Exam 10: Flexible Budgets and Performance Analysis

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The following information relates to the Quilt Division of TDS Corporation for last year: Assume that Quilt was being evaluated solely on the basis of residual income.Which of the following investment opportunities would Quilt want to invest in?

(Multiple Choice)

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Question 101

The following data pertain to operations at Quick Incorporated: The wait time for this operation would be:

(Multiple Choice)

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Question 102

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 return on investment (ROI)is closest to:

(Multiple Choice)

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Question 103

Suppose a company evaluates divisional performance using both ROI and residual income.The company's minimum required rate of return for the purposes of residual income calculations is 12%.If a division has a residual income of $6,000,then its ROI is greater than 12%.

(True/False)

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Question 104

Average operating assets is used in the numerator to compute turnover in an ROI analysis.

(True/False)

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Question 105

Ok Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: The manufacturing cycle efficiency (MCE)was closest to:

(Multiple Choice)

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Question 106

Residual income should not be used to evaluate a profit center.

(True/False)

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Question 107

The Portland Division's operating data for the past two years is as follows: The Portland Division's margin in Year 2 was 150% of the margin for Year 1. The sales for Year 2 were:

(Multiple Choice)

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Question 108

The following data pertain to operations at Quick Incorporated: The manufacturing cycle efficiency (MCE)for this operation would be:

(Multiple Choice)

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Question 109

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?

(Multiple Choice)

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Question 110

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

(Multiple Choice)

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Question 111

The Jenkins Division recorded operating data as follows for the past year: For the past year,the margin used in ROI calculations was:

(Multiple Choice)

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Question 112

A company that is seeking to increase ROI should attempt to decrease:

(Multiple Choice)

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Question 113

Net operating income is defined as:

(Multiple Choice)

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Question 114

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

(Multiple Choice)

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Question 115

Showing 101 - 115 of 115

The following information relates to the Quilt Division of TDS Corporation for last year: Assume that Quilt was being evaluated solely on the basis of residual income.Which of the following investment opportunities would Quilt want to invest in?

The following data pertain to operations at Quick Incorporated: The wait time for this operation would be:

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 return on investment (ROI)is closest to:

Suppose a company evaluates divisional performance using both ROI and residual income.The company's minimum required rate of return for the purposes of residual income calculations is 12%.If a division has a residual income of $6,000,then its ROI is greater than 12%.

Average operating assets is used in the numerator to compute turnover in an ROI analysis.

Ok Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: The manufacturing cycle efficiency (MCE)was closest to:

Residual income should not be used to evaluate a profit center.

The Portland Division's operating data for the past two years is as follows: The Portland Division's margin in Year 2 was 150% of the margin for Year 1. The sales for Year 2 were:

The following data pertain to operations at Quick Incorporated: The manufacturing cycle efficiency (MCE)for this operation would be:

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?

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

The Jenkins Division recorded operating data as follows for the past year: For the past year,the margin used in ROI calculations was:

A company that is seeking to increase ROI should attempt to decrease:

Net operating income is defined as:

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

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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