Exam 11: Performance Measurement in Decentralized Organizations

Ricric Corporation has provided the following data for one of its products: The manufacturing cycle efficiency for this operation is closest to:

The North Division of the Lyman Company reported the following data for last year: The residual income for the North Division last year was:

Contribution income statements are used to measure the performance of:

Manufacturing Cycle Efficiency (MCE)is computed as:

Given the following data: Return on investment (ROI)would be:

Aguilera Industries is a division of a major corporation.Data concerning the most recent year appears below: The division's turnover is closest to:

Daab Products is a division of a major corporation.The following data are for the most recent year of operations: The division's residual income is closest to:

Last year the Uptown Division of Gorcen Enterprises had sales of $300, 000 and a net operating income of $24, 000.The average operating assets at Uptown last year amounted to $120, 000. Last year at Uptown the return on investment was:

Rintharamy Corporation's management reports that its average delivery cycle time is 25.2 days, its average throughput time is 7.6 days, its manufacturing cycle efficiency (MCE)is 0.25, its average move time is 0.9 day, and its average queue time is 4.0 days. Required: a.What is the wait time? b.What is the process time? c.What is the inspection time?

Nash Corporation manufactures and sells custom snowmobiles.From the time an order is placed till the time the snowmobile reaches the customer averages 50 days.This 50 days is spent as follows: What is Nash's manufacturing cycle efficiency (MCE)for its snowmobiles?

Aguilera Industries is a division of a major corporation.Data concerning the most recent year appears below: The division's margin is closest to:

Baad Industries is a division of a major corporation.Last year the division had total sales of $20, 440, 000, net operating income of $1, 860, 040, and average operating assets of $7, 000, 000. The division's margin is closest to:

Hysong Corporation uses residual income to evaluate the performance of its divisions.The minimum required rate of return for performance evaluation purposes is 11%.The Games Division had average operating assets of $530, 000 and net operating income of $56, 200 in June. Required: What was the Games Division's residual income in June?

The Consumer Products Division of Mickolick Corporation had average operating assets of $450, 000 and net operating income of $38, 700 in August.The minimum required rate of return for performance evaluation purposes is 10%. What was the Consumer Products Division's minimum required return in August?

Jolin Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below: The manufacturing cycle efficiency (MCE)was closest to:

Faas Wares is a division of a major corporation.The following data are for the latest year of operations: Required: a.What is the division's return on investment (ROI)? b.What is the division's residual income?

Fruchter Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below: The throughput time was:

Net operating income is income after interest and taxes.

Handle Fabrication is a division of a major corporation.Last year the division had total sales of $36, 160, 000, net operating income of $2, 892, 800, and average operating assets of $8, 000, 000.The company's minimum required rate of return is 12%. Required: What is the division's return on investment (ROI)?

Emerich Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below: The manufacturing cycle efficiency (MCE)was closest to: