Question 1

The practice of delegating decision-making authority to lower levels of management in a company is called centralization.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following performance measures uses after-tax operating income and the actual cost of capital employed?

Accepted Answer

A) return on investment (ROI) 
B) residual income 
C) economic value added (EV
A)  
D) margin 
A) return on investment (ROI) 
B) residual income 
C) economic value added (EV
A)  
D) margin

Question 3

Return on investment is just a specific way of calculating residual income

Accepted Answer

A) True 
 B)False

Question 4

Match each term with the correct statement from below.
-A(n)___________ is a responsibility centre in which a manager is responsible for sales,costs,and investments.

Accepted Answer

A) Centralization 
B) Revenue centre 
C) Profit centre 
D) Cost centre 
E) Investment centre
F)Decentralization 
A) Centralization 
B) Revenue centre 
C) Profit centre 
D) Cost centre 
E) Investment centre
F)Decentralization

Question 5

Which of the following statements is characteristic of Manufacturing Cycle Efficiency (MCE)?

Accepted Answer

A) MCE takes on values between 0 and 100. 
B) The lower the MCE, the more efficient the firm. 
C) MCE is used by manufacturing firms only. 
D) As MCE improves, cycle time decreases. 
A) MCE takes on values between 0 and 100. 
B) The lower the MCE, the more efficient the firm. 
C) MCE is used by manufacturing firms only. 
D) As MCE improves, cycle time decreases.

The practice of delegating decision-making authority to lower levels of management in a company is called centralization.

Which of the following performance measures uses after-tax operating income and the actual cost of capital employed?

Return on investment is just a specific way of calculating residual income

Match each term with the correct statement from below. -A(n)___________ is a responsibility centre in which a manager is responsible for sales,costs,and investments.

Which of the following statements is characteristic of Manufacturing Cycle Efficiency (MCE)?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 12: Performance Evaluation and Decentralization

The practice of delegating decision-making authority to lower levels of management in a company is called centralization.

Which of the following performance measures uses after-tax operating income and the actual cost of capital employed?

Return on investment is just a specific way of calculating residual income

Match each term with the correct statement from below. -A(n)___________ is a responsibility centre in which a manager is responsible for sales,costs,and investments.

Which of the following statements is characteristic of Manufacturing Cycle Efficiency (MCE)?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters