Question 1

Ricric Corporation has provided the following data for one of its products:

-The throughput time for this operation is:

Accepted Answer

A) 8 days 
B) 3 days 
C) 17 days 
D) 7.7 days 
A) 8 days 
B) 3 days 
C) 17 days 
D) 7.7 days

Question 2

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 + Thr

Question 3

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:

Accepted Answer

A) $750,000 
B) $2,000,000 
C) $3,846,154 
D) $2,400,000 
A) $750,000 
B) $2,000,000 
C) $3,846,154 
D) $2,400,000

Question 4

The following information relates to last year's operations at the Paper Division of Germane Corporation:   What was the Paper Division's net operating income last year?

Accepted Answer

A) $24,300 
B) $29,160 
C) $145,800 
D) $162,000 
A) $24,300 
B) $29,160 
C) $145,800 
D) $162,000

Question 5

The North Division of the Lyman Company reported the following data for last year:
 
-The return on investment last year for the North Division was:

Accepted Answer

A) 18% 
B) 40% 
C) 36% 
D) 80% 
A) 18% 
B) 40% 
C) 36% 
D) 80%

Question 6

Jolin 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:

Accepted Answer

A) 11 hours 
B) 37.1 hours 
C) 2 hours 
D) 38.5 hours 
A) 11 hours 
B) 37.1 hours 
C) 2 hours 
D) 38.5 hours

Question 7

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 turnover is closest to:

Accepted Answer

A) 0.27 
B) 2.92 
C) 10.99 
D) 2.31 
A) 0.27 
B) 2.92 
C) 10.99 
D) 2.31

Question 8

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 9

Gaal Industries is a division of a major corporation. Last year the division had total sales of $26,110,000, net operating income of $1,801,590, and average operating assets of $7,000,000. The company's minimum required rate of return is 18%.
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)?

Accepted Answer

a. Margin = Net operating income ÷ Sales

Question 10

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:

Accepted Answer

A) 0.03 
B) 0.16 
C) 0.10 
D) 0.48 
A) 0.03 
B) 0.16 
C) 0.10 
D) 0.48

Question 11

In September, the Universal Solutions Division of Mcallister Corporation had average operating assets of $120,000 and net operating income of $12,800. The company uses residual income, with a minimum required rate of return of 12%, to evaluate the performance of its divisions. What was the Universal Solutions Division's residual income in September?

Accepted Answer

A) -$1,600 
B) $1,600 
C) -$1,536 
D) $1,536 
A) -$1,600 
B) $1,600 
C) -$1,536 
D) $1,536

Question 12

Iba 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?

Accepted Answer

Residual income = Net operatin

Question 13

Koogle Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 13%. In August, the Commercial Products Division had average operating assets of $530,000 and net operating income of $76,700. What was the Commercial Products Division's residual income in August?

Accepted Answer

A) -$9,971 
B) -$7,800 
C) $7,800 
D) $9,971 
A) -$9,971 
B) -$7,800 
C) $7,800 
D) $9,971

Question 14

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

Accepted Answer

A) 36.2 hours 
B) 8.1 hours 
C) 3.3 hours 
D) 32.9 hours 
A) 36.2 hours 
B) 8.1 hours 
C) 3.3 hours 
D) 32.9 hours

Question 15

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 net operating income for Year 1 was:

Accepted Answer

A) $192,000 
B) $128,000 
C) $266,667 
D) $208,000 
A) $192,000 
B) $128,000 
C) $266,667 
D) $208,000

Question 16

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 Consumer Products Division's residual income in August?

Accepted Answer

A) $3,870 
B) $6,300 
C) $(3,870) 
D) $(6,300) 
A) $3,870 
B) $6,300 
C) $(3,870) 
D) $(6,300)

Question 17

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:

Accepted Answer

A) 21.0% 
B) 26.6% 
C) 6.8% 
D) 2.5% 
A) 21.0% 
B) 26.6% 
C) 6.8% 
D) 2.5%

Question 18

Hardenburg Corporation keeps careful track of the time required to fill orders. The times required for a particular order appear below:   Required:
a. Determine the throughput time. Show your work!
b. Determine the manufacturing cycle efficiency (MCE), Show your work!
c. Determine the delivery cycle time. Show your work!

Accepted Answer

a. Throughput time
= Process time + Insp

Question 19

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 residual income in December?

Accepted Answer

A) $8,800 
B) $(19,328) 
C) $(8,800) 
D) $19,328 
A) $8,800 
B) $(19,328) 
C) $(8,800) 
D) $19,328

Question 20

Guerlane Fragrance Corporation has a perfume division, Essense, and a cologne division, Karisma. The following information relates to last year's operations at each division. The minimum required rate of return is the same for both divisions.   Required:
Compute the unknown quantities above [(a) through (g)]. SHOW YOUR COMPUTATIONS.

Accepted Answer

(a) ROI = Net operating income ÷ Average

Ricric Corporation has provided the following data for one of its products: -The throughput time for this operation is:

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 information relates to last year's operations at the Paper Division of Germane Corporation: What was the Paper Division's net operating income last year?

The North Division of the Lyman Company reported the following data for last year: -The return on investment last year for the North Division was:

Jolin 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:

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 turnover is closest to:

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?

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:

Iba 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?

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

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 net operating income for Year 1 was:

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 Consumer Products Division's residual income in August?

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:

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 residual income in December?

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

Exam 6: Performance Measurement in Decentralized Organizations