the following tasks performed by managers requires more critical thinking skills than the others because it is not as dependent upon information technology?

Accepted Answer

A) Sensitivity analysis 
B) Analyzing and investigating the root causes of variances in responsibility center reports 
C) Rolling up individual units' budgets into the companywide budget 
D) Preparing responsibility center performance reports that identify variances between actual and budgeted revenues and costs 
A) Sensitivity analysis 
B) Analyzing and investigating the root causes of variances in responsibility center reports 
C) Rolling up individual units' budgets into the companywide budget 
D) Preparing responsibility center performance reports that identify variances between actual and budgeted revenues and costs

The flexible budget total cost formula applies only to a specific relevant range.

New product development time may be an example of the

Company growth rates (compared to industry growth rates)may be an example of measuring which perspective of the balanced scorecard?

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

Izzy Division of Marine Boats Corporation had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is 8%. What is the Izzy Division's Residual Income (RI)?

Operations is one factor of the financial perspective of the Balanced Scorecard.

Management by exception would dictate that the manager investigate which of the following variances?

The entire product line at PepsiCo (such as the Pepsi Max product line)may be classified as a(n)

The CEO of Banana Republic,a large division of The Gap,Inc.may be in charge of a(n)

The use of return on investment (ROI)as a short-term performance measure may lead managers to reject projects that may be profitable for the company as a whole.

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

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 Residual Income (RI)?

Companies that decentralize split their operations into different operating segments.

Return on investment and revenue growth may be examples of

List the four areas of a balanced scorecard.Describe each area.Define "key performance indicator" (KPI).Give an example of a KPI in each balanced scorecard perspective.

Return on Investment (ROI)is defined as operating income divided by current assets.

The ________ of the balanced scorecard focuses on how to determine the company's "climate for action."

Information technology has made many tasks easier,but not all tasks.Which of the following tasks performed by managers requires more critical thinking skills than the others because it is not as dependent upon information technology?

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 flexible budget total cost formula applies only to a specific relevant range.

New product development time may be an example of the

Company growth rates (compared to industry growth rates)may be an example of measuring which perspective of the balanced scorecard?

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

Izzy Division of Marine Boats Corporation had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is 8%. What is the Izzy Division's Residual Income (RI)?

Operations is one factor of the financial perspective of the Balanced Scorecard.

Management by exception would dictate that the manager investigate which of the following variances?

The entire product line at PepsiCo (such as the Pepsi Max product line)may be classified as a(n)

The CEO of Banana Republic,a large division of The Gap,Inc.may be in charge of a(n)

The use of return on investment (ROI)as a short-term performance measure may lead managers to reject projects that may be profitable for the company as a whole.

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

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 Residual Income (RI)?

Companies that decentralize split their operations into different operating segments.

Return on investment and revenue growth may be examples of

List the four areas of a balanced scorecard.Describe each area.Define "key performance indicator" (KPI).Give an example of a KPI in each balanced scorecard perspective.

Return on Investment (ROI)is defined as operating income divided by current assets.

The ________ of the balanced scorecard focuses on how to determine the company's "climate for action."

Information technology has made many tasks easier,but not all tasks.Which of the following tasks performed by managers requires more critical thinking skills than the others because it is not as dependent upon information technology?

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