Exam 22: Performance Management and Evaluation

A flexible budget is derived by multiplying actual unit output by the standard unit costs.

Cost of capital is the maximum desired rate of return on a particular investment.

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

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the question below. What is the direct labor variance between the actual results and the flexible budget?

In evaluating investment center performance,ROI proves to be such a comprehensive performance measure that other performance measures are rarely needed.

Identify and describe the five different responsibility centers,and provide one example of each.

A manager can improve ROI by doing which of the following?

The manager of Center C is responsible for the online order operations of a large retailer.What type of responsibility center is Center C?

Determine the October 20xx ROI (rounded to two decimal places)for an investment center with the following information: Assets at September 30,20 \ 20,000,000 Assets at October 31, 20xx 22,000,000 Assets at October 15, 20xx 18,595,000 Operating income for the month ended October 31, 20xx $5,000,0000$ Operating income for the month ended October 31,20xx 5,000,000.0

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

The logical linking of goals to measurable objectives and targets and the tying of appropriate compensation incentives to the achievement of such objectives and targets are critical to the successful coordination of goals.

The economic value added performance measure focuses on long-term financial performance.

The way in which the performance of a cost center is evaluated is similar to

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

Determine the April 20xx residual income for an investment center with the following information: Operating income for the month ended April 30, 20xx \ 14,900,000 Assets at March 31, 20xx 10,200,000 Assets at April 30, 20xx 13,150,000 Desired ROI 49\% Actual ROI 60\%

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 \ 100 (F) Actual number of orders processed 100 Actual number of orders processed variance 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)

How many different types of responsibility centers exist?

Incentive awards are utilized mainly to encourage long-term performance.

How effective a performance management and evaluation system is depends on how well the goals of the entire company are coordinated rather than on how well the goals of individual responsibility centers and managers are coordinated.

The manager of Center E provides human resource support for the other centers in the company.What type of responsibility center is Center E?