Exam 10: Performance Evalulation

A product line is generally considered a profit center.

Marble Countertops and Cabinet Manufacturing produces marble inserts to accommodate the marble countertops. The Marble Division can use the MAR1 insert that is manufactured in the company's Cabinet Division because there is excess capacity. The standard market price to produce the MAR1 insert is $1,400. The managerial accountant reported the following manufacturing cost and variable expense information: What is the highest price that Marble Countertops and Cabinet Manufacturing should pay in the outside market? What is the lowest acceptable transfer price to the Cabinet Division? What would happen if the managerial accountant produced the part below the acceptable transfer price?

The capital turnover is operating income divided by sales.

The manager of a local CVS drugstore that is in accountable to increase sales, revenue, and controlling costs may be in charge of a(n)

Which of the following may cause a favorable sales volume variance of the revenues?

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 $340,000. Whole Grain Corporation's target rate of return is 18%, while its weighted average cost of capital is 15%. The effective tax rate for the company is 40%. What is the Pasta Division's sales margin?

Goal congruence is more likely to occur at a centralized organization rather than a decentralized organization.

The number of new products developed may be an example of measuring which perspective of the balanced scorecard?

The reservations department that has self-contained sales operations at a car rental chain may be classified as a(n)

The following data relates to Logan Electric and its Light Bulb Division. What is the Light Bulb Division's sales margin?

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

Assume the Hiking Shoes division of the All About Shoes 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 25%. What is the division's sales margin?

The number of repeat customers may be an example of measuring which perspective of the balanced scorecard?

The human resources department for Kohl's Department Stores may be classified as a(n)

Boat Hull Manufacturing produces boat parts at the manufacturing facility in Virginia. The managerial accountant reported that Boat Hull Manufacturing manufactures parts to repair the container ships that import products from China. The main part that Boat Hull Manufacturing produces is the T24 part. The Port Department produces the T24 part at the Boat Hull Manufacturing facility in Virginia. The managerial accountant reported that the Deport Department could also produce the T24 part because there is excess capacity at the facility. The managerial accountant reported the current market price of the T24 part is $420 and reported the following manufacturing cost and expenses data: What is the highest transfer price the selling division would receive, and the buying division would pay, for the T24 part?

Sound Design sells its computer speakers for $135 per set. Its variable cost is $85 per set of speakers. Fixed costs are $85,000 per month for volumes up to 2600 sets of speakers. Above 2600 sets, monthly fixed costs are $126,000. What is the budgeted operating income (loss)at a sales level of 2200 sets of speakers per month?

Everyone Deserves to Smile mobile dentist office budgeted for 4305 patient visits a year. Everyone Deserves to Smile actually saw 4400 patients during the year and they have provided the following data: Based on the given information, what is the volume variance for personnel expenses?

Employee satisfaction would 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 residual income?

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.