FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Performance Measurement in Decentralized Organizations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

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

A) 3.84
B) 0.11
C) 35.71
D) 3.47

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

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Cabal Products is a division of a major corporation.Last year the division had total sales of $10, 040, 000, net operating income of $582, 320, and average operating assets of $4, 000, 000.The company's minimum required rate of return is 14%. The division's turnover is closest to:

A) 2.19
B) 17.24
C) 0.15
D) 2.51

E) A) and B)
F) All of the above

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

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:

Residual income should not be used to evaluate a profit center.

Inspection Time is generally considered to be non-value-added time.

All profit centers are responsibility centers, but not all responsibility centers are profit centers.

Cabal Products is a division of a major corporation.Last year the division had total sales of $10, 040, 000, net operating income of $582, 320, and average operating assets of $4, 000, 000.The company's minimum required rate of return is 14%. The division's return on investment (ROI) is closest to:

Suppose a company evaluates divisional performance using both ROI and residual income.The company's minimum required rate of return for the purposes of residual income calculations is 12%.If a division has a residual income of $6, 000, then its ROI is greater than 12%.

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

Ebsen 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:

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:

Margin equals net operating income divided by sales.

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

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?

All other things being the same, which of the following would increase the residual income?

Last year the Uptown Division of Gorcen Enterprises had sales of $300, 000 and a net operating income of $24, 000.The average operating assets at Uptown last year amounted to $120, 000. Last year at Uptown the margin used to calculate ROI amounted to:

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 turnover for Year 1 was:

Brletich Corporation keeps careful track of the time required to fill orders.Data concerning 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:

Which of the following performance measures will decrease if the minimum required rate of return increases?