Question 1

When measuring a company's performance,which of the following is a lag indicator?

Accepted Answer

A) Operational measures 
B) Financial measures 
C) Outcome measures 
D) Both A and B 
A) Operational measures 
B) Financial measures 
C) Outcome measures 
D) Both A and B

Question 2

List and describe the goals of performance evaluation systems.

Accepted Answer

1.  Promoting goal congruence and coordi

Question 3

What is the cause of a favorable 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 4

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 5

Which of the following responsibility centers use a performance report that compares only actual revenues and budgeted revenues?

Accepted Answer

A) Cost center 
B) Revenue center 
C) Investment center 
D) All of the above 
A) Cost center 
B) Revenue center 
C) Investment center 
D) All of the above

Question 6

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 7

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 8

The following data relates to the Miracle Corporation and its Toy Division. $$\begin{array} { | l | r | } 
\hline \text { Toy Division sales } & \$ 8,000,000 \
\hline \text { Toy Division aperating income } & \$ 480,000 \
\hline \text { Toy Division total assets } & \$ 2,000,000 \
\hline \text { Toy Division current liabilities } & \$ \text { 600,000 } \
\hline \text { Corporate target rate of return } & 14 \% \
\hline \text { Corporate weighted average cost of capital } & 10 \% \
\hline \text { Corporate effective tax rate } & 30 \% \
\hline
\end{array}$$
- What is the Toy Division's sales margin?

Accepted Answer

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

Question 9

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.

Question 10

The convenience store owned by a national chain is likely to be classified 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 11

Financial measures are lead indicators for companies.

Accepted Answer

A) True 
 B)False

Question 12

Gretzel had the following financial results for last month.Which type of responsibility center do these financial results reflect? 11ea84ce_c526_1c82_83dc_1ba18d6ee5c8

Accepted Answer

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

Question 13

The human resources department for car dealership is likely to be classified 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

The following data relates to the Miracle Corporation and its Toy Division. $$\begin{array} { | l | r | } 
\hline \text { Toy Division sales } & \$ 8,000,000 \
\hline \text { Toy Division aperating income } & \$ 480,000 \
\hline \text { Toy Division total assets } & \$ 2,000,000 \
\hline \text { Toy Division current liabilities } & \$ \text { 600,000 } \
\hline \text { Corporate target rate of return } & 14 \% \
\hline \text { Corporate weighted average cost of capital } & 10 \% \
\hline \text { Corporate effective tax rate } & 30 \% \
\hline
\end{array}$$ 
-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 15

Pillsbury produces cookies,pizza,bread,and other food items.Pillsbury was acquired by General Mills in 2001 for $10.4 billion.Pillsbury is likely to be classified 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.

When measuring a company's performance,which of the following is a lag indicator?

List and describe the goals of performance evaluation systems.

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

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?

Which of the following responsibility centers use a performance report that compares only actual revenues and budgeted revenues?

What is a limitation of financial performance measurements?

Employee satisfaction would be an example of measuring which perspective?

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

The convenience store owned by a national chain is likely to be classified as a(n):

Financial measures are lead indicators for companies.

Gretzel had the following financial results for last month.Which type of responsibility center do these financial results reflect? 11ea84ce_c526_1c82_83dc_1ba18d6ee5c8

The human resources department for car dealership is likely to be classified as a(n):

Pillsbury produces cookies,pizza,bread,and other food items.Pillsbury was acquired by General Mills in 2001 for $10.4 billion.Pillsbury is likely to be classified as a(n):

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

Exam 11: Performance Evaluation and the Balanced Scorecard

When measuring a company's performance,which of the following is a lag indicator?

List and describe the goals of performance evaluation systems.

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

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?

Which of the following responsibility centers use a performance report that compares only actual revenues and budgeted revenues?

What is a limitation of financial performance measurements?

Employee satisfaction would be an example of measuring which perspective?

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

The convenience store owned by a national chain is likely to be classified as a(n):

Financial measures are lead indicators for companies.

Gretzel had the following financial results for last month.Which type of responsibility center do these financial results reflect? 11ea84ce_c526_1c82_83dc_1ba18d6ee5c8

The human resources department for car dealership is likely to be classified as a(n):

Pillsbury produces cookies,pizza,bread,and other food items.Pillsbury was acquired by General Mills in 2001 for $10.4 billion.Pillsbury is likely to be classified as a(n):

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