Exam 22: Performance Management and Evaluation

The manager of Center A is responsible for generating cash inflows and incurring costs with the goal of making money for the company.The manager has no responsibility for assets.What type of responsibility center is Center A?

How many different types of responsibility centers exist?

As the staff accountant for Investment Center 713,calculate the October 20xx ROI,using the following information: October 20xx profit margin 38\% October 20xx sales \ 2,000,000 Assets at September 30, 20xx 1,850,000 Assets at October 31, 20xx 1,855,000

Which of the following is a type of incentive compensation?

The balanced scorecard links the perspectives of an organization's stakeholders with the organization's mission and vision,performance measures,strategic plan,and resources.

Economic value added is synonymous with shareholder wealth created by an investment center.

What is the business purpose of the balanced scorecard,and how does it benefit an organization?

The effectiveness of a performance management and evaluation system depends on how well it coordinates the goals of

A performance management and evaluation system is mainly utilized to account for and report on financial performance.

One of the overall goals of the Pancake House Restaurant is customer satisfaction.In the light of that goal,match the internal business processes perspective with the appropriate objective.

Which of the following is an example of a performance measurement?

Using the following information,prepare a single report setting forth the variable costing income statement as well as a performance report for Profit Center West. Budgeted sales \ 20,000 Budgeted sales variance \ 5,000 (F) Actual variable cost of goods sold \ 8,000 Actual variable cost of goods sold variance \ 10,000 (F) Budgeted variable selling expenses \ 5,000 Actual variable selling expenses \ 3,000 Budgeted fixed manufacturing costs \ 1,000 Budgeted fixed manufacturing costs variance \ 50 (F) Budgeted fixed selling expenses \ 2,000 Budgeted fixed selling expenses variance \1 00 (F) Actual number of orders processed 100 Actual number of orders processed 10 (U) Budgeted average daily sales \ 500 Budgeted average daily sales variance \ 200 (F) Actual number of units sold 450 Actual number of units sold variance 25 (F)

An organization's four basic stakeholder groups include investors,employees,external business processes,and customers.

A responsibility center whose manager is held accountable for both revenues and costs and for the resulting operating income is called a profit center.

It is not necessary for managers to fully understand the causal relationship between their actions and the organization's overall performance to get results.

Use the following performance report for a profit center of the Wet Cat Food Company for the month ended December 31 to answer the question below. What was the actual profit center income?

A manager can improve the economic value of an investment center by decreasing assets.

The alignment of an organization's strategy with all the perspectives of the balanced scorecard results in performance objectives that benefit all stakeholders.

To succeed,an organization must add value for all of its stakeholders in the long term only.

Manufacturing companies rarely utilize responsibility accounting.