Exam 10: Performance Evaluation

All of the following are responsibility centers except

Sales margin is a component of the Return on Investment (ROI)calculation.

Employee satisfaction would be an example of measuring which perspective of the balanced scorecard?

The performance evaluation of a profit center is typically based on its

Companies evaluate investment center performance the way they evaluate profit center performance.

The manager of the corporate division of Anthropologie,a large retail clothing chain,may be in charge of a(n)

With ________,managers look at the size of the variances between actual results and budgeted amounts to determine which variances a manager should investigate.

The ultimate purpose of the balanced scorecard is to give management a balanced,comprehensive view of the company's performance.

Cost center performance reports typically focus on the static budget variance.

Management by exception is used to determine which large variances to investigate.

A segment margin is the operating income generated by a profit or investment center before subtracting common allocated fixed costs to the center.

Decentralization allows top management to concentrate on long-term strategic planning.

The regional sales department for Xerox copiers may be classified as a(n)

Describe the four types of responsibility centers.Give a specific example of each of the four types of responsibility centers.

A product line is generally considered a profit center.

Fern Company has a target rate of return of 14%,an ROI of 38%,and capital turnover of 2.5.The sales margin for Fern Company may be closest to

Sound Design sells its computer speakers for $115 per set.Its variable cost is $75 per set of speakers.Fixed costs are $80,000 per month for volumes up to 2,400 sets of speakers.Above 2,400 sets,monthly fixed costs are $115,000.What is the budgeted operating income (loss)at a sales level of 2,600 sets of speakers per month?

The results of a customer survey about customer experiences with the company's services may be an example of measuring which perspective of the balanced scorecard?

The number of on-time deliveries may be an example of measuring which perspective of the balanced scorecard?

To evaluate the performance of a(an)________,a top manager is responsible for revenues,costs,and the efficient use of the assets invested in the division.