Question 1

Which of the following goals of a performance evaluation system is accomplished 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 2

Comparing actual results to the results of competitors and comparing actual results to industry standards 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.

Question 3

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 4

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

Accepted Answer

1.Frees top management's time?by delegat

Question 5

The performance report for which of the following responsibility centers would typically include revenues and costs?

Accepted Answer

A) Cost center 
B) Sales center 
C) Revenue center 
D) Profit center 
A) Cost center 
B) Sales center 
C) Revenue center 
D) Profit center

Question 6

Which of the following perspectives from the balanced scorecard focuses on determining if customers are happy after the sale takes place?

Accepted Answer

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

Question 7

Selected financial data for the Entertainment Division of Magic Enterprises is as follows:
 $$\begin{array} { | l | r r | } 
\hline \text { Sales } & \$ & 7,200,000 \
\hline \text { Operating income } & \$ & 1,440,000 \
\hline \text { Total assets } & \$ & 3,000,000 \
\hline \text { Current liabilities } & \$ & 800,000 \
\hline \text { Required rate af return } & & 8 \% \
\hline \text { Weighted average cost of capital } & & 6 \% \
\hline
\end{array}$$
- What is the Entertainment Division's sales margin? 
A.11.11%
B.20.00%
C.48.00%
D.240.00%

Accepted Answer

The answer of  Selected financial data for the Entertainment...

Question 8

The Hotel Division of Treasure Island Corporation had the following results last year.
 $$\begin{array} { | l | c | } 
\hline \text { Sales } & \$ 15,000,000 \
\hline \text { Operating incore } & \$ 6,000,000 \
\hline \text { Total assets } & \$ 10,000,000 \
\hline \text { Current liabilities } & \$ 3,000,000 \
\hline
\end{array}$$ Management's target rate of return is 14% and the weighted average cost of capital is 10%.Its effective tax rate is 35%.
Required:
a.Calculate the return on investment (ROI).
b.Calculate the residual income.
c.Calculate the Economic Value Added (EVA).

Accepted Answer

\[\begin{array} { | l | c | } 
\hline \t

Question 9

Providing bonuses to subunit managers who achieve performance targets would be an example of:

Accepted Answer

A) promoting goal congruence and coordination. 
B) motivating managers. 
C) providing feedback. 
D) none of the above. 
A) promoting goal congruence and coordination. 
B) motivating managers. 
C) providing feedback. 
D) none of the above.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

Residual income is the difference between revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 13

The Frito-Lay division of PepsiCo is most likely treated as a(n):

Accepted Answer

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

Question 14

New product development time 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 15

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

Accepted Answer

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

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a disadvantage of decentralization?

Accepted Answer

A) Management does not have time to concentrate on long-term strategic planning. 
B) Unit managers may not understand the big picture of the company. 
C) Unit managers have decreased motivation and retention. 
D) Managers receive training and experience to allow advancement in the organization. 
A) Management does not have time to concentrate on long-term strategic planning. 
B) Unit managers may not understand the big picture of the company. 
C) Unit managers have decreased motivation and retention. 
D) Managers receive training and experience to allow advancement in the organization.

Question 18

Management by perception is used to determine which variances to investigate.

Accepted Answer

A) True 
 B)False

Question 19

Return on investment and revenue growth would be examples of:

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 20

Cash flows from operations and gross margin growth 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.

Which of the following goals of a performance evaluation system is accomplished when targets are compared to actual results?

Comparing actual results to the results of competitors and comparing actual results to industry standards would be an example of:

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

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

The performance report for which of the following responsibility centers would typically include revenues and costs?

Which of the following perspectives from the balanced scorecard focuses on determining if customers are happy after the sale takes place?

Providing bonuses to subunit managers who achieve performance targets would be an example of:

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

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

Residual income is the difference between revenues and expenses.

The Frito-Lay division of PepsiCo is most likely treated as a(n):

New product development time would be an example of the:

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

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

Which of the following is a disadvantage of decentralization?

Management by perception is used to determine which variances to investigate.

Return on investment and revenue growth would be examples of:

Cash flows from operations and gross margin growth would be examples of the:

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Production, and the Costs of Quality

Process Costing

Cost Behavior

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

Statement of Cash Flows

Financial Statement Analysis

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Exam 11: Performance Evaluation and the Balanced Scorecard

Which of the following goals of a performance evaluation system is accomplished when targets are compared to actual results?

Comparing actual results to the results of competitors and comparing actual results to industry standards would be an example of:

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

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

The performance report for which of the following responsibility centers would typically include revenues and costs?

Which of the following perspectives from the balanced scorecard focuses on determining if customers are happy after the sale takes place?

Providing bonuses to subunit managers who achieve performance targets would be an example of:

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

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

Residual income is the difference between revenues and expenses.

The Frito-Lay division of PepsiCo is most likely treated as a(n):

New product development time would be an example of the:

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

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

Which of the following is a disadvantage of decentralization?

Management by perception is used to determine which variances to investigate.

Return on investment and revenue growth would be examples of:

Cash flows from operations and gross margin growth would be examples of the:

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Production, and the Costs of Quality

Process Costing

Cost Behavior

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

Statement of Cash Flows

Financial Statement Analysis

Filters