Exam 10: Performance Evaluation

Revenue center performance reports are reports that list the variances between actual sales and budgeted sales.

Using ________ may cause a manager to reject a project that may be profitable to the company as a whole.

The manager of the truck maintenance department at FedEx may be in charge of a(n)

Customer satisfaction,operational efficiency,employee excellence,and financial profitability are often measured as critical factors in the balanced scorecard approach.

Sales territories,such as geographic areas within the country may be classified as a(n)

Goal congruence is a system that evaluates the performance of each responsibility center and its manager.

A performance report of a ________ will only include revenues generated by the center.

An amusement park's games department which reports revenues and expenses may be classified as a(n)

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 sales margin?

The duties of an investment center manager are similar to those of a CFO of an entire company.

A manager is only accountable for expenses in a(n)________ center.

The ________ of the balanced scorecard focuses on continuing to improve and create value.

Pendant Publishing reported the following results for its Textbook Division: Pendant'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 Textbook Division's sales margin?

The entire Corn Flakes product line at Kellogg is may be classified as a(n)

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 capital turnover?

The Southern Division of Amelia Corporation had sales of $6,500,000 and operating income of $1,200,000 last year.The total assets of the Southern Division were $3,000,000,while current liabilities were $450,000.Amelia Corporation's target rate of return is 10%,while its weighted average cost of capital is 6%.The effective tax rate for the company is 30%. What is the Southern Division's Return on Investment (ROI)?

With regard to a static budget instead of a flexible budget,which of the following is true?

The number of warranty claims may be an example of the

Pizza Hut,a stand-alone division of Yum! Brands,may be classified as a(n)

Peddlin' Pete's Cycles sells its entry-level bicycles for $400 each.Its variable cost is $250 per bicycle.Fixed costs are $35,000 per month for volumes up to 1,200 bicycles.Above 1,200 bicycles,monthly fixed costs are $55,000.What is the budgeted operating income at a level of 1,300 bicycles per month?