1. The balanced scorecard measures financial and nonfinancial performance of a business. The balanced scorecard measures four...
Question:
1. The balanced scorecard measures financial and nonfinancial performance of a business. The balanced scorecard measures four areas. Identify one of the following that is not included as a performance measurement.
a) Internal Process
b) Financial
c) Innovation and Learning
d) Employees
2. Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed:
a) Miscellaneous administrative expenses
b) Direct expenses
c) Indirect expenses
d) Fixed expenses
3. In an investment center, the manager has responsibility and authority for making decisions that affect:
a) Costs
b) Revenues
c) Assets
d) Costs, revenues, and assets
4. Division X of O' Blarney Company has sales of $300,000, cost of goods sold of $120,000, operating expenses of $58,000, and invested assets of $150,000.
What is the profit margin for Division X?
a) 81.3%
b) 20.2%
c) 40.7%
d) 60%
5. Mandolin Company has two divisions. Division A is interested in purchasing 10,000 units from Division B. Capacity is available for Division B to produce these units. The per unit market price is $30 per unit, with a variable cost of $17. The manager of Division A has offered to purchase the units at $15 per unit. In an effort to make this transfer price beneficial for the company as a whole, what is the range of prices that should be used during negotiations between the two divisions?
a) $15 to $30
b) $15 to $17
c) Over $30
d) $17 to $30
Accounting Information Systems
ISBN: 978-0133428537
13th edition
Authors: Marshall B. Romney, Paul J. Steinbart