Exam 10: Performance Evalulation

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

Management by ________ is the practice that directs executive attention to large budget variances.

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

Sound Design sells its computer speakers for $115 per set. Its variable cost is $70 per set of speakers. Fixed costs are $85,000 per month for volumes up to 2300 sets of speakers. Above 2300 sets, monthly fixed costs are $163,000. What is the budgeted operating income (loss)at a sales level of 2900 sets of speakers per month?

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division return on investment?

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 30% and the weighted average cost of capital is 15%. Its effective tax rate is 40%. What is the division's Return on Investment (ROI)?

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

The Frito-Lay, a stand-alone division of PepsiCo may be classified as a(n)

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division residual income?

Pendant Publishing reported the following results for its Textbook Division: Pendant's target rate of return is 22% and the weighted average cost of capital is 15%. Its effective tax rate is 25%. What is the Textbook Division's capital turnover?

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 $280,000. Whole Grain Corporation's target rate of return is 15%, while its weighted average cost of capital is 7%. The effective tax rate for the company is 20%. What is the Pasta Division's Residual Income (RI)?

The Jazz Division of Heights Recording Corporation had the following results last year. Management's target rate of return is 12% and the weighted average cost of capital is 9%. Its effective tax rate is 40%. Required: a. Calculate the return on investment (ROI). b. Calculate the residual income.

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

A favorable volume variance for sales revenue would indicate that:

Krazy Kayaks sells its entry-level kayaks for $650 each. Its variable cost is $300 per kayak. Fixed costs are $21,000 per month for volumes up to 1700 kayaks. Above 1700 kayaks, monthly fixed costs are $60,000. What is the budgeted operating income at a level of 400 kayaks per month?

Decentralized companies often struggle to achieve goal congruence in an organization.

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 20% and the weighted average cost of capital is 30%. Its effective tax rate is 40%. What is the division's Residual Income (RI)?

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

Residual income is defined as the difference between revenues and expenses.

Large, diversified companies often will sell products/components from one division to another division rather than purchase from an outside supplier.