Chapter 18 & 19 Strategic Performance
Measurement questions with answers.
Performance measurement. ANS -The process by which managers at all levels in the firm gain
information about the performance of tasks within the firm and judge that performance against pre-
established criteria is:
Cost center. ANS -The least common type of SBU in a retail firm is the:
Cost shifting ANS -The replacing of controllable costs with non-controllable costs by a department is:
Management control ANS -the evaluation by upper-level managers of the performance of mid-level
managers
Operational control ANS -the evaluation of operating-level employees by mid-level managers
centralized firm ANS -reserves much of the decision-making at the top-management level
decentralized firm ANS -has chosen to delegate a significant amount of responsibility to mid-level
managers
Profit center ANS -Authority to make decisions affecting the major determinants of profit, including the
power to choose its markets and sources of supply.
Revenue center ANS -The type of strategic business unit (SBU) where the focus is on the selling
function of a specific product line or by a geographical location
Investment center ANS -include assets employed by the SBU as well as profits in the performance
evaluation
Measurement questions with answers.
Performance measurement. ANS -The process by which managers at all levels in the firm gain
information about the performance of tasks within the firm and judge that performance against pre-
established criteria is:
Cost center. ANS -The least common type of SBU in a retail firm is the:
Cost shifting ANS -The replacing of controllable costs with non-controllable costs by a department is:
Management control ANS -the evaluation by upper-level managers of the performance of mid-level
managers
Operational control ANS -the evaluation of operating-level employees by mid-level managers
centralized firm ANS -reserves much of the decision-making at the top-management level
decentralized firm ANS -has chosen to delegate a significant amount of responsibility to mid-level
managers
Profit center ANS -Authority to make decisions affecting the major determinants of profit, including the
power to choose its markets and sources of supply.
Revenue center ANS -The type of strategic business unit (SBU) where the focus is on the selling
function of a specific product line or by a geographical location
Investment center ANS -include assets employed by the SBU as well as profits in the performance
evaluation
