Managerial Accounting Final Exam
|Questions with Solutions
Balanced Scorecard - -an integrated set of performance measures that are
derived from and support the organization's strategy
- Common fixed cost - -a fixed cost that supports more than one business
segment, but is not traceable in whole or in part to any one of the business
segments
- Cost center - -a business segment whose manager has control over costs
but has no control over revenue or investments in operating assets
- Decentralized organization - -an organization in which decision-making
authority is not confined to a few top executives but rather is spread
throughout the organization
- Economic Value Added (EVA) - -a concept similar to residual income in
which a variety of adjustments may be made to GAAP financial statements
for performance evaluation purposes
- Investment Center - -a business segment whose manager has control over
cost, revenue, and investments in operating assets
- Margin - -net operating income divided by sales
- Net Operating Income - -Income before interest and income taxes have
been deducted
- Operating Assets - -cash, accounts receivable, inventory, plant and
equipment, and all other assets held for operating purposes
- Profit Center - -A business segment whose manager has control over cost
and revenue but has no control over investments in operating assets
- Residual income - -the net operating income that an investment center
earns above the minimum required return on its operating assets
- Responsibility center - -any business segment whose manager has control
over costs, revenues, or investments in operating assets
- Return on Investment (ROI) - -Net operating income divided by average
operating assets. It also equals margin multiplied by turnover
|Questions with Solutions
Balanced Scorecard - -an integrated set of performance measures that are
derived from and support the organization's strategy
- Common fixed cost - -a fixed cost that supports more than one business
segment, but is not traceable in whole or in part to any one of the business
segments
- Cost center - -a business segment whose manager has control over costs
but has no control over revenue or investments in operating assets
- Decentralized organization - -an organization in which decision-making
authority is not confined to a few top executives but rather is spread
throughout the organization
- Economic Value Added (EVA) - -a concept similar to residual income in
which a variety of adjustments may be made to GAAP financial statements
for performance evaluation purposes
- Investment Center - -a business segment whose manager has control over
cost, revenue, and investments in operating assets
- Margin - -net operating income divided by sales
- Net Operating Income - -Income before interest and income taxes have
been deducted
- Operating Assets - -cash, accounts receivable, inventory, plant and
equipment, and all other assets held for operating purposes
- Profit Center - -A business segment whose manager has control over cost
and revenue but has no control over investments in operating assets
- Residual income - -the net operating income that an investment center
earns above the minimum required return on its operating assets
- Responsibility center - -any business segment whose manager has control
over costs, revenues, or investments in operating assets
- Return on Investment (ROI) - -Net operating income divided by average
operating assets. It also equals margin multiplied by turnover
