Exam 14: Performance Measurement

Sections of the Corporations Act and the accounting standards require large companies to report on director and executive ___________________ in their external reports.

If the profit margin is 12.5% and investment turnover is 1.1 times,return on investment is:

Division K has a contribution margin of $100 000 and fixed costs traceable to the division of $25 000 mean it is making a divisional margin of $75 000.However after the allocation of $90 000 of common costs,which would not be saved if the division were to be closed,it is making a loss of $15 000.Assuming all other factors are equal,if the division were closed the effect on the overall profit of the organisation would be:

Which of these is a $\bold{disadvantage}$ of the return on investment performance measure?

Under the opportunity cost principle,when calculating ROI and RI

The financial performance measure which is included in the list below is:

A valid criticism of the balanced scorecard's overall value is:

The appointment of managers responsible for the performance of divisions of an entity assists in which of the following?

If profit before tax is $320 000,required rate of return is 15% and the investment is $1 900 000 the residual income calculation is:

Which of these is a $\bold{disadvantage}$ of the residual income performance measure?

Which of the following statements about the economic value added (EVA)performance measure is $\bold{not}$ true?

Which of the following is a criticism of the Australian Government Clean Energy Act 2011 which sets up the carbon pricing mechanism?

A centre that is solely responsible for costs,revenues and investment in assets is known as a:

Which of the following could undermine the value of the balanced scorecard to an entity?

The ratio that measures the amount of sales generated relative to the level of investment is the investment _______________ ratio.

Which of the following is not an advantage of non-financial performance measures?

Which of these is regarded as a $\bold{disadvantage}$ of return on investment as a performance measure?

The performance measure,which is like residual income and is based on the economic increase in an organisation's value after a suitable charge for capital is subtracted,is ___________ value added.

If investment is $300 000,credit sales are $800 000 and cash sales are $300 000,the investment turnover ratio is:

Using written-down value as the investment base in ROI and RI calculations will tend to produce _________ returns with the passing of time