ĐỀ BÀI ĐÁP ÁN

Which of the following are examples of non-financial performance aef

indicators?

Select ALL that may apply:

a.
Return on investment (ROI)
b.
Net profit before tax
c.
Number of customer complaints
d.
Quantity of returned items in a period
e.
Number of patents filed in a period
f.
Economic value added (EVA)
g.
Residual income (RI)

General Insurance Corporation (GIC) wants to monitor the customer

perspective.

From the options below, select the appropriate criteria for GIC to measure
and monitor the customer perspective in the context of the balanced
scorecard approach.

Select ALL that may apply:

a.

Staff turnover percentage

b.

New insurance products launched in the past 6 months

c.

The percentage of customers complaining

d.

Earnings per share

e.

Percentage of sales which is repeat business

 A.increase by
$3,000

Holdings Inc. consists of two districts, A and B. The company as a whole had 40500
sales of $400,000, a contribution margin ratio of 25% and a combined segment
margin totaling $35,000. District A had sales of $90,000 during May, a
contribution margin ratio of 45%, and a segment margin of $16,000. If the net
operating income of Holdings Inc. for May is $12,000, the traceable fixed
expenses in District B must have been

Ben Company has two stores, P and Q. During April, Store P had a segment 60000
margin of $8,000 and variable expenses equal to 65% of sales. Traceable fixed
expenses for Store Q were $18,000. Ben Company as a whole had a
contribution margin ratio of 40%, a combined segment margin of $20,000, and
sales of $180,000. Given this data, the sales for store Q were

IL Ltd. is a software company that provides solutions to businesses

b.
around the world.
Innovation and
learning
The directors are aware that low standards of efficiency compared to perspective
competitors have contributed to the recent poor performance of the
company. The CEO is very keen to use the balanced scorecard
approach to setting performance targets, and has set a target of
providing at least 70 hours of training each year for all its employees.

From the options below, choose the perspective of the Balanced

Scorecard approach reflected by this target.

a.
Internal perspective
b.
Innovation and learning perspective
c.
Finance perspective
d.
Customer perspective
e.
Ethical perspective

Chan Company has two divisions, S and T. The company's overall contribution 150000
margin ratio is 30% when sales in the two divisions total $750,000. If variable
expenses are $450,000 in Division S, and if Division S's contribution margin t tra đc 150,000
ratio is 25%, then sales in Division T must be: $ t cũng ra 150

The following information relates to last year's operations at the Paper Division 29,160
of Double A Corporation: Minimum required rate of return: 15%
Return on investment (ROI): 18%
Sales: $810,000
Turnover (on operating assets): 5 times
What was the Paper Division's net operating income last year? $
Trả lời

From the options below, choose the statements which will be true 90%
when performance measurement is most effective. đugs

a.
Only aspects which can be controlled by the manager are evaluated
b.
Managers and divisions are evaluated separately
c.
Internal and external aspects are evaluated together
d.
Both long-term and short-term objectives are considered
e.
Managers and divisions are evaluated together
Division A of Aigburth Co is considering a project which will increase Yes
annual net profit after tax by $30,000 but will require average Yes
inventory levels to increase by $200,000. The current target rate of
return on investments is 13% and the imputed interest cost of capital
is 12%. Based on the ROI and/or RI criteria would the project be
accepted?

RI Answer 1

Chọn...YESN
O

ROI Answer 2

Chọn...YESN
O

Carrot Company had the following results during June: net operating income, 12500
$2,500; turnover, 4; and ROI, 20%. Carrot Company's average operating assets
were:

Which of the following statements are valid criticisms of return on eca

investment (ROI) as a performance measure?

a.
It is misleading if used to compare departments with assets of different ages
b.
The figures needed are not easily available
c.
It is misleading if used to compare departments with different levels of risk
d.
ROI performance indicators are less likely to be manipulated than non-financial
ones
e.
Its use may discourage investment in new or replacement assets
 increase by
3000

From the options below, choose the statements which will be true
when performance measurement is most effective.

a.
Internal and external aspects are evaluated together
b.
Both long-term and short-term objectives are considered
c.
Managers and divisions are evaluated together
d.
Managers and divisions are evaluated separately
e.
Only aspects which can be controlled by the manager are evaluated

A company has a net profit margin of 13% and an asset turnover of 0.8 times. 10.4%
What is the company’s return on investment? _______ % (to 1 d.p.)

MYP Inc has a target rate of return of 20% and divisional managers will receive a accept
bonus each time their ROI exceeds this figure. X division has profits of $750,000
and currently has capital employed of $3,000,000. A new, commercially-desirable
project will increase profits by $55,000 and add $150,000 to the asset value.
The divisional manager is likely to (accept/reject/impossible) to say the project.

From the options below select the measure/measures that is/are not classified
under the financial perspective in the context of the balanced scorecard.

a.
Return on investment
b.
Dividend per share
c.
Share price growth
d.
Percentage market share
e.
Economic Value Added
f.
Number of complaints
g.
Staff turnover

Carrot Company had the following results during June: net operating income, câu này ở trên
$2,500; turnover, 4; and ROI, 20%. Carrot Company's average operating assets có đáp án
were: $________

From the options below, select the ONE statement which is NOT a t chọn B
disadvantage of non-financial performance measures. t chọn D ( k
biết nữa dịch ra
thấy v )
a.
They can be hard to measure
b.
They can lack comparability due to a diverse range of measures (ko chac)
c.
Non-financial performance measures can be quantified
d.
The causation between non-financial factors and company performance may be
incorrectly interpreted

General Insurance Corporation (GIC) wants to monitor the customer abd

perspective.

From the options below, select the appropriate criteria for GIC to
measure and monitor the customer perspective in the context of the
balanced scorecard approach.

Select ALL that may apply:

a.
The percentage of customers complaining
b.
New insurance products launched in the past 6 months
c.
Staff turnover percentage
d.
Percentage of sales which is repeat business
e.
Earnings per share

From the options below, select the potential consequences of

divisional managers using Return on Investment (ROI) targets as a
performance measure.

a.

Lack of comparability

b.

Accepting investment projects that should be rejected and vice versa

c.

Lack of understanding from divisional managers

d.

Profit manipulation

e.

Lack of goal congruence

An investment centre has capital employed of $1,500,000 and made a profit
before interest of $280,000. The notional cost of capital is 12%. The investment
centre has an opportunity to invest in a new project that requires an investment
of $350,000. The project has a life of 5 years and expects cash profits of
$80,000 each year. It is assumed to charge depreciation on a straight line basis.
In the light of the above information, what would be the average ROI with and
without the investment and would the investment centre manager wish to
undertake the investment if performance is judged on the ROI of year 1?
Choose the correct option below:

a.
Option B
b.
Option A
c.
Option D
d.
Option C

Holdings Inc. consists of two districts, A and B. The company as a whole had 40500 dưới có
sales of $400,000, a contribution margin ratio of 25% and a combined segment
margin totaling $35,000. District A had sales of $90,000 during May, a
contribution margin ratio of 45%, and a segment margin of $16,000. If the net
operating income of Holdings Inc. for May is $12,000, the traceable fixed
expenses in District B must have been:

From the options below, choose the THREE potential problems

associated with the balanced scorecard approach.

a.
It only focuses on the financial aspect of the business
b.
It ignores the financial aspects of the business
c.
Difficulty in interpreting the different figures from the analysis
d.
It does not provide a single overall measure to assess performance
e.
Difficulty in deciding on what to measure for non-financial aspects

From the options below, select the factor/s that would be classified bg
under the innovation and learning perspective of the balanced
scorecard.

a.
Health and safety training days per employee
b.
Percentage of staff suggestions for improvement used by management
c.
Percentage market share
d.
New products launched compared to competitors
e.
Economic Value Added
f.
Percentage of sales which is repeat business
g.
Share price growth

HNM Ltd has set a target ROI of 14% for its divisions based on its
cost of capital. One of the divisions achieved a ROI of 8% last year. In
the current year, the company’s management expects no major
change in the division’s operations. The divisional manager suggests
that the division can save on costs of $100,000 per annum if it invests
in the update of one of the major production processes. The update
requires an investment of $800,000. In light of the above information,
select whether the below statements are TRUE or FALSE with
regards to the acceptance or rejection of the investment proposal by
the company?

The manager will reject the proposal, because the ROI (12.5%) is Answer 1
less than the target ROI of 14%.
 Chọn...TR
UEFALSE

The manager will accept the proposal, because the ROI (12.5%) is Answer 2
greater than the division’s ROI of the previous year i.e. 8%.
Chọn...TR
UEFALSE

The return of 12.5% is beneficial for the company, because it is Answer 3

greater than the previous year’s ROI of the division, therefore the
company will gain benefits from the acceptance of the proposal. Chọn...TR
UEFALSE

The return of 12.5% is detrimental to the company, therefore

rejection of the proposal will benefit the company.

Holdings Inc. consists of two districts, A and B. The company as a whole had 40500
sales of $400,000, a contribution margin ratio of 25% and a combined segment
margin totaling $35,000. District A had sales of $90,000 during May, a
contribution margin ratio of 45%, and a segment margin of $16,000. If the net
operating income of Holdings Inc. for May is $12,000, the traceable fixed
expenses in District B must have been: $