Question 1

Margin equals net operating income divided by sales.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) 8 days 
B) 17 days 
C) 9.3 days 
D) 7.7 days 
A) 8 days 
B) 17 days 
C) 9.3 days 
D) 7.7 days

Question 3

When used in return on investment (ROI) calculations, operating assets do not include investments in land held for future use and investments in other companies.

Accepted Answer

A) True 
 B)False

Question 4

Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below:
 
-The division's return on investment (ROI) is closest to:

Accepted Answer

A) 2.1% 
B) 29.2% 
C) 22.6% 
D) 5.8% 
A) 2.1% 
B) 29.2% 
C) 22.6% 
D) 5.8%

Question 5

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:

Accepted Answer

A) 12.4 hours 
B) 35.1 hours 
C) 38.5 hours 
D) 3.4 hours 
A) 12.4 hours 
B) 35.1 hours 
C) 38.5 hours 
D) 3.4 hours

Question 6

Move time is considered value-added time.

Accepted Answer

A) True 
 B)False

Question 7

Throughput time is the amount of time required to process raw materials into completed products.

Accepted Answer

A) True 
 B)False

Question 8

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:

Accepted Answer

A) 0.47 
B) 0.02 
C) 0.07 
D) 0.12 
A) 0.47 
B) 0.02 
C) 0.07 
D) 0.12

Question 9

Given the following data:   The residual income would be:

Accepted Answer

A) $2,800 
B) $0 
C) $6,000 
D) $8,000 
A) $2,800 
B) $0 
C) $6,000 
D) $8,000

Question 10

Operating assets include cash, accounts receivable, and inventory but not any depreciable fixed assets.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) 15% 
B) 8.33% 
C) 10% 
D) 5% 
A) 15% 
B) 8.33% 
C) 10% 
D) 5%

Question 12

The following information relates to the Quilt Division of TDS Corporation for last year:

-What was the Quilt Division's return on investment (ROI) for last year?

Accepted Answer

A) 13% 
B) 18% 
C) 40% 
D) 45% 
A) 13% 
B) 18% 
C) 40% 
D) 45%

Question 13

Handle Fabrication is a division of a major corporation. Last year the division had total sales of $36,160,000, net operating income of $2,892,800, and average operating assets of $8,000,000. The company's minimum required rate of return is 12%.
Required:
What is the division's return on investment (ROI)?

Accepted Answer

ROI = Net operating

Question 14

The Jenkins Division recorded operating data as follows for the past year:
 
-For the past year, the minimum required rate of return was:

Accepted Answer

A) 7% 
B) 8% 
C) 16% 
D) 14% 
A) 7% 
B) 8% 
C) 16% 
D) 14%

Question 15

Land held for possible plant expansion would not be included as an operating asset when computing return on investment (ROI).

Accepted Answer

A) True 
 B)False

Question 16

Managerial performance can be measured in many different ways including return on investment (ROI) and residual income. A good reason for using residual income instead of ROI is:

Accepted Answer

A) Residual income can be computed without having to measure operating assets. 
B) Managers are more likely to accept projects that are beneficial to the company. 
C) ROI does not take into account both turnover and margin. 
D) A minimum rate of return does not have to be specified when the residual income approach is used. 
A) Residual income can be computed without having to measure operating assets. 
B) Managers are more likely to accept projects that are beneficial to the company. 
C) ROI does not take into account both turnover and margin. 
D) A minimum rate of return does not have to be specified when the residual income approach is used.

Question 17

Daab Products is a division of a major corporation. The following data are for the most recent year of operations:

-The division's margin used to compute ROI is closest to:

Accepted Answer

A) 2.8% 
B) 28.8% 
C) 10.8% 
D) 26.0% 
A) 2.8% 
B) 28.8% 
C) 10.8% 
D) 26.0%

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 margin is closest to:

Accepted Answer

A) 9.1% 
B) 34.2% 
C) 26.6% 
D) 43.3% 
A) 9.1% 
B) 34.2% 
C) 26.6% 
D) 43.3%

Question 20

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

Accepted Answer

A) True 
 B)False

Margin equals net operating income divided by sales.

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

When used in return on investment (ROI) calculations, operating assets do not include investments in land held for future use and investments in other companies.

Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: -The division's return on investment (ROI) is closest to:

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:

Move time is considered value-added time.

Throughput time is the amount of time required to process raw materials into completed products.

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:

Given the following data: The residual income would be:

Operating assets include cash, accounts receivable, and inventory but not any depreciable fixed assets.

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

The following information relates to the Quilt Division of TDS Corporation for last year: -What was the Quilt Division's return on investment (ROI) for last year?

The Jenkins Division recorded operating data as follows for the past year: -For the past year, the minimum required rate of return was:

Land held for possible plant expansion would not be included as an operating asset when computing return on investment (ROI).

Managerial performance can be measured in many different ways including return on investment (ROI) and residual income. A good reason for using residual income instead of ROI is:

Daab Products is a division of a major corporation. The following data are for the most recent year of operations: -The division's margin used to compute ROI is closest to:

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

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 margin is closest to:

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

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

Margin equals net operating income divided by sales.

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

When used in return on investment (ROI) calculations, operating assets do not include investments in land held for future use and investments in other companies.

Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: -The division's return on investment (ROI) is closest to:

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:

Move time is considered value-added time.

Throughput time is the amount of time required to process raw materials into completed products.

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:

Given the following data: The residual income would be:

Operating assets include cash, accounts receivable, and inventory but not any depreciable fixed assets.

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

The following information relates to the Quilt Division of TDS Corporation for last year: -What was the Quilt Division's return on investment (ROI) for last year?

The Jenkins Division recorded operating data as follows for the past year: -For the past year, the minimum required rate of return was:

Land held for possible plant expansion would not be included as an operating asset when computing return on investment (ROI).

Managerial performance can be measured in many different ways including return on investment (ROI) and residual income. A good reason for using residual income instead of ROI is:

Daab Products is a division of a major corporation. The following data are for the most recent year of operations: -The division's margin used to compute ROI is closest to:

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

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 margin is closest to:

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

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