Professional Documents
Culture Documents
Sem III - Enterprise Performance Management
Sem III - Enterprise Performance Management
ID
1
Question
A company that uses a separate transfer price for each division in
a single transaction is employing
b
Full cost pricing
Market-based pricing
Negotiation
The market
Cost-based pricing
Variable-cost pricing
Profit centre
Cost centre
Subunit performance
evaluation
Goal congruence
contribution margin
10
operating income
stock prices
number of defective
units
residual income
return on sales
Return on investment
investment
working capital
11
12
13
14
Residual income
historical cost
current cost
cost centre
profit centre
Behavior
Information
To recognise the
interrelationship of
accounting systems.
To emphasise that
human factors are
crucial aspects of
budgeting.
15
16
Operating income
Stock price
17
external financial
internal non-financial
18
Choosing a performance
measure that aligns with
top managements
financial goals
19
Expenses
Profit
20
residual income
21
22
return on investment
residual income
return on sales
income
return on sales
revenues
cash
return on sales
power
control
23
24
25
26
27
investment
cost
28
When one subunit of the firm sells to another subunit of the firm,
the charge for the product between the subunits is known as the
revenue
transfer price
29
distressed
cost-based
30
full costing
negotiation
31
market-based
negotiated
32
fixed costs
market-based price
33
34
35
36
internal business
processes
37
return on capital
employed
38
39
40
variable cost
full costing
decentralisation benefit
centralisation benefit
Making organisation
planning and control
decisions
41
42
Revenue centre
Profit centre
Contribution
43
44
Target-based
Administered
45
46
Financial perspective
Customer perspective
47
business-level strategy
business model
48
business-level strategy
business model
49
business-level strategy
business model
50
Balanced scorecard
Business-level strategy
They do little to
motivate employees to
They are hard to quantify.
improve accounting
profits.
Sunk cost
Transfer cost
Choose the asset that in NOT an intangible asset from the list
below
Investments in stock of
another company
High-quality processes
revenues
56
When managers of
subunits throughout the
organization strive to
achieve goals set up by
top management
When managers of
subunits strive to
achieve goals that will
benefit their particular
subunits
57
Management by crisis
Management by
objectives
51
52
53
54
55
58
Total assets
60
61
To determine who is
responsible for
unfavorable variances
To determine who is in
the best position to
explain variances
62
can be significant.
can encourage
cost/benefit analyses
among managers.
NPV
IRR
59
63
Which of the following investment rules does not use the time
value of the money concept
The payback period rule accepts all projects for which the
64 payback period is
Which of the following capital budgeting methods has the value
65 additive property
The disadvantages of the book rate of return method is/are
66
71
salvage value
accounting income
cash flow
sunk costs
opportunity costs
Installation costs
necessary to use a
machine that was just
purchased.
72
73
74
Options
c
Answer
Negotiated pricing
Dual pricing
Variable costing
Full-cost pricing
Negotiated pricing
Revenue centre
Investment centre
Management effort
Price monopoly
product cost
net income
stock prices
return on investment
customer satisfaction
Residual income
Return on sales
sales
Return on sales
Return on investment
revenue centre
investment centre
Knowledge
Control
Defect rate
Customer satisfaction
rate
external non-financial
internal financial
Choosing a customer to
evaluate the performance
Revenues
Investment
return on sales
return on investment
return on sales
residual income
investment turnover
return on investment
revenues
investment
investment
income
return on investment
residual income
decentralisation
centralisation
profit
revenue
intermediate product
product cost
market-based
negotiated
goal congruence
profit minimisation
variable cost
full cost
incremental costs
full cost
market-based
negotiated
decentralisation cost
management drawback
Supporting political
actions
financial
Balanced Scorecards
always have four
perspectives
can be cascaded to
different levels/parts of
organisations
Organisations sometimes
Balanced scorecards
use a traffic-light system always report using the
on their balanced
same time periods as the
scorecard to help them
financial accounting
prioritise their activities.
system.
Investment centre
Cost centre
Controllable profit
Cost-based
Negotiated
Internal business
perspective
mission statement
balanced scorecard
mission statement
balanced scorecard
mission statement
balanced scorecard
Benchmarking
Internal calibration
market price.
Outlay cost
Variable cost
When managers of
subunits are directed
toward achieving goals
for their subunits
Is positive
An integer
Payback period
Discounted payback
period
There is no clear-cut
decision rule
method of project
financing used
earnings
operating profit
is only undertaken by
large corporations
applies only to
investment in fixed
assets
changes in working
capital resulting from the
project, net of
spontaneous changes in
current liabilities
effects of inflation
Post-completion audit of
investment projects.