12:25 Files X Assignment 4 - Ch 5 and 6 Sign in to edit and save changes to this file. UBT UNIVERSITY OF BUSINESS AND TECHNOLOGY Examples - Ch. 5 & Ch 6 Question 1: choose the correct answer: (Ch. 5) 1. All the following are benefits of decentralization except A) Lower-level manager's objectives may not be those of the organization. B) Lower-level managers can respond quickly to customers C) Lower-level managers gain experience in decision-making D) Lower-level decisions often based on better information 2. All the following are Disadvantages of decentralization except A) Lower-level manager's objectives may not be those of the organization B) Lower-level managers can respond quickly to customers C) Lower-level managers may make decisions without seeing the "big picture." D) May be difficult to spread innovative ideas in the organization 3. Responsibility centers A) A segment whose manager has control over both costs and revenues, but no control over investment funds Mobile View B) A segment whose manager has control over costs, revenues, and investments in operating assets C) A segment whose manager has control over costs, but not over revenues or investment funds D) Cost, profit, and investment centers ... 56 4. ROI A) measures net operating income earned relative to the investment in average operating assets B) measures net operating income earned less the minimum required return on average operating assets C) It cannot be used to compare the performance of divisions of different sizes D) None of the other answers 5. Residual income means the following except A) measures net operating income earned relative to the investment in average operating assets B) measures net operating income earned less the minimum required return on average operating assets C) It cannot be used to compare the performance of divisions of different sizes D) encourages managers to make profitable investments that would be rejected by managers using ROI 6. Investment center A) A segment whose manager has control over both costs and revenues, but no control over investment funds Sign in B) A segment whose manager has control over costs, revenues, and investments in operating assets. C) A segment whose manager has control over costs, but not over revenues or investment funds D) Cost, profit, and investment centers UBT UNIVERSITY OF BUSINESS AND TECHNOLOGY AD Read Aloud Headings 1

1. Berponiblihe cethen iaterment funds D) Coes, pexit, and inveement centen. 4. Bove awe D) Nive of the obet inuern 4. Rovidual keonk means the follinwing carege aksti. ROI 6. hveniment centct irvecorren finds D) Cosk, posit, and invearnat certion eperatiog anes 520000 (i) 25%. C.5. D) Niec of the uber awien. A) 10R/2s B) 25%2.25 C) 25,100. bN Ninc af inc eder mavm case ROI will charge from ...... to A) 15km, oh. (i) 30h. 15% Ouen zin: bo None of the reter musm trit caie you abvise to A) io decrease pofin mujin C) None of the cther anowes net incume is \$1 36,000 , then the Ror in A) 20% ii) ion. Cis: bo Nime of the uder werm N) 20000 ii) 15,000 coss, 100 Do None uf the eder awem of ine sepmedi mor be : in enther sopan: A) tracealle fived conts - comman fised conts. C) variatie coals - corranin thed conds D) Nine of the ether aniwas roquired retim is A) 45000 (5) 85000 cosin to Nins of the echer A) 70,000 asd 40,000 B) 34,060 and l6,000 cisere D) Nine of the offer musen Sign in to edit and save changes to this file. Sign in UBT reveruc of eadt sepmert is A) 70.000 and 40000 B) 34,060 and 16.000 C) som D) Nune of the wher anewen A) Nen-fenciai Mosure B) Finunciul Memirn D) None of the cobor awers mcaure - nis how lond matapen, whk A) Snaksal - nop thincial B) Noe finiknal -fleancial C)boh finuncial and anb-finascid Di None of the veler mowers 25. A) finincial - noe-finincial. B) Nap-lninciat-financial D) Nose of the ober movers 27 A) Variste cosine C) Net D) Nine of the ober anwers onds shreld be squened finem A) Trectable fivad-common fixd C) variatle-fived Di Noes of the wher anrom. 19. ucymate ituelf fratapeinod. A) Tractable fived coata Ovaratic coits De Nune of the echer aniwent 30 partioule icement were climinuted. A) Traceable fived conts Bi) caratwe fised pouta Sign in to edit and save changes to this file. Sign in 30 paticule nepmat wae eliminited. A) Tnceable fred conts Bi commen fised poish 3 UBT Ovaratle chas De None of ithe ather aniwen Questiea 2: Cheese the varrest answer: (Ca b) 1. emoceman ab coet metuction. by Nanc of the whe emen 2. tunds is be applied in an ad has tueis whorm tave D. None if the reler inem 3. Dy Ninc of the uder mesos 4. A) Cout nunapment Cowe mosering Do Nose of itse eder animem C) Extimate the staul coof of the prodaci B. the target cont 6. ii) Kaiven conting-taryet crotity D) Nene of the aber ansers A) $00 (B) 400 Cono b) Nome of the nether anwer Sign in to edit and save changes to this A) 00 B) 500 Cr 600 UBT C) indernal failurs cants 10 The A) ceat manapanati! B) value chain Cixyet contive Dh None of the reder an-est