Exam 24: Performance Evaluation and the Balanced Scorecard

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 sales revenue?

Which of the following is an advantage of decentralization?

Westhaven Company has a warehousing unit which operates as a cost center. They prepare monthly performance reports. Actual and budget data for February are shown here: Using the report format below, please complete the performance report.

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: Waycross uses management by exception. On which variance will Waycross focus first?

Performance evaluation systems provide top management with a framework for maintaining control over the organization.

Which of the following is a cost center?

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 division profit margin?

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 percentage variance for sales revenue?

Which of the following statements BEST describes the purpose of the balanced scorecard approach?

Assume Division 1 of the XYZ Company had the following results last year. Management's required rate of return is 8% and the weighted average cost of capital is 6%. Its effective tax rate is 30%.What is the division's return on investment?

To evaluate the performance of an investment center, a business needs KPIs that measure:

Which one of the following is NOT a goal of a performance evaluation system?

Which of the following KPIs are used to evaluate how efficiently a business unit uses assets?

If upper management is NOT satisfied with a division's asset turnover ratio, they should attempt to decrease operating expenses in order to raise the turnover.

Companies benchmark their performance against the performance of their competitors and also against their own past performance.

Huntswell Corporation has two major divisionAgricultural Products and Industrial Products. Data for the year just finished is as follows: If Huntswell wishes to identify the division that generated the highest earnings relative to its assets, that would be the Industrial Division.

In a balanced scorecard system, if employee excellence was one of the critical factors, which of the following would be a relevant KPI?

Marcia Consumer Products has several divisions, including the Education Division and the Recreation Division. Data on the two divisions are shown here: How much is the EVA for the Education Division?

If a corporate division makes large asset purchases, that would have the effect of lowering ROI.

One part of the balanced scorecard helps management answer the question: "How can we continue to improve and create value?" Which of the four perspectives is being described here?