Question 1

What is a limitation of financial performance measurements?

Accepted Answer

A) They are not useful for benchmarking. 
B) They do not motivate managers. 
C) They tend to focus on long-term performance. 
D) They tend to be lag indicators. 
A) They are not useful for benchmarking. 
B) They do not motivate managers. 
C) They tend to focus on long-term performance. 
D) They tend to be lag indicators.

Question 2

Key Performance Indicators are used to assess how well a company's objectives have been achieved.

Accepted Answer

A) True 
 B)False

Question 3

The percentage of market share 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 4

What is the Entertainment Division's asset turnover?

Accepted Answer

A) 9.0 
B) 5.0 
C) 2.4 
D) 2.1 
A) 9.0 
B) 5.0 
C) 2.4 
D) 2.1

Question 5

Cost centre performance reports typically focus on the static budget variance.

Accepted Answer

A) True 
 B)False

Question 6

Falcone Company has $72,000 of operating income,a profit margin of 12%,a target rate of return of 10%,and asset turnover of 3.0.The sales in dollars for Falcone Company would be closest to

Accepted Answer

A) $8,640. 
B) $24,000. 
C) $216,000. 
D) $600,000. 
A) $8,640. 
B) $24,000. 
C) $216,000. 
D) $600,000.

Question 7

The number of employee suggestions implemented and percentage of the sales force with access to real-time inventory levels would be examples 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 8

The percentage of products with on-line help manuals 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 9

Decentralization helps keep a company's costs down since each business unit may have its own purchasing department.

Accepted Answer

A) True 
 B)False

Question 10

When calculating Economic Value Added (EVA),the weighted average cost of capital replaces the target Return on Investment (ROI)as the expected rate of return.

Accepted Answer

A) True 
 B)False

Question 11

What is the Tandem division's asset turnover?

Accepted Answer

A) 2.0 
B) 4.2 
C) 8.3 
D) 13.3 
A) 2.0 
B) 4.2 
C) 8.3 
D) 13.3

Question 12

Performance evaluation systems are a way for management to control the organization.

Accepted Answer

A) True 
 B)False

Question 13

The difference between actual results and budgeted amounts is called a variance.

Accepted Answer

A) True 
 B)False

Question 14

The local McDonald's restaurant is likely to be considered to be an investment centre.

Accepted Answer

A) True 
 B)False

Question 15

The following information for Night Inns was available for the past year:
   
Management has a 25% target rate of return.Night'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 16

Employee satisfaction 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 17

The ultimate purpose of the balanced scorecard is to give management a balanced view of the company's performance.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following aspects of a performance evaluation system best describes when targets are compared to actual results?

Accepted Answer

A) Communicating company's expectations 
B) Motivating managers 
C) Promoting goal congruence 
D) Providing feedback 
A) Communicating company's expectations 
B) Motivating managers 
C) Promoting goal congruence 
D) Providing feedback

Question 19

Which of the following goals of a performance evaluation system is accomplished when bonuses are provided to subunit managers who achieve performance targets?

Accepted Answer

A) Benchmarking 
B) Motivating unit managers 
C) Promoting goal congruence 
D) Communicating expectations 
A) Benchmarking 
B) Motivating unit managers 
C) Promoting goal congruence 
D) Communicating expectations

Question 20

The number of warranty claims 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.

What is a limitation of financial performance measurements?

Key Performance Indicators are used to assess how well a company's objectives have been achieved.

The percentage of market share would be an example of measuring which perspective?

What is the Entertainment Division's asset turnover?

Cost centre performance reports typically focus on the static budget variance.

Falcone Company has $72,000 of operating income,a profit margin of 12%,a target rate of return of 10%,and asset turnover of 3.0.The sales in dollars for Falcone Company would be closest to

The number of employee suggestions implemented and percentage of the sales force with access to real-time inventory levels would be examples of the

The percentage of products with on-line help manuals would be an example of measuring which perspective?

Decentralization helps keep a company's costs down since each business unit may have its own purchasing department.

When calculating Economic Value Added (EVA),the weighted average cost of capital replaces the target Return on Investment (ROI)as the expected rate of return.

What is the Tandem division's asset turnover?

Performance evaluation systems are a way for management to control the organization.

The difference between actual results and budgeted amounts is called a variance.

The local McDonald's restaurant is likely to be considered to be an investment centre.

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

Employee satisfaction would be an example of measuring which perspective?

The ultimate purpose of the balanced scorecard is to give management a balanced view of the company's performance.

Which of the following aspects of a performance evaluation system best describes when targets are compared to actual results?

Which of the following goals of a performance evaluation system is accomplished when bonuses are provided to subunit managers who achieve performance targets?

The number of warranty claims would be an example of the

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 a limitation of financial performance measurements?

Key Performance Indicators are used to assess how well a company's objectives have been achieved.

The percentage of market share would be an example of measuring which perspective?

What is the Entertainment Division's asset turnover?

Cost centre performance reports typically focus on the static budget variance.

Falcone Company has $72,000 of operating income,a profit margin of 12%,a target rate of return of 10%,and asset turnover of 3.0.The sales in dollars for Falcone Company would be closest to

The number of employee suggestions implemented and percentage of the sales force with access to real-time inventory levels would be examples of the

The percentage of products with on-line help manuals would be an example of measuring which perspective?

Decentralization helps keep a company's costs down since each business unit may have its own purchasing department.

When calculating Economic Value Added (EVA),the weighted average cost of capital replaces the target Return on Investment (ROI)as the expected rate of return.

What is the Tandem division's asset turnover?

Performance evaluation systems are a way for management to control the organization.

The difference between actual results and budgeted amounts is called a variance.

The local McDonald's restaurant is likely to be considered to be an investment centre.

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

Employee satisfaction would be an example of measuring which perspective?

The ultimate purpose of the balanced scorecard is to give management a balanced view of the company's performance.

Which of the following aspects of a performance evaluation system best describes when targets are compared to actual results?

Which of the following goals of a performance evaluation system is accomplished when bonuses are provided to subunit managers who achieve performance targets?

The number of warranty claims would be an example of the

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