Question 1

What was the Consumer Products Division's minimum required return in March?

Accepted Answer

A) $7,812 
B) $76,212 
C) $68,400 
D) $65,100 
A) $7,812 
B) $76,212 
C) $68,400 
D) $65,100

Question 2

Consider a company that has only variable costs. All other things the same, an increase in unit sales will result in no change in the return on investment.

Accepted Answer

A) True 
 B)False

Question 3

Ferris Wares is a division of a major corporation. The following data are for the latest year of operations: $\begin{array}{lr}
\text {Sales. }&\$ 12,700,000 \
\text {Net operating income }&\$ 1,054,100 \
\text {Average operating assets }&\$ 5,000,000 \
\text {The company's minimum required rate of retum. }&16 \%
\end{array}$ Required:
a. What is the division's return on investment (ROI)?
b. What is the division's residual income?

Accepted Answer

a. ROI = Net operating income ÷ Average

Question 4

The manufacturing cycle efficiency (MCE) for this operation is:

Accepted Answer

A) 55% 
B) 45% 
C) 6.6 hours 
D) 5.4 hours 
A) 55% 
B) 45% 
C) 6.6 hours 
D) 5.4 hours

Question 5

The division's margin is closest to:

Accepted Answer

A) 21.8% 
B) 5.0% 
C) 23.0% 
D) 28.0% 
A) 21.8% 
B) 5.0% 
C) 23.0% 
D) 28.0%

Question 6

A balanced scorecard should contain every performance measure that can be expected to influence a company's profits.

Accepted Answer

A) True 
 B)False

Question 7

The division's margin is closest to:

Accepted Answer

A) 39.7% 
B) 47.6% 
C) 7.9% 
D) 19.9% 
A) 39.7% 
B) 47.6% 
C) 7.9% 
D) 19.9%

Question 8

The minimum required rate of return in Year 1 was:

Accepted Answer

A) 18% 
B) 17% 
C) 16% 
D) 15% 
A) 18% 
B) 17% 
C) 16% 
D) 15%

Question 9

Which of the following is not an operating asset?

Accepted Answer

A) Cash 
B) Inventory 
C) Plant equipment 
D) Common stock 
A) Cash 
B) Inventory 
C) Plant equipment 
D) Common stock

Question 10

Net operating income in Year 2 amounted to:

Accepted Answer

A) $60,000 
B) $50,000 
C) $40,000 
D) $35,000 
A) $60,000 
B) $50,000 
C) $40,000 
D) $35,000

Question 11

Reed Company's sales last year totaled $150,000 and its return on investment (ROI) was 12%. If the company's turnover was 3, then its net operating income for the year must have been:

Accepted Answer

A) $6,000. 
B) $2,000. 
C) $18,000. 
D) it is impossible to determine from the data given. 
A) $6,000. 
B) $2,000. 
C) $18,000. 
D) it is impossible to determine from the data given.

Question 12

In August, the Universal Solutions Division of Jugan Corporation had average operating assets of $670,000 and net operating income of $77,500. The company uses residual income, with a minimum required rate of return of 12%, to evaluate the performance of its divisions. What was the Universal Solutions Division's residual income in August?

Accepted Answer

A) $2,900 
B) -$2,900 
C) -$9,300 
D) $9,300 
A) $2,900 
B) -$2,900 
C) -$9,300 
D) $9,300

Question 13

The throughput time was:

Accepted Answer

A) 4.2 hours 
B) 9.5 hours 
C) 30.6 hours 
D) 26.4 hours 
A) 4.2 hours 
B) 9.5 hours 
C) 30.6 hours 
D) 26.4 hours

What was the Consumer Products Division's minimum required return in March?

Consider a company that has only variable costs. All other things the same, an increase in unit sales will result in no change in the return on investment.

The manufacturing cycle efficiency (MCE) for this operation is:

The division's margin is closest to:

A balanced scorecard should contain every performance measure that can be expected to influence a company's profits.

The division's margin is closest to:

The minimum required rate of return in Year 1 was:

Which of the following is not an operating asset?

Net operating income in Year 2 amounted to:

Reed Company's sales last year totaled $150,000 and its return on investment (ROI) was 12%. If the company's turnover was 3, then its net operating income for the year must have been:

The throughput time was:

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters

Exam 13: Performance Measurement in Decentralized Organizations

What was the Consumer Products Division's minimum required return in March?

Consider a company that has only variable costs. All other things the same, an increase in unit sales will result in no change in the return on investment.

The manufacturing cycle efficiency (MCE) for this operation is:

The division's margin is closest to:

A balanced scorecard should contain every performance measure that can be expected to influence a company's profits.

The division's margin is closest to:

The minimum required rate of return in Year 1 was:

Which of the following is not an operating asset?

Net operating income in Year 2 amounted to:

Reed Company's sales last year totaled $150,000 and its return on investment (ROI) was 12%. If the company's turnover was 3, then its net operating income for the year must have been:

The throughput time was:

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters