Question 1

The number of new products developed 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 2

Use the information below to answer the following question(s):
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands).
   
Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-What is the Tandem division's profit margin?

Accepted Answer

A)  7.50% 
B)  24.00% 
C)  12.00% 
D)  200.00% 
A)  7.50% 
B)  24.00% 
C)  12.00% 
D)  200.00%

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

When calculating Economic Value Added (EVA), the weighted average cost of capital replaces the target Return on Investment (ROI) as the expected rate of return.

Accepted Answer

A) True 
 B)False

Question 5

Data on three unrelated companies are given in the following table.
   Fill in the missing information.

Accepted Answer

@#IMG-DLM& Alpha Company computations: ^a OI ÷ S; $2

Question 6

Use the information below to answer the following question(s):
The following data relates to Logan Electric and its Light Bulb Division.
  
-What is the Light Bulb Division's sales margin?

Accepted Answer

A)  30.6% 
B)  10% 
C)  18.33% 
D)  25% 
A)  30.6% 
B)  10% 
C)  18.33% 
D)  25%

Question 7

Flash Corporation has operating income of $180,000, a profit margin of 15%, and asset turnover of 2.0. The return on investment (ROI) for Flash Corporation would be closest to

Accepted Answer

A)  8%. 
B)  2%. 
C)  30%. 
D)  125%. 
A)  8%. 
B)  2%. 
C)  30%. 
D)  125%.

Question 8

Use the information below to answer the following question(s):
Selected financial data for the Entertainment Division of Magic Enterprises is as follows:
  
-What is the Entertainment Division's asset turnover?

Accepted Answer

A)  9.0 
B)  5.0 
C)  2.4 
D)  2.1 
A)  9.0 
B)  5.0 
C)  2.4 
D)  2.1

Question 9

The Jazz Division of Heights Recording Corporation had the following results last year.
   Management's target rate of return is 12% and the weighted average cost of capital is 9%. Its effective tax rate is 40%.
Required:
a. Calculate the return on investment (ROI).
b. Calculate the residual income.

Accepted Answer

The answer of The Jazz Division of Heights Recording Corporation...

Question 10

Key Performance Indicators are used to assess how well a company's objectives have been achieved.

Accepted Answer

A) True 
 B)False

Question 11

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 Residual Income (RI)?

Accepted Answer

A)  $(640,000) 
B)  $196,000 
C)  $200,000 
D)  $280,000 
A)  $(640,000) 
B)  $196,000 
C)  $200,000 
D)  $280,000

Question 12

Which of the following perspectives from the balanced scorecard focuses on determining the company's "climate for action"?

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 13

Customer satisfaction, operational efficiency, and employee excellence are often measured as part of the balanced scorecard approach.

Accepted Answer

A) True 
 B)False

Question 14

The percentage of market share 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 15

The number of repeat customers 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 16

Chardon had the following financial results for last month. What type of responsibility centre do these financial results reflect?

Accepted Answer

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

Question 17

Comparing company results against industry benchmarks is often less useful than comparing actual results against budget amount.

Accepted Answer

A) True 
 B)False

Question 18

Roberts Corporation has an ROI of 23%, total assets of $5,250,000, and current liabilities of $950,000. What is Roberts Corporation's operating income?

Accepted Answer

A)  $218,500 
B)  $1,207,500 
C)  $4,130,435 
D)  $22,826,087 
A)  $218,500 
B)  $1,207,500 
C)  $4,130,435 
D)  $22,826,087

Question 19

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 20

Which of the following perspectives from the balanced scorecard helps managers answer the question, "How do we look to shareholders?"

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

The number of new products developed would be an example of measuring which perspective?

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

When calculating Economic Value Added (EVA), the weighted average cost of capital replaces the target Return on Investment (ROI) as the expected rate of return.

Data on three unrelated companies are given in the following table. Fill in the missing information.

Use the information below to answer the following question(s): The following data relates to Logan Electric and its Light Bulb Division. -What is the Light Bulb Division's sales margin?

Flash Corporation has operating income of $180,000, a profit margin of 15%, and asset turnover of 2.0. The return on investment (ROI) for Flash Corporation would be closest to

Use the information below to answer the following question(s): Selected financial data for the Entertainment Division of Magic Enterprises is as follows: -What is the Entertainment Division's asset turnover?

The Jazz Division of Heights Recording Corporation had the following results last year. Management's target rate of return is 12% and the weighted average cost of capital is 9%. Its effective tax rate is 40%. Required: a. Calculate the return on investment (ROI). b. Calculate the residual income.

Key Performance Indicators are used to assess how well a company's objectives have been achieved.

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 Residual Income (RI)?

Which of the following perspectives from the balanced scorecard focuses on determining the company's "climate for action"?

Customer satisfaction, operational efficiency, and employee excellence are often measured as part of the balanced scorecard approach.

The percentage of market share would be an example of measuring which perspective?

The number of repeat customers would be an example of measuring which perspective?

Chardon had the following financial results for last month. What type of responsibility centre do these financial results reflect?

Comparing company results against industry benchmarks is often less useful than comparing actual results against budget amount.

Roberts Corporation has an ROI of 23%, total assets of $5,250,000, and current liabilities of $950,000. What is Roberts Corporation's operating income?

Which of the following is a disadvantage of decentralization?

Which of the following perspectives from the balanced scorecard helps managers answer the question, "How do we look to shareholders?"

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Cost Behaviour

Cost-Volume-Profit Analysis

Job Costing

Process Costing

Activity Based Costing

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Capital Investment Decisions and the Time Value of Money

Filters

Exam 11: Performance Evaluation and the Balanced Scorecard

The number of new products developed would be an example of measuring which perspective?

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

When calculating Economic Value Added (EVA), the weighted average cost of capital replaces the target Return on Investment (ROI) as the expected rate of return.

Data on three unrelated companies are given in the following table. Fill in the missing information.

Use the information below to answer the following question(s): The following data relates to Logan Electric and its Light Bulb Division. -What is the Light Bulb Division's sales margin?

Flash Corporation has operating income of $180,000, a profit margin of 15%, and asset turnover of 2.0. The return on investment (ROI) for Flash Corporation would be closest to

Use the information below to answer the following question(s): Selected financial data for the Entertainment Division of Magic Enterprises is as follows: -What is the Entertainment Division's asset turnover?

The Jazz Division of Heights Recording Corporation had the following results last year. Management's target rate of return is 12% and the weighted average cost of capital is 9%. Its effective tax rate is 40%. Required: a. Calculate the return on investment (ROI). b. Calculate the residual income.

Key Performance Indicators are used to assess how well a company's objectives have been achieved.

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 Residual Income (RI)?

Which of the following perspectives from the balanced scorecard focuses on determining the company's "climate for action"?

Customer satisfaction, operational efficiency, and employee excellence are often measured as part of the balanced scorecard approach.

The percentage of market share would be an example of measuring which perspective?

The number of repeat customers would be an example of measuring which perspective?

Chardon had the following financial results for last month. What type of responsibility centre do these financial results reflect?

Comparing company results against industry benchmarks is often less useful than comparing actual results against budget amount.

Roberts Corporation has an ROI of 23%, total assets of $5,250,000, and current liabilities of $950,000. What is Roberts Corporation's operating income?

Which of the following is a disadvantage of decentralization?

Which of the following perspectives from the balanced scorecard helps managers answer the question, "How do we look to shareholders?"

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Cost Behaviour

Cost-Volume-Profit Analysis

Job Costing

Process Costing

Activity Based Costing

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Capital Investment Decisions and the Time Value of Money

Filters