Exam 11: Performance Evaluation and the Balanced Scorecard

The financial results for one of the subunits of Factory Six Racing is presented in the partially completed performance evaluation report below. Required: 1.Complete the performance report rounding to three decimal places. 2.Based on the data presented,what type of responsibility centre is this subunit? 3.Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $5,000 and exceeding 10% ( both criteria must be met)?

The difference between amounts in the static budget and the flexible budget for a revenue centre is caused by which of the following?

Pillsbury produces cookies,pizza,bread,and other food items.Pillsbury was acquired by General Mills in 2001 for $10.4 billion.Pillsbury is likely to be classified as a(n)

Describe the limitations of financial performance measurement.

Flash Corporation has operating income of $180,000,a profit margin of 15%,and asset turnover of 2.0.The return on investment (ROI)for Flash Corporation would be closest to

Goal incongruence frequently exists in centralized organizations.

Revenue centre performance reports often highlight both the flexible budget variance and the sales volume variance.

The number of defects found during the manufacturing process would be an example of measuring which perspective?

What is the Beverage Division's Economic Value Added (EVA)?

Prescott Enterprises has a target rate of return of 12%,an ROI of 30%,and asset turnover of 2.0.The profit margin for Prescott Enterprises would be closest to

Which of the following aspects of a performance evaluation system best describes when the company's actual results are compared to industry standards?

List and describe five reasons why a company might choose to decentralize.

Goal congruence is more likely to be achieved at a decentralized organization rather than a centralized organization.

What is the Entertainment Division's return on investment?

What is the Beverage Division's profit margin?

How can a manager increase return on investment (ROI)?

The following information for Alpha Company was available for the past year: Management has a 25% target rate of return.Alpha Company's weighted average cost of capital is 17% and its effective tax rate is 32%. Calculate the EVA.

What is the Toy Division's Residual Income (RI)?

The manager of the Midwest sales region at Pace Food would be in charge of a(n)