WorksheetsMA Ch12
Total questions: 7
Worksheet time: 4mins
Name
Class
Date
1.
If sales and avg oper. assets for Y2 = Y1, yet operating income is higher, Y2 turnover (compared with Y1 turnover) will
a)
decrease.
b)
increase.
c)
stay the same.
d)
The direction of change in turnover cannot be determined by this info
2.
The key difference between residual income and EVA is that EVA
a)
uses the actual cost of capital rather than a min. required cost of capital
b)
uses the min. req. cost of capital rather than the actual % cost of capital
c)
is a ratio rather than an absolute dollar amount.
d)
cannot be negative.
3.
If ROI for a division is 15% and the company’s minimum required cost of capital is 18%, then
a)
residual income for the division is negative
b)
residual income for the division takes on a value between 0 and +1
c)
residual income cannot be computed.
d)
EVA must be negative.
4.
If Div A is operating at full capacity, the max transfer price (the ceiling of the bargaining range) is
a)
$38.00
b)
$50.00
c)
$44
d)
$47.00
5.
If Div A is operating at less than full capacity, the min transfer price (the floor of the bargaining range) is
a)
$38.00
b)
$50.00
c)
$44
d)
$47.00
6.
Which of the following is a perspective of the Balanced Scorecard?
a)
Learning and growth (infrastructure)
b)
Internal business process
c)
Customer
d)
All of these are perspectives of the Balanced Scorecard
7.
The length of time it takes to produce a unit of output from raw materials to finished goods inventory is called
a)
velocity.
b)
cycle time.
c)
manufacturing cycle efficiency.
d)
theoretical cycle time.
100 %
