Exam 11: Performance Evaluation and the Balanced Scorecard

Small companies tend to use centralized decision making.

Which of the following is a disadvantage of decentralization?

What is it called when managers look at the size of the variances between actual results and budgeted amounts in order to determine which variances should be investigated?

Organize the following list into the appropriate balanced scorecard perspectives.Include "Sustainability" as an addition to the four traditional perspectives. Ecoefficient logistics Percentage of defective product units Return on assets Number of patents Quantity of product waste Employee turnover rate Percentage of processes with real-time feedback Profit per salesperson Training hours per employee Earnings per share Number of new customers Percentage of on-time deliveries by suppliers Percentage of error free invoices Megawatt hours of electricity used Manufacture cycle time Market channel profitability Percentage use of recyclable materials Employee competence measures

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

The profit margin is operating income divided by sales.

The manager of the accounting department at Nike would be in charge of a(n)

Management by exception saves management time by dictating that managers pay attention to only unfavourable variances.

Selle had the following financial results for last month.What type of responsibility centre do these results reflect?

A product line at Coca-Cola (such as the Diet Coke product line)is most likely treated as a(n)

An amusement park's games department which reports revenues and expenses is likely to be classified as a(n)

The difference in dollars between amounts in the static budget and the flexible budget is called the

Rickett Company has operating income of $180,000.Its return on investment (ROI)is 30%,while its target rate of return is 12%.The total assets of Rickett Company would be closest to

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.

Data on three unrelated companies are given in the following table. Fill in the missing information.

List and describe the goals of performance evaluation systems.

The balanced scorecard considers both financial and operational performance measures.

What is The Plastic Lumber Company's Outdoor Furniture Division asset turnover?

Data on three unrelated companies are given in the following table. Fill in the missing information.

Which of the following perspectives from the balanced scorecard focuses on continuing to improve and create value?