Managerial Acct Ch 10a
The number of rework units may be an example of measuring which perspective of the balanced scorecard?
Internal business
Using ________ may cause a manager to reject a project that may be profitable to the company as a whole.
ROI
Which of the following financial performance measures can be used to compare potential projects of different sizes?
ROI
If a company must decrease its sales price of a product while all of the company's expenses remain constant, what will happen to return on investment (ROI)?
ROI will decrease
If selling and administrative expenses decrease while other expenses remain constant, what will happen to return on investment (ROI)?
ROI will increase
What will happen to return on investment (ROI) if current assets decrease while everything else remains the same (assume the current assets decreased is part of operating current assets)?
ROI will increase over time
Return on Investment (ROI) is a very popular measure used to evaluate corporate segments because it incorporates all of the major ingredients of profitability (revenues, expenses, investment) into a single measure. Under which one of the following combinations of actions would a segment's ROI always increase?
Revenues- Increase Expenses- Decrease Investment- Decrease
learning and growth perspective
answers the question "can we continue to improve and create value?"
customer perspective
answers the question "how do we look to customers?"
internal business perspective
answers the questions "at what business processes must we excel to satisfy financial and customer objectives?"
financial perspective
answers the questions "how do we look to shareholders?" - primarily concerned with revenue
The production line at Morningstar Farms may be classified as a(n)
cost center
in a cost center managers are accountable for
costs only
The percentage of market share may be an example of measuring which perspective of the balanced scorecard?
customer
A manager can increase return on investment (ROI) by doing which of the following?
decrease operating expenses
The ________ perspective of the balanced scorecard helps managers answer the question, "How do we look to shareholders?"
financial
the balanced scorecard views the company from 4 different perspectives
financial, customer, internal business, and learning and growth
A profitable firm can increase its return on investment by
increasing sales revenue and operating expenses by the same percentage
The Fritominus−Lay, a standminus−alone division of PepsiCo may be classified as a(n)
investment center
Total hours of continuing professional education taken by employees may be an example of measuring which perspective of the balanced scorecard?
learning and growth
With ________, managers look at the size of the variances between actual results and budgeted amounts to determine which variances a manager should investigate.
management by exception
balanced scorecard
recognizes that management must consider both financial performance measures and operational performance measures when judging the performance of a company and its segments
A performance report of a ________ will only include revenues generated by the center.
revenue center
in a revenue center managers are primarily accountable for
revenues
in a profit center managers are responsible for
revenues and costs
in an investment center managers are responsible for
revenues, costs, and efficiently managing divisions assets
The performance evaluation of a profit center is typically based on its
segment margin
Which of the following is the operating income an investment center generates before subtracting common fixed costs that are allocated to the center?
segment margin
Which type of variance causes operating income to be lower than the budgeted operating income?
unfavorable variance
Management by exception would dictate that the manager investigate which of the following variances?
variances which are greater than a budget an actual dollar amount or percentage
