Question 1

Appointing managers to be responsible for the performance of specific divisions of an entity assists in which of the following?

Accepted Answer

A)  Freeing up central management time for strategic long-term planning. 
B)  Improving the commitment and motivation of managers. 
C)  Improving the timeliness of and access to information as a result of localised decision making. 
D)  All of the options are ways in which appointing division managers assists an entity. 
A)  Freeing up central management time for strategic long-term planning. 
B)  Improving the commitment and motivation of managers. 
C)  Improving the timeliness of and access to information as a result of localised decision making. 
D)  All of the options are ways in which appointing division managers assists an entity. D

Question 2

If return on sales is 12% and investment turnover is 1.25 times,then the return on investment is ____________.

Accepted Answer

15%

Question 3

The Carbon Disclosure Project (CDP):

Accepted Answer

A)  focuses on assisting companies and cities rather than countries. 
B)  is a not-for-profit organisation. 
C)  provides a platform to measure, disclose, manage and share environmental information. 
D)  all of these options are true. 
A)  focuses on assisting companies and cities rather than countries. 
B)  is a not-for-profit organisation. 
C)  provides a platform to measure, disclose, manage and share environmental information. 
D)  all of these options are true. D

Question 4

Which of the following is a criticism of the Australian Government (2011)Clean Energy Future Legislative Package which sets up the carbon pricing mechanism?

Accepted Answer

A)  Carbon price reporting will burden businesses unnecessarily. 
B)  It will encourage an increase in offshore investments in countries that do not have a carbon price. 
C)  The carbon tax is not considered to be significant enough to encourage innovation. 
D)  All of these options are criticisms of this legislation. 
A)  Carbon price reporting will burden businesses unnecessarily. 
B)  It will encourage an increase in offshore investments in countries that do not have a carbon price. 
C)  The carbon tax is not considered to be significant enough to encourage innovation. 
D)  All of these options are criticisms of this legislation.

Question 5

Non-financial performance measures that help a business keep on track to achieve its goals are generally:

Accepted Answer

A)  balanced. 
B)  misunderstood. 
C)  short term. 
D)  operational. 
A)  balanced. 
B)  misunderstood. 
C)  short term. 
D)  operational.

Question 6

In using the balanced scorecard,which of the perspectives would most likely apply to the goals of 'survive','succeed' and 'prosper'?

Accepted Answer

A)  Financial. 
B)  Customer. 
C)  Internal operations. 
D)  Innovation and improvement activities. 
A)  Financial. 
B)  Customer. 
C)  Internal operations. 
D)  Innovation and improvement activities.

Question 7

When calculating ROI and RI under the opportunity cost principle the:

Accepted Answer

A)  original cost is used as the investment base. 
B)  written-down value is used as the investment base. 
C)  market value is used as the investment base. 
D)  none of the options would be used when calculating ROI and RI under the opportunity cost principle. 
A)  original cost is used as the investment base. 
B)  written-down value is used as the investment base. 
C)  market value is used as the investment base. 
D)  none of the options would be used when calculating ROI and RI under the opportunity cost principle.

Question 8

Which of the following statements regarding the balanced scorecard approach is true?

Accepted Answer

A)  The balanced scorecard uses only short-term performance measures. 
B)  The balanced scorecard uses only long-term performance measures. 
C)  The balanced scorecard is used because there is a causal relationship between all of the measures and their economic impact. 
D)  The balanced scorecard is designed to encourage the use of a wide range of measures to gauge performance. 
A)  The balanced scorecard uses only short-term performance measures. 
B)  The balanced scorecard uses only long-term performance measures. 
C)  The balanced scorecard is used because there is a causal relationship between all of the measures and their economic impact. 
D)  The balanced scorecard is designed to encourage the use of a wide range of measures to gauge performance.

Question 9

Non-financial performance measures should include _________________ such as past performance,targets,or industry averages.

Accepted Answer

The answer of Non-financial performance measures should include _________________ such...

Question 10

Emission trading schemes are expected to:

Accepted Answer

A)  promote the generation of renewable energy. 
B)  provide incentives to businesses and households to consume less energy. 
C)  all of these options are true. 
D)  encourage better management of land. 
A)  promote the generation of renewable energy. 
B)  provide incentives to businesses and households to consume less energy. 
C)  all of these options are true. 
D)  encourage better management of land.

Question 11

The Kyoto Protocol recommends a cap and trade scheme to help countries reduce their ___________ emissions.

Accepted Answer

The answer of The Kyoto Protocol recommends a cap and...

Question 12

A team-based reward scheme can cause:

Accepted Answer

A)  close attention to each person's performance. 
B)  individuals to be recognised for outstanding performance. 
C)  teams to fail to work together. 
D)  a slack employee to receive a bonus payment. 
A)  close attention to each person's performance. 
B)  individuals to be recognised for outstanding performance. 
C)  teams to fail to work together. 
D)  a slack employee to receive a bonus payment.

Question 13

If profit before tax is $210 000,required rate of return is 12% and the investment is $1 400 000,the residual income calculation is:

Accepted Answer

A)  15% 
B)  $168 000 
C)  $42 000 
D)  $1 190 000 
A)  15% 
B)  $168 000 
C)  $42 000 
D)  $1 190 000

Question 14

Non-financial measures should be:

Accepted Answer

A)  linked to the organisation's goals. 
B)  limited in number. 
C)  well-defined. 
D)  all of the above. 
A)  linked to the organisation's goals. 
B)  limited in number. 
C)  well-defined. 
D)  all of the above.

Question 15

If profit after tax is $600 000,taxation is $280 000,the required rate of return is 15%,and the investment is $2 000 000,the residual income calculation is:

Accepted Answer

A)  $300 000 
B)  15% 
C)  44% 
D)  $580 000 
A)  $300 000 
B)  15% 
C)  44% 
D)  $580 000

Question 16

When evaluating the performance of divisions:

Accepted Answer

A)  only controllable costs should be identified. 
B)  both controllable and non-controllable revenues and costs should be identified. 
C)  only uncontrollable revenues should be identified. 
D)  none of the options are correct. 
A)  only controllable costs should be identified. 
B)  both controllable and non-controllable revenues and costs should be identified. 
C)  only uncontrollable revenues should be identified. 
D)  none of the options are correct.

Question 17

From the list below,the best financial performance measure for a profit centre would be:

Accepted Answer

A)  cash inflows less cash outflows. 
B)  budgeted income less actual income. 
C)  budgeted costs less actual costs. 
D)  economic value added. 
A)  cash inflows less cash outflows. 
B)  budgeted income less actual income. 
C)  budgeted costs less actual costs. 
D)  economic value added.

Question 18

Which of these is an investment base that could be used in ROI and RI calculations?

Accepted Answer

A)  All of the options are possible investment bases for ROI and RI calculations. 
B)  Original cost. 
C)  Net book value. 
D)  Current cost. 
A)  All of the options are possible investment bases for ROI and RI calculations. 
B)  Original cost. 
C)  Net book value. 
D)  Current cost.

Question 19

Which of the following could undermine the value of the balanced scorecard to an entity?

Accepted Answer

A)  Using the scorecard as an extra level of top-down management control. 
B)  Not making available appropriate resources such as training for implementation of the balanced scorecard. 
C)  Not ensuring that top management are committed to the success of the balanced scorecard. 
D)  All of the options could undermine the value of the balanced scorecard to an entity. 
A)  Using the scorecard as an extra level of top-down management control. 
B)  Not making available appropriate resources such as training for implementation of the balanced scorecard. 
C)  Not ensuring that top management are committed to the success of the balanced scorecard. 
D)  All of the options could undermine the value of the balanced scorecard to an entity.

Question 20

__________________ is the term used to describe the focus on the efficient use of resources to minimise their impact on the environment.

Accepted Answer

The answer of __________________ is the term used to describe...

Appointing managers to be responsible for the performance of specific divisions of an entity assists in which of the following?

If return on sales is 12% and investment turnover is 1.25 times,then the return on investment is ____________.

The Carbon Disclosure Project (CDP):

Which of the following is a criticism of the Australian Government (2011)Clean Energy Future Legislative Package which sets up the carbon pricing mechanism?

Non-financial performance measures that help a business keep on track to achieve its goals are generally:

In using the balanced scorecard,which of the perspectives would most likely apply to the goals of 'survive','succeed' and 'prosper'?

When calculating ROI and RI under the opportunity cost principle the:

Which of the following statements regarding the balanced scorecard approach is true?

Non-financial performance measures should include _________________ such as past performance,targets,or industry averages.

Emission trading schemes are expected to:

The Kyoto Protocol recommends a cap and trade scheme to help countries reduce their ___________ emissions.

A team-based reward scheme can cause:

If profit before tax is $210 000,required rate of return is 12% and the investment is $1 400 000,the residual income calculation is:

Non-financial measures should be:

If profit after tax is $600 000,taxation is $280 000,the required rate of return is 15%,and the investment is $2 000 000,the residual income calculation is:

When evaluating the performance of divisions:

From the list below,the best financial performance measure for a profit centre would be:

Which of these is an investment base that could be used in ROI and RI calculations?

Which of the following could undermine the value of the balanced scorecard to an entity?

__________________ is the term used to describe the focus on the efficient use of resources to minimise their impact on the environment.

Introduction to Accounting and Business Decision Making

Accounting in Society

Business Structures

Business Transactions

Balance Sheet

Statement of Profit or Loss and Statement of Changes in Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Costvolumeprofit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Filters

Exam 14: Performance Measurement

Appointing managers to be responsible for the performance of specific divisions of an entity assists in which of the following?

If return on sales is 12% and investment turnover is 1.25 times,then the return on investment is ____________.

The Carbon Disclosure Project (CDP):

Which of the following is a criticism of the Australian Government (2011)Clean Energy Future Legislative Package which sets up the carbon pricing mechanism?

Non-financial performance measures that help a business keep on track to achieve its goals are generally:

In using the balanced scorecard,which of the perspectives would most likely apply to the goals of 'survive','succeed' and 'prosper'?

When calculating ROI and RI under the opportunity cost principle the:

Which of the following statements regarding the balanced scorecard approach is true?

Non-financial performance measures should include _________________ such as past performance,targets,or industry averages.

Emission trading schemes are expected to:

The Kyoto Protocol recommends a cap and trade scheme to help countries reduce their ___________ emissions.

A team-based reward scheme can cause:

If profit before tax is $210 000,required rate of return is 12% and the investment is $1 400 000,the residual income calculation is:

Non-financial measures should be:

If profit after tax is $600 000,taxation is $280 000,the required rate of return is 15%,and the investment is $2 000 000,the residual income calculation is:

When evaluating the performance of divisions:

From the list below,the best financial performance measure for a profit centre would be:

Which of these is an investment base that could be used in ROI and RI calculations?

Which of the following could undermine the value of the balanced scorecard to an entity?

__________________ is the term used to describe the focus on the efficient use of resources to minimise their impact on the environment.

Introduction to Accounting and Business Decision Making

Accounting in Society

Business Structures

Business Transactions

Balance Sheet

Statement of Profit or Loss and Statement of Changes in Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Costvolumeprofit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Filters