FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: Performance Measurement in Decentralized Organizations

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

For the past year, the minimum required rate of return was:

A) 30%
B) 12%
C) 15%
D) 6%

E) B) and C)
F) C) and D)

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

Wiswell Inc.reported the following results from last year's operations: The average operating assets were $8,000,000. At the beginning of this year, the company has a $900,000 investment opportunity that would involve sales of $2,070,000, a contribution margin ratio of 30% of sales, and fixed expenses of $538,200.The company's minimum required rate of return is 10%.If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:

A) $104,800
B) $925,600
C) ($19,800)
D) $994,800

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 43

Essay

Review LaterAdd Note

Gabbe Industries is a division of a major corporation.Last year the division had total sales of $8,910,000, net operating income of $962,280, and average operating assets of $3,000,000.The company's minimum required rate of return is 10%. 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)?

Financial measures tend to be lag indicators that report on the results of past actions.

When used in return on investment (ROI)calculations, turnover equals sales divided by average operating assets.

The manufacturing cycle efficiency (MCE) was closest to:

For the past year, the margin used in ROI calculations was:

If the balanced scorecard is correctly constructed, the performance measures should be independent of each other so that bad performance on one measure will not result in bad performance on another performance measure.

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined ROI for the entire company will be closest to:

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined turnover for the entire company will be closest to:

Hunt Company has the following production data: The manufacturing cycle efficiency (MCE) for Hunt Company is:

Leete Inc.reported the following results from last year's operations: Last year's margin was closest to:

The margin for the investment opportunity is closest to:

Worley Inc.reported the following results from last year's operations: At the beginning of this year, the company has a $1,000,000 investment opportunity with the following characteristics: The company's minimum required rate of return is 17%. Required: 1.What was last year's residual income? 2.If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall residual income this year? 3.If Westerville's CEO earns a bonus only if residual income for this year exceeds residual income for last year, would the CEO pursue the investment opportunity?

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined margin for the entire company will be closest to:

Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).

Pinkton 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:

The division's return on investment (ROI) is closest to:

For the past year, the return on investment was:

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