Question 1

What is the Toy Division's Return on Investment (ROI)?

Accepted Answer

A) 6% 
B) 24% 
C) 30% 
D) 400% 
A) 6% 
B) 24% 
C) 30% 
D) 400%

Question 2

Profit margin is calculated as sales divided by operating income.

Accepted Answer

A) True 
 B)False

Question 3

Variances which exceed a certain dollar amount or a certain percentage are the variances which are investigated when using management by exception.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) Revenue centre 
B) Profit centre 
C) Investment centre 
D) Cost centre 
A) Revenue centre 
B) Profit centre 
C) Investment centre 
D) Cost centre

Question 5

The number of on-time deliveries would be an example of measuring which perspective?

Accepted Answer

A) Financial 
B) Customer 
C) Internal business 
D) Learning and growth 
A) Financial 
B) Customer 
C) Internal business 
D) Learning and growth

Question 6

Customer satisfaction ratings would be an example of the

Accepted Answer

A) financial perspective. 
B) customer perspective. 
C) internal business perspective. 
D) learning and growth perspective. 
A) financial perspective. 
B) customer perspective. 
C) internal business perspective. 
D) learning and growth perspective.

Question 7

Customer satisfaction,operational efficiency,and employee excellence are often measured as part of the balanced scorecard approach.

Accepted Answer

A) True 
 B)False

Question 8

Using what measure may cause a manager to reject a project that would be profitable for the company as a whole?

Accepted Answer

A) ROI 
B) Residual income 
C) Operating income 
D) EVA 
A) ROI 
B) Residual income 
C) Operating income 
D) EVA

Question 9

Companies that decentralize split their operations into different divisions or operating units.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

EVA = (After-tax operating inc

Question 11

Economic Value Added (EVA)is a special type of Return on Investment (ROI)calculation.

Accepted Answer

A) True 
 B)False

Question 12

What is the cause of a favourable sales volume variance for revenues?

Accepted Answer

A) Actual net income for the subunit is greater than budgeted net income. 
B) Actual sales in dollars are greater than the master budget sales in dollars. 
C) Actual sales in dollars are less than the static budget sales in dollars. 
D) The flexible budget sales in dollars are greater than the static budget sales in dollars. 
A) Actual net income for the subunit is greater than budgeted net income. 
B) Actual sales in dollars are greater than the master budget sales in dollars. 
C) Actual sales in dollars are less than the static budget sales in dollars. 
D) The flexible budget sales in dollars are greater than the static budget sales in dollars.

Question 13

What is The Plastic Lumber Company's Outdoor Furniture Division residual income?

Accepted Answer

A) $126,000 
B) $294,000 
C) $315,000 
D) $396,000 
A) $126,000 
B) $294,000 
C) $315,000 
D) $396,000

Question 14

Decentralization allows top management to concentrate on long-term strategic planning.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) $140,000 
B) $196,000 
C) $200,000 
D) $336,000 
A) $140,000 
B) $196,000 
C) $200,000 
D) $336,000

Question 16

What is the First Electronics Corporation cell phone division's Residual Income (RI)?

Accepted Answer

A) $472,500 
B) $600,000 
C) $690,000 
D) $300,000 
A) $472,500 
B) $600,000 
C) $690,000 
D) $300,000

Question 17

What is the First Electronics Corporation cell phone division's Return on Investment (ROI)?

Accepted Answer

A) 15.00% 
B) 25.00% 
C) 30.00% 
D) 200.00% 
A) 15.00% 
B) 25.00% 
C) 30.00% 
D) 200.00%

Question 18

The use of return on investment (ROI)as a performance measure may lead managers to reject projects that would be profitable for the company as a whole.

Accepted Answer

A) True 
 B)False

Question 19

Roberts Corporation has an ROI of 23%,total assets of $5,250,000,and current liabilities of $950,000.What is Roberts Corporation's operating income?

Accepted Answer

A) $218,500 
B) $1,207,500 
C) $4,130,435 
D) $22,826,087 
A) $218,500 
B) $1,207,500 
C) $4,130,435 
D) $22,826,087

Question 20

What is the Tandem division's profit margin?

Accepted Answer

A) 7.50% 
B) 24.00% 
C) 12.00% 
D) 200.00% 
A) 7.50% 
B) 24.00% 
C) 12.00% 
D) 200.00%

What is the Toy Division's Return on Investment (ROI)?

Profit margin is calculated as sales divided by operating income.

Variances which exceed a certain dollar amount or a certain percentage are the variances which are investigated when using management by exception.

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

The number of on-time deliveries would be an example of measuring which perspective?

Customer satisfaction ratings would be an example of the

Customer satisfaction,operational efficiency,and employee excellence are often measured as part of the balanced scorecard approach.

Using what measure may cause a manager to reject a project that would be profitable for the company as a whole?

Companies that decentralize split their operations into different divisions or operating units.

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

Economic Value Added (EVA)is a special type of Return on Investment (ROI)calculation.

What is the cause of a favourable sales volume variance for revenues?

What is The Plastic Lumber Company's Outdoor Furniture Division residual income?

Decentralization allows top management to concentrate on long-term strategic planning.

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

What is the First Electronics Corporation cell phone division's Residual Income (RI)?

What is the First Electronics Corporation cell phone division's Return on Investment (ROI)?

The use of return on investment (ROI)as a performance measure may lead managers to reject projects that would be profitable for the company as a whole.

Roberts Corporation has an ROI of 23%,total assets of $5,250,000,and current liabilities of $950,000.What is Roberts Corporation's operating income?

What is the Tandem division's profit margin?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity Based Costing

Process Costing

Cost Behaviour

Cost-Volume-Profit Analysis

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Capital Investment Decisions and the Time Value of Money

Filters

Exam 11: Performance Evaluation and the Balanced Scorecard

What is the Toy Division's Return on Investment (ROI)?

Profit margin is calculated as sales divided by operating income.

Variances which exceed a certain dollar amount or a certain percentage are the variances which are investigated when using management by exception.

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

The number of on-time deliveries would be an example of measuring which perspective?

Customer satisfaction ratings would be an example of the

Customer satisfaction,operational efficiency,and employee excellence are often measured as part of the balanced scorecard approach.

Using what measure may cause a manager to reject a project that would be profitable for the company as a whole?

Companies that decentralize split their operations into different divisions or operating units.

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

Economic Value Added (EVA)is a special type of Return on Investment (ROI)calculation.

What is the cause of a favourable sales volume variance for revenues?

What is The Plastic Lumber Company's Outdoor Furniture Division residual income?

Decentralization allows top management to concentrate on long-term strategic planning.

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

What is the First Electronics Corporation cell phone division's Residual Income (RI)?

What is the First Electronics Corporation cell phone division's Return on Investment (ROI)?

The use of return on investment (ROI)as a performance measure may lead managers to reject projects that would be profitable for the company as a whole.

Roberts Corporation has an ROI of 23%,total assets of $5,250,000,and current liabilities of $950,000.What is Roberts Corporation's operating income?

What is the Tandem division's profit margin?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity Based Costing

Process Costing

Cost Behaviour

Cost-Volume-Profit Analysis

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Capital Investment Decisions and the Time Value of Money

Filters