Question 1

Most Canadian and U.S.companies use the Sarbanes-Oxley Act (SOX)as a framework for evaluating their internal control.

Accepted Answer

A) True 
 B)False

Question 2

National Can Company has three divisions, Eastern, Midwestern, and Western.Because of very different accounting methods and inflation rates in different countries it is considering multiple evaluation measures.Information gathered about the divisions for the year just ended follows:
   The company is currently using a required rate of return of 15 percent.Required:
a.Compute the ROI using both book value and current value for all divisions.Round to three decimal places.
b.Compute residual income using book value and current value for all divisions.
c.Does book value or current value provide the better basis for performance evaluation? Why? Which division is the most successful?

Accepted Answer

a.Book value ROI: Eastern = $120,000/$60

Question 3

An interactive control system is a formal information system that managers use to focus organization attention and learning on key strategic issues.

Accepted Answer

A) True 
 B)False

Question 4

________ describes contexts in which, once risk is shared, the individual fails to make as much effort to avoid harm as when risk was not shared.

Accepted Answer

A) Goal congruence 
B) Moral hazard 
C) Management compensation 
D) Incentive compensation 
E) Executive compensation 
A) Goal congruence 
B) Moral hazard 
C) Management compensation 
D) Incentive compensation 
E) Executive compensation

Question 5

Investment turnover is calculated by dividing investment by revenues.

Accepted Answer

A) True 
 B)False

Question 6

Miller Medical Services provided the following information for its operations in the Hospital Bed Division.   What is the Hospital Bed's residual income?

Accepted Answer

A) $30,000 
B) $85,000 
C)  
D) $1,285,000 
E)  
A) $30,000 
B) $85,000 
C)  
D) $1,285,000 
E)

Most Canadian and U.S.companies use the Sarbanes-Oxley Act (SOX)as a framework for evaluating their internal control.

An interactive control system is a formal information system that managers use to focus organization attention and learning on key strategic issues.

________ describes contexts in which, once risk is shared, the individual fails to make as much effort to avoid harm as when risk was not shared.

Investment turnover is calculated by dividing investment by revenues.

Miller Medical Services provided the following information for its operations in the Hospital Bed Division. What is the Hospital Bed's residual income?

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Filters

Exam 22: Multinational Performance Measurement and Compensation

Most Canadian and U.S.companies use the Sarbanes-Oxley Act (SOX)as a framework for evaluating their internal control.

An interactive control system is a formal information system that managers use to focus organization attention and learning on key strategic issues.

________ describes contexts in which, once risk is shared, the individual fails to make as much effort to avoid harm as when risk was not shared.

Investment turnover is calculated by dividing investment by revenues.

Miller Medical Services provided the following information for its operations in the Hospital Bed Division. What is the Hospital Bed's residual income?

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Filters