Question 1

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

Accepted Answer

A) 50% 
B) 75% 
C) 25% 
D) 12% 
A) 50% 
B) 75% 
C) 25% 
D) 12% C

Question 2

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% A

Question 3

The West Division of Frede Corporation had average operating assets of $700,000 and net operating income of $120,800 in December. The minimum required rate of return for performance evaluation purposes is 16%.
-What was the West Division's minimum required return in December?

Accepted Answer

A) $112,000 
B) $120,800 
C) $131,328 
D) $19,328 
A) $112,000 
B) $120,800 
C) $131,328 
D) $19,328 A

Question 4

Inspection Time is generally considered to be non-value-added time.

Accepted Answer

A) True 
 B)False

Question 5

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?

Accepted Answer

The answer of Hysong Corporation uses residual income to evaluate...

Question 6

Ebsen Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:

-The delivery cycle time was:

Accepted Answer

A) 2.9 hours 
B) 12.3 hours 
C) 30.5 hours 
D) 28.9 hours 
A) 2.9 hours 
B) 12.3 hours 
C) 30.5 hours 
D) 28.9 hours

Question 7

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?

Accepted Answer

a. ROI = Net operating income ÷ Average

Question 8

If operating income is $60,000, average operating assets are $240,000, and the minimum required rate of return is 20%, what is the residual income?

Accepted Answer

A) 40% 
B) 25% 
C) $12,000 
D) $48,000 
A) 40% 
B) 25% 
C) $12,000 
D) $48,000

Question 9

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 10

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:

Accepted Answer

A) 0.18 
B) 0.09 
C) 0.03 
D) 0.49 
A) 0.18 
B) 0.09 
C) 0.03 
D) 0.49

Question 11

All other things being the same, which of the following would increase the residual income?

Accepted Answer

A) Decrease in average operating assets. 
B) Decrease in sales. 
C) Increase in minimum required return. 
D) Decrease in net operating income. 
A) Decrease in average operating assets. 
B) Decrease in sales. 
C) Increase in minimum required return. 
D) Decrease in net operating income.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) 0.375 
B) 0.45 
C) 0.18 
D) 0.33 
A) 0.375 
B) 0.45 
C) 0.18 
D) 0.33

Question 14

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 turnover is closest to:

Accepted Answer

A) 2.19 
B) 17.24 
C) 0.15 
D) 2.51 
A) 2.19 
B) 17.24 
C) 0.15 
D) 2.51

Question 15

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?

Accepted Answer

A) 30.0% 
B) 37.5% 
C) 40.0% 
D) 60.0% 
A) 30.0% 
B) 37.5% 
C) 40.0% 
D) 60.0%

Question 16

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

Accepted Answer

A) 5% 
B) 12% 
C) 25% 
D) 60% 
A) 5% 
B) 12% 
C) 25% 
D) 60%

Question 17

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 18

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

-The residual income for the North Division last year was:

Accepted Answer

A) $130,000 
B) $126,000 
C) $90,000 
D) $70,000 
A) $130,000 
B) $126,000 
C) $90,000 
D) $70,000

Question 19

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 20

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

Accepted Answer

A) sales. 
B) turnover. 
C) margin. 
D) average operating assets. 
A) sales. 
B) turnover. 
C) margin. 
D) average operating assets.

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

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 West Division of Frede Corporation had average operating assets of $700,000 and net operating income of $120,800 in December. The minimum required rate of return for performance evaluation purposes is 16%. -What was the West Division's minimum required return in December?

Inspection Time is generally considered to be non-value-added time.

Ebsen Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: -The delivery cycle time was:

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?

If operating income is $60,000, average operating assets are $240,000, and the minimum required rate of return is 20%, what is the residual income?

Contribution income statements are used to measure the performance of:

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:

All other things being the same, which of the following would increase the residual income?

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

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

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 turnover is closest to:

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?

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

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

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

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

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

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

The Concept of Present Value

Income Taxes and the Net Present Value Method

Statement of Cash Flows

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

Financial Statement Analysis

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Exam 6: Performance Measurement in Decentralized Organizations

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

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 West Division of Frede Corporation had average operating assets of $700,000 and net operating income of $120,800 in December. The minimum required rate of return for performance evaluation purposes is 16%. -What was the West Division's minimum required return in December?

Inspection Time is generally considered to be non-value-added time.

Ebsen Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: -The delivery cycle time was:

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?

If operating income is $60,000, average operating assets are $240,000, and the minimum required rate of return is 20%, what is the residual income?

Contribution income statements are used to measure the performance of:

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:

All other things being the same, which of the following would increase the residual income?

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

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

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 turnover is closest to:

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?

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

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

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

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

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

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

The Concept of Present Value

Income Taxes and the Net Present Value Method

Statement of Cash Flows

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

Financial Statement Analysis

Filters