Determine the October 20xx ROI (rounded to two decimal places) for an investment center with the following information: $\begin{array}{|l|l|} \hline \text { Assets at September } 30,20 \mathrm{xx} & \$ 20,000,000 \\ \hline \text { Assets at October } 31,20 \mathrm{xx} & 22,000,000 \\ \hline \text { Assets at October } 15,20 \mathrm{xx} & 18,595,000 \\ \hline & \\ \hline \text { Operating income for the month ended October } 31,20 \mathrm{xx} & 5,000,000.0 \\ \hline \end{array}$ Operating income for the month ended October 31, 20xx 5,000,000.0

A) 25.8 percent B) 21.8 percent C) 23.8 percent D) 27.8 percent A) 25.8 percent B) 21.8 percent C) 23.8 percent D) 27.8 percent

Determine the February 20xx residual income for an investment center with the following information: $\begin{array}{|l|l|} \hline \text { Operating income for the month ended February } 28,20 \mathrm{xx} & \$ 2,900,000 \\ \hline \text { Desired ROI } & 52 \% \\ \hline \text { Actual ROI } & 38 \% \\ \hline \text { Assetsinvested } & \$ 18,200,000 \\ \hline \end{array}$

A) ($4,016,000) B) ($5,836,000) C) ($6,564,000) D) ($8,384,000) A) ($4,016,000) B) ($5,836,000) C) ($6,564,000) D) ($8,384,000)

Determine the April 20xx residual income for an investment center with the following information: $\begin{array}{|l|l|} \hline \text { Operating income for the month ended April 30,20:x } & \$ 14,900,000 \\ \hline \text { Assets at March 31, 20:sx } & 10,200,000 \\ \hline \text { Assets at April 30, 20:x } & 13,150,000 \\ \hline \text { Desired ROI } & 49 \% \\ \hline \text { Actual ROI } & 60 \% \\ \hline \end{array}$

A) $8,456,500 B) $8,780,000 C) $9,179,250 D) $8,945,750 A) $8,456,500 B) $8,780,000 C) $9,179,250 D) $8,945,750

Exam 7: Performance Management and Evaluation

Using the following information, prepare a single report setting forth the variable costing income statement as well as a performance report for Profit Center West. Budgeted sales \ 20,000 Budgeted sales variance \ 5,000 (F) Actual variable cost of goods sold \ 8,000 Actual variable cost of goods sold variance \ 10,000 (F) Budgeted variable selling expenses \ 5,000 Actual variable selling expenses \ 3,000 Budgeted fixed manufacturing costs \ 1,000 Budgeted fixed manufacturing costs variance \ 50 (F) Budgeted fixed selling expenses \ 2,000 Budgeted fixed selling expenses variance \ 100 (F) Actual number of orclers processed 100 Actual number of orders processsed variance 10 () Budgeted average daily sales \ 500 Budgeted average daily sales variance \ 200 (F) Actual number of urits sold 450 Actual number of urits sold variance 25 (F)

Free

(Essay)

4.9/5

(42)

Question 1

Correct Answer:

Verified

$\begin{array}{|l|l|l|l|}\hline &\text { Master Bulget } & \text { Actual Results } & \text { Varinice }\\\hline \text { Sales } & \$ 20,000 & \$ 25,000 & \$ 5,000(\mathrm{~F}) \\\hline \text { Variable cost of goods sold } & 18,000 & 8,000 & 10,000(\mathrm{~F}) \\\hline \text { Variable sellingexpenses } & 5,000 & 3,000 & 2,000(\mathrm{~F}) \\\hline \text { Contribution margin } & \$ 3,000) & \$ 14,000 & \$ 17,000(\mathrm{~F}) \\\hline \text { Fixed manufacturing costs } & 1,000 & 950 & 50(\mathrm{~F}) \\\hline \text { Fixed selling expense } & 2,000 & 1,900 & 100(\mathrm{~F}) \\\hline \text { Profit center income } &( \$ 6,000) & \$ 11,150 & \$ 17,150(\mathrm{~F}) \\\hline & & & \\\hline \text { Number of orders processed } & 110 & 100 & 10(\mathrm{U}) \\\hline \text { Daily sales } & \$ 500 & \$ 700 & \$ 200(\mathrm{~F}) \\\hline \text { Number of units sold } & 425 & 450 & 25(\mathrm{~F}) \\\hline\end{array}$

A variable costing income statement is essentially the same as a traditional income statement.

Free

(True/False)

4.9/5

(39)

Question 2

Correct Answer:

Verified

False

Provide three examples of something that an organization might want to measure and a performance measurement that could be utilized in each example.

Free

(Essay)

4.9/5

(36)

Question 3

Correct Answer:

Verified

Answers will vary. The following are three examples.
$\begin{array}{ll} \text { What to Measure} & \text {Performance Measurement } \\ \text { 1. Service quality} & \text {Number of customer complaints } \\ \text { 2. Expenditures on a monthly basis } & \text {Monthly expenditure budgets } \\ \text { 3. Effectiveness of new computerized ass sembly line} & \text { Monthly mimber of defective products produced } \\\end{array}$

The effectiveness of a performance management and evaluation system depends on how well it coordinates the goals of

(Multiple Choice)

5.0/5

(29)

Question 4

In developing performance measures, management must consider which of the following?

(Multiple Choice)

4.8/5

(35)

Question 5

Determine the October 20xx ROI (rounded to two decimal places) for an investment center with the following information: Assets at September 30,20 \ 20,000,000 Assets at October 31,20 22,000,000 Assets at October 15,20 18,595,000 Operating income for the month ended October 31,20 5,000,000.0 Operating income for the month ended October 31, 20xx 5,000,000.0

(Multiple Choice)

4.8/5

(32)

Question 6

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?

(Multiple Choice)

4.8/5

(34)

Question 7

To succeed, an organization must add value for all of its stakeholders in the long term only.

(True/False)

4.9/5

(37)

Question 8

For residual income figures to be comparable on a companywide basis, all investment centers must have equal access to resources and similar asset investment bases.

(True/False)

4.8/5

(34)

Question 9

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

(True/False)

4.8/5

(31)

Question 10

The balanced scorecard was developed by

(Multiple Choice)

4.8/5

(39)

Question 11

An organization's four basic stakeholder groups include investors, employees, external business processes, and customers.

(True/False)

4.8/5

(36)

Question 12

Both flexible budgeting and variable costing can be utilized to evaluate cost center performance.

(True/False)

4.8/5

(38)

Question 13

The manager of Center C is responsible for the online order operations of a large retailer. What type of responsibility center is Center C?

(Multiple Choice)

4.8/5

(37)

Question 14

Determine the February 20xx residual income for an investment center with the following information: Operating income for the month ended February 28,20 \ 2,900,000 Desired ROI 52\% Actual ROI 38\% Assetsinvested \ 18,200,000

(Multiple Choice)

4.8/5

(37)

Question 15

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the question below. - What is the direct materials variance between the actual results and the flexible budget?

(Multiple Choice)

4.8/5

(41)

Question 16

By balancing all stakeholders' needs, managers are more likely to achieve their objectives in

(Multiple Choice)

4.8/5

(35)

Question 17

Determine the April 20xx residual income for an investment center with the following information: Operating income for the month ended April 30,20:x \ 14,900,000 Assets at March 31, 20:sx 10,200,000 Assets at April 30, 20:x 13,150,000 Desired ROI 49\% Actual ROI 60\%

(Multiple Choice)

4.8/5

(34)

Question 18

Which of the following performance measures is most concerned with long-term financial performance?

(Multiple Choice)

4.7/5

(44)

Question 19

Using the following information, prepare a traditional income statement and a variable costing income statement: Sales \ 4,000,000 Variable cost of goods sold 1800,000 Variable selling expenses 900,000 Fixed selling expenses 100,000 Fixed manufacturing costs 600,000

(Essay)

4.9/5

(39)

Question 20

A variable costing income statement is essentially the same as a traditional income statement.

Provide three examples of something that an organization might want to measure and a performance measurement that could be utilized in each example.

The effectiveness of a performance management and evaluation system depends on how well it coordinates the goals of

In developing performance measures, management must consider which of the following?

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?

To succeed, an organization must add value for all of its stakeholders in the long term only.

For residual income figures to be comparable on a companywide basis, all investment centers must have equal access to resources and similar asset investment bases.

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 balanced scorecard was developed by

An organization's four basic stakeholder groups include investors, employees, external business processes, and customers.

Both flexible budgeting and variable costing can be utilized to evaluate cost center performance.

The manager of Center C is responsible for the online order operations of a large retailer. What type of responsibility center is Center C?

Determine the February 20xx residual income for an investment center with the following information: Operating income for the month ended February 28,20 \ 2,900,000 Desired ROI 52\% Actual ROI 38\% Assetsinvested \ 18,200,000

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the question below. - What is the direct materials variance between the actual results and the flexible budget?

By balancing all stakeholders' needs, managers are more likely to achieve their objectives in

Determine the April 20xx residual income for an investment center with the following information: Operating income for the month ended April 30,20:x \ 14,900,000 Assets at March 31, 20:sx 10,200,000 Assets at April 30, 20:x 13,150,000 Desired ROI 49\% Actual ROI 60\%

Which of the following performance measures is most concerned with long-term financial performance?

Using the following information, prepare a traditional income statement and a variable costing income statement: Sales \ 4,000,000 Variable cost of goods sold 1800,000 Variable selling expenses 900,000 Fixed selling expenses 100,000 Fixed manufacturing costs 600,000

The Changing Business Environment - a Managers Perspective

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Value-Based Systems- Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, Incl Target Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

Filters