61) What is the EVA for Mt Pilbara? 61)

A) $831 050 B) $856 000 C) $952 500 D) $1 030 000

 

62) An example of a performance measure with a long-run time horizon is: 62)

A) return on investment B) direct materials efficiency variances

C) number of new patents developed D) All of these answers are correct.

 

63) Relative performance evaluation: 63)

A) filters out the effect of common noncontrollable factors

B) results in managers having no incentive to help one another

C) is called BENCHMARKING

 

64) The after-tax average cost of all the long-term funds used by a corporation equals: 64)

A) weighted-average cost of capital B) return on investment

C) return on equity D) economic value added

 

Answer the following questions using the information below:

The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood that

destroyed some of their accounting records. The main computer system was also severely damaged. The following

information was salvaged:

Alpha Division Beta Division Gamma Division

Sales $2 500 000 (a) $1 150 000

Net operating profit $1 500 000 $650 000 $575 000

Operating assets (b) (c) $766 667

Return on investment 0.25 0.15 (d)

Return on sales (e) 0.10 0.5

Investment turnover (f) (g) 1.5

65) What is the value of the operating assets belonging to the Alpha Division? 65)

A) $4 333 333 B) $6 000 000 C) $6 500 000 D) $7 151 800

 

24

Answer the following questions using the information below:

The top management at Groundscare Company, a manufacturer of lawn and garden equipment, is attempting to recover

from a fire that destroyed some of their accounting records. The main computer system was also severely damaged. The

following information was salvaged:

Tractor Division Tiller Division Digger Division

Sales $5 000 000 (a) $1 200 000

Net operating profit $500 000 $720 000 $300 000

Operating assets (b) (c) $1 000 000

Return on investment 0.20 0.10 (d)

Return on sales (e) 0.12 0.25

Investment turnover (f) (g) 1.2

66) What is the value of the operating assets belonging to the Tiller Division? 66)

A) $6 000 000 B) $7 500 000 C) $7 200 000 D) $5 000 000

 

Answer the following questions using the information below:

The top management at Watersport Company, a manufacturer of watersport equipment, is attempting to recover from a fire

that destroyed some of their accounting records. The main computer system was also severely damaged. The following

information was salvaged:

Jetski Division Boat Division Surfboard Division

Sales $7 500 000 (a) $1 800 000

Net operating profit $750 000 $1 080 000 $450 000

Operating assets (b) (c) $1 500 000

Return on investment 0.20 0.10 (d)

Return on sales (e) 0.12 0.25

Investment turnover (f) (g) 1.2

67) What is the Jetski Division's return on sales? 67)

A) 0.10 B) 0.20 C) 0.12 D) 0.15

 

Answer the following questions using the information below:

Kambalda Harness Racing Incorporated manufactures horse carriages. The company has two divisions: Wheels and

Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation

measures. The following information is provided for 2014:

ASSETS PROFIT

Book value Current value Book value Current value

Wheels $485 000 $550 000 $120 000 $140 000

Assembly $750 000 $1 200 000 $160 000 $172 500

The company is currently using a 12% required rate of return.

68) What are Wheels and Assembly's return on investment based on current values, respectively? 68)

A) 0.21; 0.25 B) 0.14; 0.25 C) 0.25; 0.21 D) 0.25; 0.14

69) A part of a control system that focuses on meeting expectations is known as a(n): 69)

A) diagnostic control system B) boundary system

C) belief system D) interactive control system

 

Answer the following questions using the information below:

The top management at Watersport Company, a manufacturer of watersport equipment, is attempting to recover from a fire

that destroyed some of their accounting records. The main computer system was also severely damaged. The following

information was salvaged:

Jetski Division Boat Division Surfboard Division

Sales $7 500 000 (a) $1 800 000

Net operating profit $750 000 $1 080 000 $450 000

Operating assets (b) (c) $1 500 000

Return on investment 0.20 0.10 (d)

Return on sales (e) 0.12 0.25

Investment turnover (f) (g) 1.2

70) What is the value of the operating assets belonging to the Jetski Division? 70)

A) $2 250 000 B) $1 750 000 C) $2 000 000 D) $3 750 000

 

 

Place New Order
It's Free, Fast & Safe

"Looking for a Similar Assignment? Order now and Get a Discount!