Question 1

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:

Accepted Answer

A)  9.9%
B)  1.9%
C)  7.8%
D)  6.3%E) None of the above
F) B) and C)

Question 2

During the most recent month at Schwab Corporation, queue time was 7.8 days, inspection time was 0.3 day, process time was 1.3 days, wait time was 9.7 days, and move time was 0.7 day.
Required:
a.Compute the throughput time.
b.Compute the manufacturing cycle efficiency (MCE).
c.What percentage of the production time is spent in non-value-added activities?
d.Compute the delivery cycle time.

Accepted Answer

a.Throughput time
= Process time + Inspe...

Question 3

The turnover for Year 1 was:

Accepted Answer

A)  1.2
B)  1.5
C)  3.0
D)  4.0E) A) and C)
F) A) and B)

Question 4

The division's margin used to compute ROI is closest to:

Accepted Answer

A)  29.6%
B)  35.1%
C)  21.9%
D)  7.7%E) B) and C)
F) C) and D)

Question 5

Last year's margin was closest to:

Accepted Answer

A)  36.7%
B)  67.3%
C)  9.6%
D)  4.0%E) A) and B)
F) A) and C)

Question 6

Turk's return on investment for the year was:

Accepted Answer

A)  4%
B)  15%
C)  36%
D)  20%E) C) and D)
F) None of the above

Question 7

Which of the following would be considered an operating asset in return on investment computations?

Accepted Answer

A)  Land being held for plant expansion.
B)  Treasury stock.
C)  Accounts receivable.
D)  Common stock.E) None of the above
F) A) and C)

Question 8

The division's net operating income last year was:

Accepted Answer

A)  $250,000
B)  $125,000
C)  $100,000
D)  $75,000E) B) and D)
F) A) and B)

Question 9

A cost center is a responsibility center.

Accepted Answer

A) True 
 B)False

Question 10

The sales for Year 2 were:

Accepted Answer

A)  $1.200,000
B)  $3,200,000
C)  $3,000,000
D)  $3,333,333E) A) and B)
F) B) and D)

Question 11

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%?

Accepted Answer

A)  2.00%
B)  15.00%
C)  9.99%
D)  7.50%E) C) and D)
F) All of the above

Question 12

Last year's residual income was closest to:

Accepted Answer

A)  $504,000
B)  ($56,000) 
C)  $544,000
D)  ($475,200) E) All of the above
F) C) and D)

Question 13

Runyon Inc.reported the following results from last year's operations:  The company's average operating assets were $7,000,000.

Last year's turnover was closest to:

Accepted Answer

A)  0.42
B)  14.29
C)  0.07
D)  2.40E) A) and B)
F) B) and D)

Question 14

The margin for this year's investment opportunity considered alone is closest to:

Accepted Answer

A)  56.0%
B)  50.0%
C)  6.0%
D)  44.0%E) None of the above
F) All of the above

Question 15

The division's turnover is closest to:

Accepted Answer

A)  3.26
B)  0.31
C)  2.48
D)  10.42E) All of the above
F) C) and D)

Question 16

The delivery cycle time was:

Accepted Answer

A)  19.2 hours
B)  20.6 hours
C)  8.3 hours
D)  3.2 hoursE) None of the above
F) All of the above

Question 17

A manufacturing cycle efficiency (MCE)of less than one is impossible.

Accepted Answer

A) True 
 B)False

Question 18

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%.)

Accepted Answer

1.Last year's ROI = Net operating income...

Question 19

The turnover for the investment opportunity is closest to:

Accepted Answer

A)  14.29
B)  3.20
C)  0.07
D)  0.31E) A) and C)
F) None of the above

Question 20

The division's return on investment (ROI) is closest to:

Accepted Answer

A)  7.3%
B)  23.8%
C)  31.3%
D)  3.0%E) All of the above
F) C) and D)

Exam 10: Performance Measurement in Decentralized Organizations

A cost center is a responsibility center.

Correct Answer
verified

Which of the following would be considered an operating asset in return on investment computations?

Correct Answer
verified

Last year's margin was closest to:

Correct Answer
verified

The turnover for Year 1 was:

Correct Answer
verified

The division's turnover is closest to:

Correct Answer
verified

The margin for this year's investment opportunity considered alone is closest to:

Correct Answer
verified

Correct Answer
verified
a.Throughput time
= Process time + Inspe...
View Answer

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:

Correct Answer
verified

Turk's return on investment for the year was:

Correct Answer
verified

The sales for Year 2 were:

Correct Answer
verified

The delivery cycle time was:

Correct Answer
verified

Last year's residual income was closest to:

Correct Answer
verified

A manufacturing cycle efficiency (MCE)of less than one is impossible.

Correct Answer
verified

The turnover for the investment opportunity is closest to:

Correct Answer
verified

The division's return on investment (ROI) is closest to:

Correct Answer
verified

Correct Answer
verified
1.Last year's ROI = Net operating income...
View Answer

Runyon Inc.reported the following results from last year's operations: The company's average operating assets were $7,000,000. Last year's turnover was closest to:

Correct Answer
verified

The division's margin used to compute ROI is closest to:

Correct Answer
verified

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%?

Correct Answer
verified

The division's net operating income last year was:

Correct Answer
verified

Exam 10: Performance Measurement in Decentralized Organizations

A cost center is a responsibility center.

Correct AnswerverifiedShow Answer

Which of the following would be considered an operating asset in return on investment computations?

Correct AnswerverifiedShow Answer

Last year's margin was closest to:

Correct AnswerverifiedShow Answer

The turnover for Year 1 was:

Correct AnswerverifiedShow Answer

The division's turnover is closest to:

Correct AnswerverifiedShow Answer

The margin for this year's investment opportunity considered alone is closest to:

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Throughput time= Process time + Inspe...View AnswerShow Answer

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:

Correct AnswerverifiedShow Answer

Turk's return on investment for the year was:

Correct AnswerverifiedShow Answer

The sales for Year 2 were:

Correct AnswerverifiedShow Answer

The delivery cycle time was:

Correct AnswerverifiedShow Answer

Last year's residual income was closest to:

Correct AnswerverifiedShow Answer

A manufacturing cycle efficiency (MCE)of less than one is impossible.

Correct AnswerverifiedShow Answer

The turnover for the investment opportunity is closest to:

Correct AnswerverifiedShow Answer

The division's return on investment (ROI) is closest to:

Correct AnswerverifiedShow Answer

Correct Answerverified1.Last year's ROI = Net operating income...View AnswerShow Answer

Runyon Inc.reported the following results from last year's operations: The company's average operating assets were $7,000,000. Last year's turnover was closest to:

Correct AnswerverifiedShow Answer

The division's margin used to compute ROI is closest to:

Correct AnswerverifiedShow Answer

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%?

Correct AnswerverifiedShow Answer

The division's net operating income last year was:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a.Throughput time
= Process time + Inspe...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified
1.Last year's ROI = Net operating income...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified