Exam 10: Performance Evalulation

Ocelot Corporation had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 5%. Its effective tax rate is 40%. What is the division's Return on Investment (ROI)?

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

Flexible budgets are budgets that summarize cost and revenue information for a single volume level.

New product development time may be an example of the

The manager of the accounting department that may be evaluated on his or her ability to control expenses at Adidas may be in charge of a(n)

The Pasta Division of Whole Grain Corporation had sales of $9,000,000 and operating income of $1,620,000 last year. The total assets of the Pasta Division were $2,500,000, while current liabilities were $350,000. Whole Grain Corporation's target rate of return is 18%, while its weighted average cost of capital is 10%. The effective tax rate for the company is 45%. What is the Pasta Division's Return on Investment (ROI)?

Which of the strategies listed are used to determine a transfer price?

Camping World Corporation has operating income of $78,000, a sales margin of 15%, and capital turnover of 2.6. The return on investment (ROI)for Camping World Corporation may be closest to

Residual Income (RI)equals operating income less minimum acceptable income.

An unfavorable flexible budget variance for variable expenses would indicate that:

A company's flexible budget for 93,000 units of production showed sales of $300,000; variable costs of $150,000; and fixed costs of $90,000. What net operating income would you expect the company to earn if it produces and sells 98,000 units? (Assume 98,000 units is in the relevant range.)

Transfer cost is the term used to describe the amount one division pays to another division within the same company to purchase a component part.

An unfavorable volume variance for variable expenses would indicate that:

An unfavorable variance causes operating income to be _______________ the budgeted operating income?

The difference between the actual revenues and expenses and the master budget is known as a

The number of warranty claims may be an example of the

The number of new services offered during the period may be an example of measuring which perspective of the balanced scorecard?

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

KPI in the Balanced Scorecard stands for Knowledge Profitability Index.

An unfavorable variances causes operating income to be higher than budgeted.