Question 1

Management by exception would dictate that the manager investigate which of the following variances?

Accepted Answer

A) Variances which are greater than a certain dollar amount or percentage. 
B) Variances which are less than a certain dollar amount or percentage. 
C) All unfavourable variances. 
D) All favourable and unfavourable variances. 
A) Variances which are greater than a certain dollar amount or percentage. 
B) Variances which are less than a certain dollar amount or percentage. 
C) All unfavourable variances. 
D) All favourable and unfavourable variances.

Question 2

What will happen to return on investment (ROI)if a company must decrease its selling price while all of the company's expenses remain constant?

Accepted Answer

A) ROI will increase. 
B) ROI will decrease. 
C) ROI will not be affected. 
D) We cannot determine the effect from the information provided. 
A) ROI will increase. 
B) ROI will decrease. 
C) ROI will not be affected. 
D) We cannot determine the effect from the information provided.

Question 3

What is the Toy Division's profit margin?

Accepted Answer

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

Question 4

The accounting department for a department store chain is likely to be considered an investment centre.

Accepted Answer

A) True 
 B)False

Question 5

The duties of an investment centre manager are similar to those of a CFO.

Accepted Answer

A) True 
 B)False

Question 6

Match between columns
                        Premises: Johnson Enterprises is a small molding manufacturer. The owner is also the senior manager.
In order to avoid duplication of services the company has "flattened" its organization structure and now has only one Payroll Department, one Human Resource department and one administrative headquarters.
Managers have the authority to make decisions about product offerings and pricing.
Having formal training programs for lower level managers the company has a policy that they promote from within the company whenever possible.
The company is divided into several operating units.

Accepted Answer

The Answer of Decentralized and Centralized is...

Question 7

The number of repeat customers 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 8

Powell Enterprises has operating income of $72,000.Its return on investment (ROI)is 36%,while its target rate of return is 10%.The total assets of Powell Enterprises would be closest to

Accepted Answer

A) $7,200. 
B) $25,920. 
C) $200,000. 
D) $720,000. 
A) $7,200. 
B) $25,920. 
C) $200,000. 
D) $720,000.

Question 9

The Frozen Foods Division of AgraFoods Corporation had sales of $8,400,000 and operating income of $1,848,000 last year.The total assets of the Frozen Foods Division were $3,500,000,while current liabilities were $850,000.AgraFoods Corporation's target rate of return is 12%,while its weighted average cost of capital is 8%.The effective tax rate for the company is 40%.
Required:
1.Calculate the profit margin.
2.Calculate the asset turnover.
3.Calculate the return on investment (ROI).
4.Calculate the residual income.
5.Calculate the Economic Value Added (EVA).

Accepted Answer

@#IMG-DLM&_TB1765_00_TB1765_00_TB1765_00_TB1765_00

Question 10

The financial results for one of the subunits of Factory Six Racing is presented in the partially completed performance evaluation report below.
   
* Flexible budget variance/Flexible budget
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)?

Accepted Answer

Requirement 1:
 @#IMG-DLM&_TB1765_00_TB1765_00_TB1

Question 11

The taxation department for department store chain is likely to be classified as a(n)

Accepted Answer

A) cost centre. 
B) investment centre. 
C) profit centre. 
D) revenue centre. 
A) cost centre. 
B) investment centre. 
C) profit centre. 
D) revenue centre.

Question 12

Return on Investment (ROI)is defined as operating income divided by total assets.

Accepted Answer

A) True 
 B)False

Question 13

List the four areas of a balanced scorecard.Describe each area.Define "key performance indicator" (KPI).Give an example of a KPI for each balanced scorecard area

Accepted Answer

1.Financial Perspective─The financial pe

Question 14

A cost centre will show revenues and costs.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

EVA = (After-tax operating inc

Question 16

Financial measures are lead indicators for companies.

Accepted Answer

A) True 
 B)False

Question 17

Companies benchmark their performance against the performance of their competitors and against their own past performance.

Accepted Answer

A) True 
 B)False

Question 18

The reservations department for a hotel chain is likely to be classified as a(n)

Accepted Answer

A) cost centre. 
B) investment centre. 
C) profit centre. 
D) revenue centre. 
A) cost centre. 
B) investment centre. 
C) profit centre. 
D) revenue centre.

Question 19

Rose Company has a target rate of return of 10%,an ROI of 36%,and asset turnover of 3.0.The profit margin for Rose Company would be closest to

Accepted Answer

A) 3%. 
B) 12%. 
C) 30%. 
D) 108%. 
A) 3%. 
B) 12%. 
C) 30%. 
D) 108%.

Question 20

Providing subunit managers with performance results and comparing targets to actual results would be an example of

Accepted Answer

A) promoting goal congruence and coordination. 
B) motivating managers. 
C) providing feedback. 
D) benchmarking. 
A) promoting goal congruence and coordination. 
B) motivating managers. 
C) providing feedback. 
D) benchmarking.

Management by exception would dictate that the manager investigate which of the following variances?

What will happen to return on investment (ROI)if a company must decrease its selling price while all of the company's expenses remain constant?

What is the Toy Division's profit margin?

The accounting department for a department store chain is likely to be considered an investment centre.

The duties of an investment centre manager are similar to those of a CFO.

The number of repeat customers would be an example of measuring which perspective?

Powell Enterprises has operating income of $72,000.Its return on investment (ROI)is 36%,while its target rate of return is 10%.The total assets of Powell Enterprises would be closest to

The taxation department for department store chain is likely to be classified as a(n)

Return on Investment (ROI)is defined as operating income divided by total assets.

List the four areas of a balanced scorecard.Describe each area.Define "key performance indicator" (KPI).Give an example of a KPI for each balanced scorecard area

A cost centre will show revenues and costs.

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.

Financial measures are lead indicators for companies.

Companies benchmark their performance against the performance of their competitors and against their own past performance.

The reservations department for a hotel chain is likely to be classified as a(n)

Rose Company has a target rate of return of 10%,an ROI of 36%,and asset turnover of 3.0.The profit margin for Rose Company would be closest to

Providing subunit managers with performance results and comparing targets to actual results would be an example of

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

Management by exception would dictate that the manager investigate which of the following variances?

What will happen to return on investment (ROI)if a company must decrease its selling price while all of the company's expenses remain constant?

What is the Toy Division's profit margin?

The accounting department for a department store chain is likely to be considered an investment centre.

The duties of an investment centre manager are similar to those of a CFO.

The number of repeat customers would be an example of measuring which perspective?

Powell Enterprises has operating income of $72,000.Its return on investment (ROI)is 36%,while its target rate of return is 10%.The total assets of Powell Enterprises would be closest to

The taxation department for department store chain is likely to be classified as a(n)

Return on Investment (ROI)is defined as operating income divided by total assets.

List the four areas of a balanced scorecard.Describe each area.Define "key performance indicator" (KPI).Give an example of a KPI for each balanced scorecard area

A cost centre will show revenues and costs.

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.

Financial measures are lead indicators for companies.

Companies benchmark their performance against the performance of their competitors and against their own past performance.

The reservations department for a hotel chain is likely to be classified as a(n)

Rose Company has a target rate of return of 10%,an ROI of 36%,and asset turnover of 3.0.The profit margin for Rose Company would be closest to

Providing subunit managers with performance results and comparing targets to actual results would be an example of

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