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 71

Multiple Choice

Review LaterAdd Note

Review Later

Bungert Inc.reported the following results from last year's operations: The company's minimum required rate of return is 12% and its average operating assets were $8,000,000.Last year's residual income was closest to:

A) $912,000
B) ($48,000)
C) $992,000
D) ($972,800)

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

Correct Answer

verified

Show Answer

Question 72

Short Answer

Review LaterAdd Note

Review Later

Which of the following segment performance measures will decrease if there is an increase in the interest expense for that segment?

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below: -The division's return on investment (ROI) is closest to:

Bonilla Inc. has a $700,000 investment opportunity with the following characteristics: -The margin for the investment opportunity is closest to:

Willing Inc.reported the following results from last year's operations: At the beginning of this year,the company has a $1,200,000 investment opportunity with the following characteristics: The company's minimum required rate of return is 14%. Required: 1.What was last year's residual income? 2.What is the residual income of this year's investment opportunity? 3.If the company pursues the investment opportunity and otherwise performs the same as last year,what will be the overall residual income this year? 4.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?

Largo Company recorded for the past year sales of $750,000 and average operating assets of $375,000.What is the margin that Largo Company needed to earn in order to achieve an ROI of 15%?

Criner Inc.reported the following results from last year's operations: At the beginning of this year,the company has a $1,800,000 investment opportunity with the following characteristics: Required: 1.What was last year's return on investment (ROI)? (Round to the nearest 0.1%.) 2.If the company pursues the investment opportunity and otherwise performs the same as last year,what will be the overall ROI will this year? (Round to the nearest 0.1%.)

Simkin 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:

A segment of a business responsible for both revenues and expenses would be called:

Which of the following would be an argument for using the gross cost of plant and equipment as part of operating assets in return on investment computations?

Anguiano Inc.reported the following results from last year's operations: The company's average operating assets were $5,000,000. Last year's return on investment (ROI) was closest to:

Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: -The delivery cycle time was:

Wolley Inc.reported the following results from last year's operations: At the beginning of this year,the company has a $1,200,000 investment opportunity with the following characteristics: The company's minimum required rate of return is 14%. Required: 1.What was last year's margin? (Round to the nearest 0.1%.) 2.What was last year's turnover? (Round to the nearest 0.01.) 3.What was last year's return on investment (ROI)? (Round to the nearest 0.1%.) 4.What is the margin related to this year's investment opportunity? (Round to the nearest 0.1%.) 5.What is the turnover related to this year's investment opportunity? (Round to the nearest 0.01.) 6.What is the ROI related to this year's investment opportunity? (Round to the nearest 0.1%.) 7.If the company pursues the investment opportunity and otherwise performs the same as last year,what will be the overall margin this year? (Round to the nearest 0.1%.) 8.If the company pursues the investment opportunity and otherwise performs the same as last year,what will be the overall turnover this year? (Round to the nearest 0.01.) 9.If the company pursues the investment opportunity and otherwise performs the same as last year,what will be the overall ROI will this year? (Round to the nearest 0.1%.) 10.If Westerville's chief executive officer earns a bonus only if the ROI for this year exceeds the ROI for last year,would the CEO pursue the investment opportunity? Would the owners of the company want the CEO to pursue the investment opportunity?

The Hum Division of the Ho Company reported the following data for last year: -What was the West Division's residual income in August?

The Tipton Division of Dudley Company reported the following data last year: -Tipton Division's average operating assets last year were:

Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: -The throughput time was:

Robichau Inc. reported the following results from last year's operations: At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: The company's minimum required rate of return is 20%. -The ROI for this year's investment opportunity considered alone is closest to:

Alghamdi Corporation keeps careful track of the time required to fill orders.The times required for a particular order appear below: Required: a.Determine the throughput time.Show your work! b.Determine the manufacturing cycle efficiency (MCE),Show your work! c.Determine the delivery cycle time.Show your work!

Tadman Inc.reported the following results from last year's operations: At the beginning of this year,the company has a $800,000 investment opportunity that involves sales of $2,800,000,fixed expenses of $756,000,and a contribution margin ratio of 30% of sales. 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:

Chiodini Inc.has a $900,000 investment opportunity that involves sales of $2,430,000,fixed expenses of $1,044,900,and a contribution margin ratio of 50% of sales.The ROI for this year's investment opportunity considered alone is closest to: