Exam 10: Performance Measurement in Decentralized Organizations

Eckels 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?

Beall Industries is a division of a major corporation. Last year the division had total sales of $20,160,000, net operating income of $1,592,640, and average operating assets of $8,000,000. -The division's margin is closest to:

The following data pertain to the Whalen Division of Northern Industries. The margin at Whalen was exactly the same in Year 2 as it was in Year 1. -The minimum required rate of return in Year 1 was:

In computing the margin in a ROI analysis,which of the following is used?

The following data pertain to the Whalen Division of Northern Industries. The margin at Whalen was exactly the same in Year 2 as it was in Year 1. -The return on investment in Year 1 was:

The Reed Division reports the following operating data for the past two years: The return on investment at Reed was exactly the same in Year 1 and Year 2. -Average operating assets in Year 1 were:

The Baily Division recorded operating data as follows for the past two years: Baily Division's turnover was exactly the same in both Year 1 and Year 2. -Sales in Year 1 amounted to:

Which of the following is not an operating asset?

Dickonson Products is a division of a major corporation. The following data are for the last year of operations: -The division's margin is closest to:

Residual income is a better measure for performance evaluation of an investment center manager than return on investment because:

The following data pertain to the Whalen Division of Northern Industries. The margin at Whalen was exactly the same in Year 2 as it was in Year 1. -The average operating assets for Year 2 amounted to:

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

Chace Products is a division of a major corporation. Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. The company's minimum required rate of return is 12%. -The delivery cycle time was:

Chace Products is a division of a major corporation. Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. The company's minimum required rate of return is 12%. -The manufacturing cycle efficiency (MCE)was closest to:

Iles Industries is a division of a major corporation.The following data are for the latest year of operations: Required: What is the division's residual income?

The Consumer Products Division of Weiter Corporation had average operating assets of $570,000 and net operating income of $65,100 in March. The minimum required rate of return for performance evaluation purposes is 12%. -What was the Consumer Products Division's minimum required return in March?

The performance measures on a balanced scorecard tend to fall into four groups: financial measures,customer measures,internal business process measures,and external business process measures.

Which of the following will not result in an increase in the residual income,assuming other factors remain constant?

Gilde Industries is a division of a major corporation.Last year the division had total sales of $23,380,000,net operating income of $2,828,980,and average operating assets of $7,000,000.The company's minimum required rate of return is 12%. 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)?

If expenses exceed revenues in a department,then it would be considered a cost center.