Exam 11: Performance Evaluation and the Balanced Scorecard

Use the information below to answer the following question(s): Selected financial data for The Plastic Lumber Company's Outdoor Furniture Division is as follows: -What is The Plastic Lumber Company's Outdoor Furniture Division return on investment?

Employee satisfaction is a measure of the internal business process perspective of the balanced scorecard.

Match the following: A) Financial perspective B) Customer perspective C) Learning and growth perspective D) Internal business perspective 1) Average length of the production process 2) Employee promotion rate 3) Cash flow from operations 4) Asset turnover 5) Earnings growth 6) Finished products per employee per day 7) Machine downtime 8) Customer satisfaction ratings 9) Average machine setup time 10) Number of new customers 11) Customer satisfaction ratings 12) Wait time per order before start of production 13) Percentage of defective product units 14) Return on assets 15) Product cost per unit

Use the information below to answer the following question(s): Assume the Cell Phone Division of the First Electronics Corporation had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is 7%. Its effective tax rate is 30%. -What is the First Electronics Corporation cell phone division's asset turnover?

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

Return on investment and revenue growth would be examples of

Which of the following is a potential disadvantage of decentralization?

Which of the following aspects of a performance evaluation system best describes when subunit managers are provided with performance targets?

Profit margin is calculated as sales divided by operating income.

Falcone Company has $72,000 of operating income, a profit margin of 12%, a target rate of return of 10%, and asset turnover of 3.0. The sales in dollars for Falcone Company would be closest to

Use the information below to answer the following question(s): Selected financial data for The Plastic Lumber Company's Outdoor Furniture Division is as follows: -What is The Plastic Lumber Company's Outdoor Furniture Division asset turnover?

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

Use the information below to answer the following question(s): Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: -What is the Photocopier Division's residual income?

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

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

Use the information below to answer the following question(s): The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income of $840,000 last year. The total assets of the Beverage Division were $1,680,000, while current liabilities were $360,000. Natural Foods Corporation's target rate of return is 9%, while its weighted average cost of capital is 7%. The effective tax rate for the company is 40%. -What is the Beverage Division's asset turnover?

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

Employee satisfaction would be an example of measuring which perspective?

Use the information below to answer the following question(s): The following data relates to the Miracle Corporation and its Toy Division. -What is the Toy Division's asset turnover?

Use the information below to answer the following question(s): Selected financial data for The Plastic Lumber Company's Outdoor Furniture Division is as follows: -What is The Plastic Lumber Company's Outdoor Furniture Division residual income?