Exam 25: Performance Management and Evaluation

The balanced scorecard links the perspectives of an organization's stakeholders with the organization's

The manager of Center D designs, produces, and sells products to external parties. The manager makes both long-term and short-term decisions. What type of responsibility center is Center D?

The alignment of an organization's strategy with all the perspectives of the balanced scorecard results in performance objectives that benefit all stakeholders.

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

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

Which of the following represents the number of sales dollars generated by each dollar invested in assets?

Compute the June 20xx cost of capital (rounded to nearest percent) for an investment center with the following information: Pre-tax operating income for June 20xx \ 17,500,000 Assets at June 30, 20xx 6,200,000 Current liabilities at June 30,20xx 4,000,000 Long-term liabilities at June 30,20xx 1,500,000 Income tax expense for June 30,20xx 5,000,000 EVA 12,040,000

As the staff accountant for Investment Center 713, calculate the October 20xx ROI, using the following information:

Manufacturing companies rarely utilize responsibility accounting.

ROI is a performance measure mainly connected with a company's income statement.

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

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

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

Many organizations utilize responsibility accounting

Determine the October 20xx ROI (rounded to two decimal places) for an investment center with the following information: Operating income for the month ended October 31, 20xx 5,200,000

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

Use the following performance report for a profit center of the Wet Cat Food Company for the month ended December 31 to answer the question below. What were the actual sales?

Kristen Roper oversees her company's largest and most profitable investment center. She has asked you, as her staff accountant, to compute the center's ROI, residual income, and EVA for the month of August 20xx, using the following information (rounded to two decimal places): August 20xx Pretax operating income \ 300,000 August 20xx sales 450,000 Assets at July 31, 20xx 500,000 Assets at August 31, 20xx 510,000 August 20xx income taxes 90,000 Current liabilities at August 31, 20xx 250,000 Cost of capital 19\% Desired ROI 52\%

Variable costing is utilized to evaluate the performance of

The balanced scorecard links the perspectives of an organization's stakeholders with the organization's mission and vision, performance measures, strategic plan, and resources.