Exam 24: Performance Evaluation and the Balanced Scorecard

Tavares Manufactured Homes Company has a sales division which submits a monthly performance report as a revenue center. A partially completed performance report appears below: How much is the sales volume variance for Model B3?

One perspective of the balanced scorecard focuses on revenue growth and productivity. Which of the four perspectives is this?

A good balanced scorecard focuses only on leading indicators, because lagging indicators that relate to past performance are not important for the scorecard.

Westhaven Company has a warehousing unit which operates as a cost center. They prepare monthly performance reports. The report for February is shown here: Westhaven uses the management by exception approach. On which of the following variances would the company focus first for investigation and explanation?

Union Company's corporate payroll department is a cost center, and prepares monthly performance reports. Union uses the management by exception approach, based on the dollar amounts of the variances. Based on the performance report for the payroll department shown below, on which of the following variances would the company focus first for investigation and explanation?

Which of the following would most likely be evaluated using return on investment?

Which of the following statements MOST accurately describes a company's weighted average cost of capital?

Waycross Construction Company has a pipeyard operation which is run as a cost center. They are preparing a performance report for the month of March and have provided the data below:

The human resources department would most likely be considered a(n):

The formula for EVA (economic value added)is:

Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter. How much is the variance for variable expenses?

One part of the balanced scorecard helps management answer the question: "How do we look to shareholders?" Which of the four perspectives is being described here?

When measuring a company's performance, which of the following is NOT a lag indicator?

Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter. Please complete the report in the format below. Profit Center Performance Report

Huntswell Corporation has two major divisions-Agricultural Products and Industrial Products. Data for the year just finished is as follows: For the Industrial Division, how much is the profit margin?

If upper management is NOT satisfied with a division's asset turnover ratio, which of the following strategies would they most likely recommend?

A critical function of the performance report is to focus on which managers must take blame for unfavorable variances.

KPIs, such as percentage of market share and rate of on-time deliveries, pertain to which of the four perspectives of a balanced scorecard?

Huntswell Corporation has two major divisions-Agricultural Products and Industrial Products. Data for the year just finished is as follows: For the Industrial Division, how much was the ROI?

If a large diversified company has many different divisions, each competing for capital expenditure funds, which of the following statements would be MOST relevant?