Question 1

Which of the following is the formula for investment assuming that total assets employed is the measure?

Accepted Answer

A) total assets available minus the sum of idle assets 
B) total assets available minus the sum of idle assets and assets purchased for future expansion 
C) total assets available minus assets purchased for future expansion 
D) total assets minus current liabilities 
A) total assets available minus the sum of idle assets 
B) total assets available minus the sum of idle assets and assets purchased for future expansion 
C) total assets available minus assets purchased for future expansion 
D) total assets minus current liabilities

Question 2

Some companies,make environmental performance a line item on every employee's salary appraisal report.

Accepted Answer

A) True 
 B)False

Question 3

Waldorf Company has two sources of funds: long-term debt with a market and book value of $5,200,000 issued at an interest rate of 13%,and equity capital that has a market value of $4,200,000 (book value of $2,400,000).Waldorf Company has profit centers in the following locations with the following operating incomes,total assets,and current liabilities.The cost of equity capital is 13%,while the tax rate is 25%.
 
What is the EVA® for Cedar Rapids? (Round intermediary calculations to four decimal places. )

Accepted Answer

A) $275,720 
B) $465,000 
C) $430,720 
D) $241,000 
A) $275,720 
B) $465,000 
C) $430,720 
D) $241,000

Question 4

Which of the following is a difference between a diagnostic control system and an interactive control system?

Accepted Answer

A) A diagnostic control system focuses on meeting expectations,while an interactive control system focuses on standards of ethical behavior. 
B) A diagnostic control system focuses on standards of ethical behavior while an interactive control system focuses on meeting expectations. 
C) A diagnostic control system focuses on meeting expectations,while an interactive control system focuses on organizational attention and learning on key strategic issues. 
D) A diagnostic control system focuses on organizational attention and learning on key strategic issues,while an interactive control system focuses on meeting expectations. 
A) A diagnostic control system focuses on meeting expectations,while an interactive control system focuses on standards of ethical behavior. 
B) A diagnostic control system focuses on standards of ethical behavior while an interactive control system focuses on meeting expectations. 
C) A diagnostic control system focuses on meeting expectations,while an interactive control system focuses on organizational attention and learning on key strategic issues. 
D) A diagnostic control system focuses on organizational attention and learning on key strategic issues,while an interactive control system focuses on meeting expectations.

Question 5

The top management at Amore Corp,a manufacturer of computer games,is attempting to recover from a flood that destroyed some of their accounting records.The main computer system was also severely damaged.The following information was salvaged:
 
What is the Alpha Division's return on sales (e)?

Accepted Answer

A) 38.5% 
B) 160.0% 
C) 62.5% 
D) 37.5% 
A) 38.5% 
B) 160.0% 
C) 62.5% 
D) 37.5%

Question 6

Team incentives encourage cooperation by ________.

Accepted Answer

A) identifying an efficient and a nonefficient employee 
B) enhancing the incentives of individual employees leading to overall positive performance 
C) letting individuals help one another as they strive toward a common goal 
D) rewarding all teams by the same margin 
A) identifying an efficient and a nonefficient employee 
B) enhancing the incentives of individual employees leading to overall positive performance 
C) letting individuals help one another as they strive toward a common goal 
D) rewarding all teams by the same margin

Question 7

Carriage Incorporated manufactures horse carriages.The company has two divisions,Wheels and Assembly.Because of different accounting methods and inflation rates,the company is considering multiple evaluation measures.The following information is provided for 2018:
 
The company is currently using a 12% required rate of return.
What are Wheels's and Assembly's return on investment based on book values,respectively?

Accepted Answer

A) 27%;12% 
B) 27%;21% 
C) 12%;27% 
D) 21%;27% 
A) 27%;12% 
B) 27%;21% 
C) 12%;27% 
D) 21%;27%

Question 8

Batman Abstract Company has three divisions that operate autonomously.Their results for 2015 are as follows:
   
The company's desired rate of return is 20%.
Required:
a.Compute each division's ROI.
b.Compute each division's residual income.
c.Rank each division by both ROI and residual income.
d.Which division had the best performance in 2015? Why?

Accepted Answer

@#IMG-DLM&_TB5540_00_TB5540_00 b.
 @#IMG-DLM&_TB55

Question 9

A major weakness of comparing two companies using only operating incomes as the basis of comparison is that it ignores the differences in the size of the investment and therefore any concept of yield or return on investment.

Accepted Answer

A) True 
 B)False

Question 10

Coldbrook Company has two sources of funds: long-term debt with a market and book value of $17,000,000 issued at an interest rate of 11%,and equity capital that has a market value of $6,000,000 (book value of $5,500,000).Coldbrook Company has profit centers in the following locations with the following operating incomes,total assets,and current liabilities.The cost of equity capital is 15%,while the tax rate is 35%.
 
What is the EVA® for Stonybrook? (Round intermediary calculations to four decimal places. )

Accepted Answer

A) $1,184,600 
B) $1,755,000 
C) $570,400 
D) $658,693 
A) $1,184,600 
B) $1,755,000 
C) $570,400 
D) $658,693

Which of the following is the formula for investment assuming that total assets employed is the measure?

Some companies,make environmental performance a line item on every employee's salary appraisal report.

Which of the following is a difference between a diagnostic control system and an interactive control system?

The top management at Amore Corp,a manufacturer of computer games,is attempting to recover from a flood that destroyed some of their accounting records.The main computer system was also severely damaged.The following information was salvaged: What is the Alpha Division's return on sales (e)?

Team incentives encourage cooperation by ________.

A major weakness of comparing two companies using only operating incomes as the basis of comparison is that it ignores the differences in the size of the investment and therefore any concept of yield or return on investment.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets,direct-Cost Variances,and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy,balanced Scorecard,and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Filters

Exam 23: Performance Measurement, compensation, and Multinational Considerations

Which of the following is the formula for investment assuming that total assets employed is the measure?

Some companies,make environmental performance a line item on every employee's salary appraisal report.

Which of the following is a difference between a diagnostic control system and an interactive control system?

The top management at Amore Corp,a manufacturer of computer games,is attempting to recover from a flood that destroyed some of their accounting records.The main computer system was also severely damaged.The following information was salvaged: What is the Alpha Division's return on sales (e)?

Team incentives encourage cooperation by ________.

A major weakness of comparing two companies using only operating incomes as the basis of comparison is that it ignores the differences in the size of the investment and therefore any concept of yield or return on investment.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets,direct-Cost Variances,and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy,balanced Scorecard,and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Filters