1 All Of The Following Are Advantages Of Decentralization Except A To Improve Custom 2434356

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1) All of the following are advantages ofdecentralization except:

A. to improve customer relations.

B. to encourage use of expert knowledge.

C. to increase employee motivation.

D. to allow goal congruence to be achieved more easily.

2) All of the following are responsibility centersexcept:

A. profit centers.

B. investment centers.

C. customer centers.

D. cost centers.

3) The differences between actual and budgeted figuresare known as:

A. fluctuations.

B. variances.

C. overages.

D. underages.

4) Which of the following is a performance measurecommonly used to assess the performance of investmentcenters?

A. Return on investment

B. Profit margin

C. Current ratio

D. Gross income

5) Residual income is calculated as:

A. revenues less expenses.

B. contribution margin less minimum acceptable income.

C. operating income less minimum acceptable income.

D. sales less variable costs.

6) Which of the following is NOT a strategy fordetermining the transfer price of a product?

A. Related party discounted price

B. Market price

C. Cost or cost-plus a markup

D. Negotiated price

7) Employee capabilities, information systemcapabilities, and the company’s “climate for action” are importantfactors of the:

A. employee perspective.

B. customer perspective.

C. internal business perspective.

D. learning and growth perspective.

8) Assume Cucumber Company expects each division to earnan 8% target rate of return. Assume the Company’s Pickle Divisionhad the following results:

Sales                                       $24,500,000

Operatingincome                        1,250,000

Totalassets                               15,500,000

The Division’s ROI is:

A. 8.1%.

B. 15.8%.

C. 5.1%.

D. 8.0%.

9) Assume Ametrine Company expects each division to earnan 8% target rate of return. Assume the Company’s Division A hadthe following results:

Sales                            $24,500,000

Operatingincome             1,250,000

Totalassets                     15,500,000

The Division’s ROI is:

A. −$10,000.

B. $10,000.

C. −$710,000.

D. $710,000.

10) Which of the following are examples ofKPIs?

A. Average customer satisfaction ratings

B. Number of repeat customers

C. Sales revenue growth

D. All of the above are examples of KPIs

 
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