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Exam 21: Flexible Budgets and Performance Analysis

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Question 21

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While measuring performance,managers must be able to distinguish between what is being measured and the actual measures used to monitor performance and compare results.

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Question 22

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The effectiveness of a performance management and evaluation system depends on how well it coordinates the goals of

A) the entire company.
B) responsibility centers.
C) managers.
D) All of these choices

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Question 23

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Kristen Roper oversees her company's largest and most profitable investment center.She has asked you,as her staff accountant,to compute the center's ROI,residual income,and EVA for the month of August 2014,using the following information (rounded to two decimal places):

When developing performance measures,management must consider a number of different issues besides what to measure and how to measure.

As the staff accountant for Investment Center 916,calculate the October 2014 ROI,using the following information: Round your answers to two decimal places.

What are some of the limitations of using ROI,residual income,and EVA to measure the performance of investment centers?

To succeed,an organization must add value for all of its stakeholders in the short term only.

The way in which the performance of a cost center is evaluated is similar to

Profit-sharing plan is a common type of incentive compensation.

Which of the following performance measures focus on short-term financial performance?

Use the following performance report for a profit center of Portia Corporation for the month ended December 31 to answer the questions below. Using the information provided for Portia Corporation,what was the actual profit center income?

The manager of Center D designs,produces,and sells products to external parties.The manager makes both long-term and short-term decisions regarding resources.What type of responsibility center is Center D?

Other things remaining constant,which of the following will improve the return on investment?

Compute the profit margin (rounded to nearest percent) for Titania Corporation's Investment center using the following information.

Compute the May 2014 EVA for an investment center with the following information:

Standard costing would most often require which type of performance evaluation?

The use of quantitative tools to gauge an organization's performance in relation to a specific goal or an expected outcome is known as

Why might stock options not be the best way to promote coordination of goals?

The concern of responsibility accounting is limited to nonmonetary information.

A report for a responsibility center includes costs and revenues that are not controlled by a manager.