PLEASE DO NOT EVEN ATTEMPT TO DO THIS QUESTION IF YOU ARE NOT WILLING TO ANSWER ALL OF THE PROBLEMS. IF YOU ARE NOT WILLING TO SOMEONE ELSE WILL BE!!!

Manegerial Acct: 240

• 111What is meant by the term decentralization?

• 112What benefits result from decentralization?

• 113Distinguish between a cost center, a profit center, and an investment center.

• 114What is meant by the terms margin and turnover in ROI calculations?

• 115What is meant by residual income?

• 116In what way can the use of ROI as a performance measure for investment centers lead to bad decisions? How does the residual income approach overcome this problem?

• 117What is the difference between delivery cycle time and throughput time? What four elements make up throughput time? What elements of throughput time are value-added and what elements are nonvalue-added?

• 118What does a manufacturing cycle efficiency (MCE) of less than 1 mean? How would you interpret an MCE of 0.40?

• 119Why do the measures used in a balanced scorecard differ from company to company?

• 1110Why does the balanced scorecard include financial performance measures as well as measures of how well internal business processes are doing?