QUESTION 1

1. As return on investment is a short-term performance measure:

   		it is useful for comparing divisions of different sizes
   		it cannot be manipulated by managers for their own benefit
   		none of the options is true
   		there is a need to combine it with long-term measures when assessing performance.

1 points

QUESTION 2

1. A responsibility centre which is responsible for both cost inputs and revenue is known as a:

   		revenue centre.
   		cost centre.
   		investment centre.
   		profit centre.

1 points

QUESTION 3

1. In using the balanced scorecard which of the four perspectives would the measures of contribution margin per product and changes in cash flow be most likely to apply to?

   		customer
   		internal operations
   		innovation and improvement activities
   		financial

1 points

QUESTION 4

1. From the list below the best financial performance measure for a cost centre would be:

   		budgeted costs less actual costs
   		economic value added
   		residual income
   		return on investment