Exam 10: Management Accounting Issues in Multinational Corporations

Assume that an initial investment is $100,000 and that the estimated annual cash flows for the next 5 years are $25,000. What is the internal rate of return (IRR) for this investment?

Assume that the Chinese government allowed the yuan to float relative to the U.S. dollar. Appreciation in the yuan could have an adverse affect on sales of Chinese goods to the U.S. This possible impact on Chinese exports is referred to as:

In designing an effective management control system for a multinational corporation, the accountant should measure factors appropriate for each unit's level of responsibility. Which of the following measures would be appropriate for evaluating the performance of a cost center?

Which of the following is true of the performance evaluation measures adopted by Japanese and U.S. MNCs?

Johnson Ltd. determined that the net present value of an investment in technological improvements at its plant in France would be €10,000,000 if pending litigation was resolved in the company's favor and would be €2,000,000 if the courts ruled against the company. Johnson's attorneys in France assessed the probability of a favorable ruling at 70%. What is the expected net present value of the project?

Which of the following statements is true about performance evaluation in a multinational organization?

A unit of a multinational corporation that creates little or no knowledge but rather uses the ideas and processes developed by other units is referred to as a(n):

Cash flows related to a proposed capital investment project are subject to what kind of risk?

The process of management control by which managers influence others members of the organization to achieve organization's goals is known as: