Corporate Finance final

______ provides a set of quality standards that relate to environmental management

ISO 14000

____ is the set international quality-management standards, which provide guidance and tools for organizations that want to ensure quality outputs of goods and services

ISO 9000

•deviations in market size and market share are two major contributing factors to a ______ variance

Sales quantity

•benchmarks established by top management •productivity of another firm in same industry •industry standard or average •past productivity measures of the firm •these are all ______ that firms use in assessing productivity

benchmarks

under the notion of controllability, it is most appropriate for top management to evaluate the profitability of an investment center in terms of profits generated in relation to the amount of _____ invested in the unit.

capital

Utilization of expertise of top management is among the benefits of _______management in a firm.

centralized

A key criterion for including an asset in the return on investment calculation is the degree to which the business unit _______ the asset

controls

The balances scorecard critical success factors provide strong motivation in bonus compensation plans if noncontrollable factors are ________

excluded

in developing compensation plans, the management accountant works to achieve ______by making the plan simple, clear, and consistent.

fairness

an advantage of ROI and RI is that they both measure short-term financial performance of investment centers; revenues, costs, and _______

investments

rules recently established by the securities and exchange commission include a "say on pay" rule that requires ________ votes on executive pay

non binding shareholder

______ is the ratio of output units to the number of units of an input factor

operational productivity

How do you calculate productivity?

output/input

_____ is the process by which managers at all levels in the firm gain information about the performance of tasks within the firm and judge that performance against pre established criteria

performance measurement

______ is the most appropriate and comprehensive short-term financial performance indicator for an investment center that is a division of a larger business entity

residual income (RI)

The need for coordination between the production and the ______ function will impact the choice of profit, cost, or revenue centers

selling

any system of compensation may encourage ______ behavior

unethical

A dividend reinvestment plan (DRIP) tax-free ______ dividends

Cash

A 6-sigma performance level would translate to how many defects per million

0.001

risk aversion by managers should be recognized when revising compensation plans because ______ can influence a managers risk aversion

Compensation mix (salary/bonus)

_____ is the difference between the actual features of the product (or service) and the features that the consumer wants

Design failure

Objectives of management control of the manager include _______, _______, _______.

Motivation, incentive, fairness

A common characteristic among control charts, histograms, pareto diagrams, and cause-and-effect diagrams is that they are all visual representations that allow us to detect ______ problems.

Quality related

Performance evaluation in most firms is applied at many different levels from _______ down to individual production and sales employees

Top management

the conventional return on investment performance measure calculates profit and investment based upon _______ principles

US Generally Accepted Accounting Principles (GAAP)

•efforts to improve productivity should be focused only on ________ activities.

Value added