Question 1

All other things being the same,a decrease in average operating assets will decrease return on investment (ROI).

Accepted Answer

A) True 
 B)False

Question 2

Consider the following three conditions: I.An increase in sales
II)An increase in operating assets
III)A reduction in expenses
Which of the above conditions provide a way in which a manager can improve return on investment?

Accepted Answer

A) Only I 
B) Only I and II 
C) Only I and III 
D) Only II and III 
A) Only I 
B) Only I and II 
C) Only I and III 
D) Only II and III

Question 3

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

Accepted Answer

A) 32.3% 
B) 25.0% 
C) 29.2% 
D) 7.3% 
A) 32.3% 
B) 25.0% 
C) 29.2% 
D) 7.3%

Question 4

Throughput Time consists of:

Accepted Answer

A) Process Time. 
B) Inspection Time and Move Time. 
C) Process Time,Inspection Time,and Move Time. 
D) Process Time,Inspection Time,Move Time,and Queue Time. 
A) Process Time. 
B) Inspection Time and Move Time. 
C) Process Time,Inspection Time,and Move Time. 
D) Process Time,Inspection Time,Move Time,and Queue Time.

Question 5

Contribution income statements are used to measure the performance of:

Accepted Answer

A) cost centers. 
B) both cost centers and profit centers. 
C) both cost centers and investment centers. 
D) both profit centers and investment centers. 
A) cost centers. 
B) both cost centers and profit centers. 
C) both cost centers and investment centers. 
D) both profit centers and investment centers.

Question 6

Cabal Products is a division of a major corporation.Last year the division had total sales of $10,040,000,net operating income of $582,320,and average operating assets of $4,000,000.The company's minimum required rate of return is 14%. The division's residual income is closest to:

Accepted Answer

A) $582,320 
B) $22,320 
C) ($823,280) 
D) $1,142,320 
A) $582,320 
B) $22,320 
C) ($823,280) 
D) $1,142,320

Question 7

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. At Uptown the turnover used to calculate ROI last year was:

Accepted Answer

A) 0.4 
B) 2.5 
C) 3.2 
D) 5.0 
A) 0.4 
B) 2.5 
C) 3.2 
D) 5.0

Question 8

The following data pertain to operations at Quick Incorporated:   The combined inspection and move time for this operation would be:

Accepted Answer

A) 4 hours 
B) 1 hour 
C) 2 hours 
D) cannot be determined from information provided 
A) 4 hours 
B) 1 hour 
C) 2 hours 
D) cannot be determined from information provided

Question 9

Eacher 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 margin?
b.What is the division's turnover?
c.What is the division's return on investment (ROI)?
d.What is the division's residual income?

Accepted Answer

a.Margin = Net operating income ÷ Sales

Question 10

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?

Accepted Answer

A) $3,870 
B) $38,700 
C) $48,870 
D) $45,000 
A) $3,870 
B) $38,700 
C) $48,870 
D) $45,000

Question 11

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:

Accepted Answer

A) 8% 
B) 12% 
C) 20% 
D) 40% 
A) 8% 
B) 12% 
C) 20% 
D) 40%

Question 12

Daab Products is a division of a major corporation.The following data are for the most recent year of operations:   The division's return on investment (ROI)is closest to:

Accepted Answer

A) 10.8% 
B) 41.5% 
C) 0.3% 
D) 2.2% 
A) 10.8% 
B) 41.5% 
C) 0.3% 
D) 2.2%

Question 13

The following information relates to last year's operations at the Bread Division of Rison Bakery Inc.:   What was the Bread Division's minimum required rate of return last year?

Accepted Answer

A) 12% 
B) 4% 
C) 15% 
D) 20% 
A) 12% 
B) 4% 
C) 15% 
D) 20%

Question 14

A manufacturing cycle efficiency (MCE)ratio close to 1.00 is desirable because this is the ratio of value-added time to throughput time.

Accepted Answer

A) True 
 B)False

Question 15

ROI and residual income are tools used to evaluate managerial performance in profit centers.

Accepted Answer

A) True 
 B)False

Question 16

Cabal Products is a division of a major corporation.Last year the division had total sales of $10,040,000,net operating income of $582,320,and average operating assets of $4,000,000.The company's minimum required rate of return is 14%. The division's return on investment (ROI)is closest to:

Accepted Answer

A) 4.1% 
B) 14.6% 
C) 36.6% 
D) 0.9% 
A) 4.1% 
B) 14.6% 
C) 36.6% 
D) 0.9%

Question 17

A balanced scorecard should not contain any performance measures concerning customer satisfaction since the extent to which customers are satisfied is beyond the control of any manager in the company.

Accepted Answer

A) True 
 B)False

Question 18

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?

Accepted Answer

a.Delivery cycle time = Wait time + Thro

Question 19

Brandon Inc. ,has provided the following data for last year's operations:   Brandon's residual income is:

Accepted Answer

A) $2,000 
B) $4,000 
C) $3,500 
D) $2,500 
A) $2,000 
B) $4,000 
C) $3,500 
D) $2,500

Question 20

Chabot Company had the following results last year: net operating income,$2,160;turnover,5;and ROI 18%.Chabot Company's average operating assets were:

Accepted Answer

A) $300,000 
B) $60,000 
C) $10,800 
D) $12,000 
A) $300,000 
B) $60,000 
C) $10,800 
D) $12,000

All other things being the same,a decrease in average operating assets will decrease return on investment (ROI).

Consider the following three conditions: I.An increase in sales II)An increase in operating assets III)A reduction in expenses Which of the above conditions provide a way in which a manager can improve return on investment?

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

Throughput Time consists of:

Contribution income statements are used to measure the performance of:

Cabal Products is a division of a major corporation.Last year the division had total sales of $10,040,000,net operating income of $582,320,and average operating assets of $4,000,000.The company's minimum required rate of return is 14%. 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. At Uptown the turnover used to calculate ROI last year was:

The following data pertain to operations at Quick Incorporated: The combined inspection and move time for this operation would be:

Eacher 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 margin? b.What is the division's turnover? c.What is the division's return on investment (ROI)? d.What is the division's residual income?

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?

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:

Daab Products is a division of a major corporation.The following data are for the most recent year of operations: The division's return on investment (ROI)is closest to:

The following information relates to last year's operations at the Bread Division of Rison Bakery Inc.: What was the Bread Division's minimum required rate of return last year?

A manufacturing cycle efficiency (MCE)ratio close to 1.00 is desirable because this is the ratio of value-added time to throughput time.

ROI and residual income are tools used to evaluate managerial performance in profit centers.

Cabal Products is a division of a major corporation.Last year the division had total sales of $10,040,000,net operating income of $582,320,and average operating assets of $4,000,000.The company's minimum required rate of return is 14%. The division's return on investment (ROI)is closest to:

A balanced scorecard should not contain any performance measures concerning customer satisfaction since the extent to which customers are satisfied is beyond the control of any manager in the company.

Brandon Inc. ,has provided the following data for last year's operations: Brandon's residual income is:

Chabot Company had the following results last year: net operating income,$2,160;turnover,5;and ROI 18%.Chabot Company's average operating assets were:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Supplement: Process Costing Using the Fifo Method

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Differential Analysis: The Key to Decision Making

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variance

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

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Exam 10: Flexible Budgets and Performance Analysis

All other things being the same,a decrease in average operating assets will decrease return on investment (ROI).

Consider the following three conditions: I.An increase in sales II)An increase in operating assets III)A reduction in expenses Which of the above conditions provide a way in which a manager can improve return on investment?

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

Throughput Time consists of:

Contribution income statements are used to measure the performance of:

Cabal Products is a division of a major corporation.Last year the division had total sales of $10,040,000,net operating income of $582,320,and average operating assets of $4,000,000.The company's minimum required rate of return is 14%. 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. At Uptown the turnover used to calculate ROI last year was:

The following data pertain to operations at Quick Incorporated: The combined inspection and move time for this operation would be:

Eacher 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 margin? b.What is the division's turnover? c.What is the division's return on investment (ROI)? d.What is the division's residual income?

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?

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:

Daab Products is a division of a major corporation.The following data are for the most recent year of operations: The division's return on investment (ROI)is closest to:

The following information relates to last year's operations at the Bread Division of Rison Bakery Inc.: What was the Bread Division's minimum required rate of return last year?

A manufacturing cycle efficiency (MCE)ratio close to 1.00 is desirable because this is the ratio of value-added time to throughput time.

ROI and residual income are tools used to evaluate managerial performance in profit centers.

Cabal Products is a division of a major corporation.Last year the division had total sales of $10,040,000,net operating income of $582,320,and average operating assets of $4,000,000.The company's minimum required rate of return is 14%. The division's return on investment (ROI)is closest to:

A balanced scorecard should not contain any performance measures concerning customer satisfaction since the extent to which customers are satisfied is beyond the control of any manager in the company.

Brandon Inc. ,has provided the following data for last year's operations: Brandon's residual income is:

Chabot Company had the following results last year: net operating income,$2,160;turnover,5;and ROI 18%.Chabot Company's average operating assets were:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Supplement: Process Costing Using the Fifo Method

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Differential Analysis: The Key to Decision Making

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variance

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

Filters