ch23tif
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ch23tif

Course Number: ACCT 322, Spring 2011

College/University: Saint Louis

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CHAPTER 23: PERFORMANCE MEASUREMENT, COMPENSATION, AND MULTINATIONAL CONSIDERATIONS TRUE/FALSE 1. Many common performance measures, such as customer satisfaction, rely on internal financial accounting information. Answer: False Difficulty: 1 Objective: 1 Customer satisfaction would be obtained by surveys that are not in the financial accounting records. 2. Some companies present financial and nonfinancial...

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23: CHAPTER PERFORMANCE MEASUREMENT, COMPENSATION, AND MULTINATIONAL CONSIDERATIONS TRUE/FALSE 1. Many common performance measures, such as customer satisfaction, rely on internal financial accounting information. Register to View AnswerDifficulty: 1 Objective: 1 Customer satisfaction would be obtained by surveys that are not in the financial accounting records. 2. Some companies present financial and nonfinancial performance measures for various organization units in a single report called the " balanced scorecard." Answer: 3. True Difficulty: 1 Objective: 1 A major weakness of comparing two companies using only operating incomes as the basis of comparison is this method ignores differences in the size of the investment required to earn the operating income. Register to View AnswerDifficulty: 1 Objective: 2 4. Return on investment is also called the accrual accounting rate of return. Register to View AnswerDifficulty: 1 Objective: 3 5. Investment turnover is calculated by dividing investments by revenues. Register to View AnswerDifficulty: 1 Objective: Investment turnover is calculated by dividing revenues by investments. 3 6. The three alternatives for increasing return on investment include increasing assets such as receivables, increasing revenues, and decreasing costs. (In all cases assume that all other items stay the same.) Register to View AnswerDifficulty: 2 Objective: Increasing receivables does not increase return on investment. 3 7. Imputed costs are costs recognized in particular situations that are not usually recognized by accrual accounting procedures. Register to View AnswerDifficulty: 2 Objective: 4 Chapter 23 Page 1 8. The objective of maximizing return on investment may induce managers of highly profitable divisions to reject projects that from the viewpoint of the overall organization should be accepted. Register to View AnswerDifficulty: 2 Objective: 4 9. Goal congruence is more likely to be promoted by using return on investment rather than residual income as a measure of a subunit's managerial performance. Register to View AnswerDifficulty: 2 Objective: 4 Goal congruence is more likely to be promoted by using residual income rather than return on investment. 10. Economic value added, unlike residual income, charges managers for the costs of their investments in long-term assets and working capital. Register to View AnswerDifficulty: 2 Objective: 5 Both economic value added and residual income charge managers for the costs of their investments in long-term capital. 11. To evaluate overall aggregate performance, return on investment and residual income measures are more appropriate than return on sales. Register to View AnswerDifficulty: 2 Objective: 5 Return on investment and residual income are better measures of overall aggregate performance because they both consider income earned and investments made. 12. Companies that adopt economic value added define investment as total assets employed minus current liabilities. Register to View AnswerDifficulty: 2 Objective: 5 13. Current cost return on investment is a better measure of the current economic returns from an investment than historical cost return on investment. Register to View AnswerDifficulty: 2 Objective: 6 14. Comparing the performance of divisions of a multinational company operating in different countries is difficult due to the differences in economic, legal, political, social, and cultural environments. Register to View AnswerDifficulty: 1 Objective: 7 15. One way to achieve greater comparability of historical cost-based ROIs for a company's foreign division is to restate performance in dollars. Register to View AnswerDifficulty: 2 Objective: 7 Chapter 23 Page 2 16. An important consideration in designing compensation arrangements is the tradeoff between creating incentives and imposing risks. Register to View AnswerDifficulty: 1 Objective: 8 17. Moral hazard describes contexts in which an employee prefers to exert less effort than the effort that the owner wants because the employee's effort cannot be accurately monitored and enforced. Register to View AnswerDifficulty: 1 Objective: 8 18. Another term for benchmarking is a relative performance evaluation. Register to View AnswerDifficulty: 1 Objective: 9 19. Evaluating an executive's performance using the annual return on investment would sharpen an executive's long-run focus. Register to View AnswerDifficulty: 2 Using return on investment is a short-run tool. Objective: 9 20. Examples of "cooking the books" are understated assets and overstated liabilities. Register to View AnswerDifficulty: 1 Objective: Cooking the books is overstating assets and understating liabilities. 9 Chapter 23 Page 3 MULTIPLE CHOICE 21. A report that measures financial and nonfinancial performance measures for various organization units in a single report is called a(n) a. balanced scorecard. b. financial report scorecard. c. imbalanced scorecard. d. unbalanced scorecard. Answer: 22. a Difficulty: 1 Objective: 1 Customer-satisfaction measures are an example of a. goal-congruence approach. b. balanced scorecard approach. c. financial report scorecard approach. d. investment success approach. Register to View AnswerDifficulty: 1 Objective: 1 23. An example of a performance measure with a long-run time horizon a. is direct materials efficiency variances. b. is overhead spending variances. c. is number of new patents developed. d. include all of the above measures. Register to View AnswerDifficulty: 2 Objective: 1 24. Does operating income best measure a subunit's financial performance? This question is considered part of which step in designing an accounting-based performance measure? a. Choose performance measures that align with top management's financial goals. b. Choose the time horizon of each performance measure. c. Choose a definition for each performance measure. d. Choose a measurement alternative for each performance measure. Register to View AnswerDifficulty: 2 Objective: 2 25. Should assets be defined as total assets or net assets? This question is considered part of which step in designing an accounting-based performance measure? a. Choose performance measures that align with top management's financial goals. b. Choose the time horizon of each performance measure. c. Choose a definition for each performance measure. d. Choose a measurement alternative for each performance measure. Register to View AnswerDifficulty: 2 Objective: 2 Chapter 23 Page 4 26. Should assets be measured at historical cost or current cost? This question is considered part of which step in designing an accounting-based performance measure? a. Choose performance measures that align with top management's financial goals b. Choose the time horizon of each performance measure c. Choose a definition for each performance measure d. Choose a measurement alternative for each performance measure Register to View AnswerDifficulty: 2 Objective: 2 27. Which of the following statements about designing an accounting-based performance measure is FALSE? a. The steps may be followed in a random order. b. The issues considered in each step are independent. c. Management's beliefs are present during the analyses. d. Behavioral criteria are important when evaluating the steps. Register to View AnswerDifficulty: 2 Objective: 2 28. Managers usually use the term return on investment to evaluate a. the performance of a subdivision. b. a potential project. c. the performance of a subunit. d. both (a) and (c). Register to View AnswerDifficulty: 2 Objective: 3 29. The return on investment is usually considered the most popular approach to incorporating the investment base into a performance measure because a. it blends all the ingredients of profitability into a single percentage. b. once determined, there is no need to use it with other measures of performance. c. it is similar to the company's price earnings ratio in that a corporation's return on investment appears every day in The Wall Street Journal. d. of both (a) and (c). Register to View AnswerDifficulty: 2 Objective: 3 30. Return on investment can be increased by a. increasing operating assets. b. decreasing operating assets. c. decreasing revenues. d. both (b) and (c). Register to View AnswerDifficulty: 2 Objective: 3 Chapter 23 Page 5 31. During the past twelve months, the Aaron Corporation had a net income of $50,000. What is the amount of the investment if the return on investment is 20%? a. $100,000 b. $200,000 c. $250,000 d. $500,000 Register to View AnswerDifficulty: 0.20 = $50,000/x; x = $250,000 2 Objective: 3 32. During the past twelve months, the Zenith Corporation had a net income of $39,200. What is the return on investment if the amount of the investment is $280,000? a. 10% b. 12% c. 14% d. 16% Register to View Answer$39,200/$280,000 = 14% Difficulty: 1 Objective: 3 33. The Alpha Beta Corporation had the following information for 20x3: Revenue $ 900,000 Operating expenses 670,000 Total assets 1,150,000 What is the return on investment? a. 10% b. 20% c. 25% d. 78.2% Register to View Answer$230,000/$1,150,000 = 20% Difficulty: 2 Objective: 3 34. Wacker Company has two regional offices. The data for each is as follows: Maryland New York Revenues $ 580,000 $ 596,000 Operating assets 4,800,000 9,000,000 Net operating income 2,016,000 2,400,000 What is the Maryland Division's return on investment? a. 0.42 b. 0.54. c. 0.96. d. 4.12. Register to View Answer$2,016/$4,800 = 0.42% Difficulty: 1 Objective: 3 Chapter 23 Page 6 35. Thacker Company has two regional offices. The data for each is as follows: Maryland New York Revenues $ 580,000 $ 596,000 Operating assets 4,800,000 9,000,000 Net operating income 2,016,000 4,860,000 a. b. c. d. What is the return on investment for the New York Division? 0.42. 0.54 0.96 4.12 Difficulty: 1 Objective: 3 Register to View Answer$4,860/$9,0000= 54% THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 36 THROUGH 38. The Cybertronics Corporation reported the following information for its Cyclotron Division: Revenues Operating costs Taxable income Operating assets $1,000,000 600,000 200,000 500,000 Income is defined as operating income. 36. What is the Cyclotron Division's investment turnover ratio? a. 2.00 b. 3.33 c. 2.50 d. 0.80 Register to View Answer$1,000,000/$500,000 = 2 37. Difficulty: 2 Objective: 3 What is the Cyclotron Division's return on sales? a. 0.2 b. 0.4 c. 0.5 d. 0.6 Register to View AnswerDifficulty: 2 Objective: $1,000,000 - $600,000 = $400,000; $400,000/$1,000,000 = 0.40 3 38. What is the Cyclotron Division's return on investment? a. 0.2 b. 0.4 c. 0.5 d. 0.8 Register to View Answer$400,000 / $500,000 = 0.8 Difficulty: 2 Objective: 3 Chapter 23 Page 7 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 39 THROUGH 43. The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged: Sales Net operating income Operating assets Return on investment Return on sales Investment turnover 39. Alpha Division $2,500,000 $1,500,000 (b) 0.25 (e) (f) Beta Division (a) $650,000 (c) 0.15 0.10 (g) Gamma Division $1,150,000 $ 575,000 $ 766,667 (d) 0.5 1.5 What were the sales for the Beta Division? a. $4,333,333 b. $5,952,380 c. $6,500,000 d. $7,151,800 Register to View AnswerDifficulty: 0.10 = $650,000/x; x = $6,500,000 2 Objective: 3 40. What is the value of the operating assets belonging to the Alpha Division? a. $4,333,333 b. $6,000,000 c. $6,500,000 d. $7,151,800 Register to View AnswerDifficulty: $1,500,000/0.25 = $6,000,000 2 Objective: 3 41. What is the value of the operating assets belonging to the Beta Division? a. $4,333,333 b. $5,952,380 c. $6,500,000 d. $7,151,800 Register to View AnswerDifficulty: 1.5 = $6,500,000/x; x = $4,333,333 2 Objective: 3 Chapter 23 Page 8 42. What is the Gamma Division's return on investment? a. 0.25 b. 0.42 c. 0.60 d. 0.75 Register to View Answer0.5 x 1.5 = 0.75 Difficulty: 2 Objective: 3 43. What is the Alpha Division's return on sales? a. 0.25 b. 0.42 c. 0.60 d. 0.75 Register to View AnswerDifficulty: $1,500,000/$2,500,000 = 0.60 2 Objective: 3 44. Costs recognized in particular situations that are not recognized by accrual accounting procedures are a. opportunity costs. b. imputed costs. c. cash accounting costs. d. none of the above. Register to View AnswerDifficulty: 1 Objective: 4 45. A problem with utilizing residual income is that a. a corporation with a high investment turnover ratio always has a higher residual income than a corporation with a smaller investment turnover ratio. b. a corporation with a high return on sales always has a higher residual income than a corporation with a smaller return on sales. c. A corporation with a larger dollar amount of assets is likely to have a higher residual income than a corporation with a smaller dollar amount of assets. d. none of the above are correct. Register to View AnswerDifficulty: 2 Objective: 4 46. A company which favors the residual income approach a. wants managers to concentrate on maximizing an absolute amount of dollars. b. wants managers to concentrate on maximizing a percentage return. c. wants managers to maximize the investment turnover ratio. d. wants managers to maximize return on sales. Register to View AnswerDifficulty: 2 Objective: 4 Chapter 23 Page 9 47. Using residual income as a measure of performance rather than return on investment promotes goal congruence because a. residual income places importance on the reduction of underperforming assets. b. residual income calculates a percentage return rather than an absolute return. c. residual income concentrates on maximizing an absolute amount of dollars. d. residual income concentrates on maximizing the return on sales. Register to View AnswerDifficulty: 2 Objective: 4 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 48 THROUGH 50. The Bandage Medical Supply Company has two divisions that operate independently of one another. The financial data for the year 20x3 reported the following results: Sales Operating income Taxable income Investment North $3,000,000 750,000 650,000 6,000,000 South $2,500,000 550,000 375,000 5,000,000 The company's desired rate of return is 10%. Income is defined as operating income. 48. What are the respective return-on-investment ratios for the North and South Divisions? a. 0.110 and 0.125 b. 0.108 and 0.075 c. 0.125 and 0.110 d. 0.050 and 0.150 Register to View AnswerDifficulty: North = $750,000/$6,000,000 = 12.5% South = $550,000/$5,000,000 = 11.0% 49. 2 Objective: 3 What are the respective residual incomes for the North and South Divisions? a. $30,000 and $50,000 b. $150,000 and $30,000 c. $150,000 and $50,000 d. $50,000 and a negative $150,000 Register to View AnswerDifficulty: 2 North = $750,000 - (0.1) $6,000,000 = $150,000 South = $550,000- (0.1) $5,000,000 = $50,000 Objective: 4 50. Which division has the best return on investment and which division has the best residual income figure, respectively? a. North, North b. South, South c. North, South d. South, North Register to View AnswerDifficulty: 2 Objective: 4 Chapter 23 Page 10 51. After-tax operating income minus the after-tax weighted-average cost of capital multiplied by total assets minus current liabilities equals a. return on investment. b. residual income. c. economic value added. d. weighted-average cost of capital. Register to View AnswerDifficulty: 1 Objective: 5 52. The after-tax average cost of all the long-term funds used by a corporation equals a. economic value added. b. return on investment. c. return on equity. d. weighted-average cost of capital. Register to View AnswerDifficulty: 1 Objective: 5 53. A negative feature of defining investment by excluding the portion of total assets employed that are financed by short-term creditors is a. current liabilities are sometimes difficult to define. b. short-term debt is always more expensive to finance than long-term debt. c. this method encourages managers to use an excessive amount of short-term debt. d. this method encourages managers to use an excessive amount of long-term debt. Register to View AnswerDifficulty: 2 Objective: 5 Chapter 23 Page 11 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 54 THROUGH 56. Waldorf Company has two sources of funds: long-term debt with a market and book value of $10 million issued at an interest rate of 12%, and equity capital that has a market value of $8 million (book value of $4 million). Waldorf Company has profit centers in the following locations with the following operating incomes, total assets, and total liabilities. The cost of equity capital is 12%, while the tax rate is 25%. Operating Income $ 960,000 $1,200,000 $2,040,000 Assets $ 4,000,000 $ 8,000,000 $12,000,000 Current Liabilities $ 200,000 $ 600,000 $1,200,000 St. Louis Cedar Rapids Wichita 54. What is the EVA for St. Louis? a. $255,740 b. $327,460 c. $392,540 d. $720,000 Register to View AnswerDifficulty: 3 Objective: 5 WACC = [(0.09 x $10,000,000) + (0.12 x $8,000,000)]/$18,000,000 = 0.1033 St. Louis (EVA) = ($960,000 x 0.75) [0.1033 x (4,000,000 - $200,000)] = $720,000 - $392,540= $327,460 55. What is the EVA for Cedar Rapids? a. $135,580 b. $220,000 c. $234,000 d. $305,000 Register to View AnswerDifficulty: 3 Objective: 5 Cedar Rapids (EVA) = ($1,200,000 x 0.75) - [0.1033 x ($8,000,000 - $600,000)] = $900,000 - $764,420= $135,580 56. What is the EVA for Wichita? a. $450,000 b. $1,530,000 c. $414,360 d. $1,115,640 Register to View AnswerDifficulty: 3 Objective: 5 Wichita (EVA) = ($2,040,000 x.75) [(0.1033 x ($12,000,000 - 1,200,000)] = $1,530,000 - $1,115,640= $414,360 Chapter 23 Page 12 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 57 THROUGH 59. Ruth Cleaning Products manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 20x3: ASSETS Book value Current value $225,000 $300,000 $450,000 $250,000 INCOME Book value Current value $150,000 $155,000 $100,000 $105,000 Bleach Cleanser The company is currently using a 15% required rate of return. 57. What are Bleach's and Cleanser's return on investment based on book values, respectively? a. 0.22; 0.67 b. 0.42; 0.52 c. 0.52; 0.42 d. 0.67; 0.22 Register to View AnswerDifficulty: 2 Book value ROI: Bleach: $150,000/$225,000 = 0.67 Cleanser: $100,000/$450,000 = 0.22 58. Objective: 6 What are Bleach's and Cleanser's return on investment based on current values, respectively? a. 0.22; 0.67 b. 0.42; 0.52 c. 0.52; 0.42 d. 0.67; 0.22 Register to View AnswerDifficulty: 2 Current ROI: Bleach: $155,000 / $300,000 = 0.52 Cleanser: $105,000 / $250,000 = 0.42 Objective: 6 59. What are Bleach's and Cleanser's residual incomes based on book values, respectively? a. $116,250; $32,500 b. $110,000; $67,500 c. $67,500; $110,000 d. $37,500; $116,250 Register to View AnswerDifficulty: 2 Book value RI: Bleach: $150,000 - ($225,000 x 0.15) = $116,250 Cleanser: $100,000 - ($450,000 x 0.15) = $32,500 Objective: 6 Chapter 23 Page 13 60. The cost today of purchasing an asset identical to the one currently held is called a. an actual cost. b. a current cost. c. a dual cost. d. a fixed cost. Register to View AnswerDifficulty: 2 Objective: 6 61. If a company is a multinational company with operations in several different countries, one way to achieve comparability of historical-cost based ROIs for facilities in different countries is a. restate the results of operations using the cash basis method of accounting. b. use GAAP for all reporting and calculations. c. restate the results of all operations in dollars. d. all of the above would achieve comparability. Register to View AnswerDifficulty: 2 Objective: 7 62. Which of the following statements is true? a. The economic, legal, political, social, and cultural environments differ across countries. b. Governments in some countries may impose controls and limit selling prices of a company's products. c. Because of advances in telecommunications and transportation, the availability of materials and skilled labor does not differ significantly across countries. d. Both (a) and (b) are correct. Register to View AnswerDifficulty: 2 Objective: 7 63. In performance evaluations a. the performance of the division prior to the manager assuming control should be considered. b. economic conditions for the specific industry should not be considered. c. to have an effective and fair evaluation, a manager should be evaluated over several time periods. d. both (a) and (c) are correct. Register to View AnswerDifficulty: 2 Objective: 8 64. A problem with rewarding managers only on the basis of residual income a. is that residual income is difficult measure. to b. is that on occasion the items in the residual income calculation are not quantifiable. c. is that residual income can depend on items over which the manager has little control. d. include all of the above. Register to View AnswerDifficulty: Chapter 23 2 Objective: 8 Page 14 65. _________ describes contexts in which an employee prefers to exert less effort than the effort that the owner wants because the employee's effort cannot be accurately monitored and enforced. a. Goal congruence b. Moral hazard c. Management compensation d. Incentive compensation Register to View AnswerDifficulty: 1 Objective: 8 66. Tying performance measures more closely to a manager's efforts a. encourages the use of nonfinancial measures. b. results in a strict use of financial ratios. c. results in the salary component of compensation dominating the total compensation package. d. includes both (a) and (c). Register to View AnswerDifficulty: 2 Objective: 9 67. Relative performance evaluation a. is called benchmarking. b. filters out the effect of common noncontrollable factors. c. results in managers having no incentive to help one another. d. include all of the above. Register to View AnswerDifficulty: 2 Objective: 9 68. Team incentives encourage cooperation by a. forcing people to work together on difficult tasks. b. improving morale. c. letting individuals help one another as they strive toward a common goal. d. rewarding all teams the same amount. Register to View AnswerDifficulty: 1 Objective: 9 69. Many manufacturing, marketing, and design problems require employees with multiple skills; therefore, teams are used and the members have the added encouragement of a. individual incentives. b. management incentives. c. morale incentives. d. team incentives. Register to View AnswerDifficulty: 1 Objective: 9 70. Designers of executive compensation plans emphasize which of the following factors? a. Achievement of organizational goals b. Administrative ease c. The probability that the executives affected by the plan will perceive the plan as fair d. All of the above are emphasized. Register to View AnswerDifficulty: Chapter 23 2 Objective: 9 Page 15 EXERCISES AND PROBLEMS 71. Assume you are evaluating a manufacturing company. Match the various organizational activities and concepts with the performance measures listed. Some items may have more than one match. Activities: 1. Change in revenues 2. Cycle time 3. Economic order quantity 4. Manufacturing defects 5. Market share 6. New products 7. On-time delivery 8. Operating income 9. Product reliability 10. Time-to-market Performance measure: _______________ _______________ _______________ _______________ Answer: 1, 8____________ 5, 7, 9__________ 6, 10___________ 2, 3, 4, 7, 9, 10___ Difficulty: 2 a. b. c. d. Profitability Customer satisfaction Innovation Efficiency, quality, and time Objective: 1 a. b. c. d. Profitability Customer satisfaction Innovation Efficiency, quality, and time Chapter 23 Page 16 72. Designing an accounting based performance measure requires six steps. List each step. For three of the steps, describe a question that must be resolved as part of the implementation process. Answer: 1. Choose performance measures that align with top management's goals. Does operating income, return on assets, or revenues best measure a subunit's financial goals? 2. Choose the time horizon of each performance measure. Should the performance measures be calculated for one year or a multi-year time horizon? 3. Choose a definition for each performance measure. Should assets be defined as total assets or net assets? 4. Choose a measurement alternative for each performance measure. Should assets be measured at historical cost or current cost? 5. Choose a target level of performance. Should all subunits have the same targets such as the same required rate of return on assets? 6. Choose the timing of the feedback. How often should manufacturing performance reports be sent to management? Difficulty: 2 Objective: 2 73. Museum Corporation uses the investment center concept for the museums that it manages. Select operating data for three of its museums for 20x3 are as follows: Revenue Operating assets Net operating income St. Louis $600,000 300,000 51,000 Dallas $750,000 250,000 56,000 Miami $900,000 350,000 59,000 Required: a. Compute the return on investment for each division. b. Which museum manager is doing best based only on ROI? Why? c. What other factors should be included when evaluating the managers? Register to View AnswerSt. Louis = $51,000/$300,000 = 0.170 Dallas = $56,000/$250,000 = 0.224 Miami = $59,000/$350,000 = 0.169 b. c. Dallas was doing the best because the ROI was the highest, and compared to Miami, was doing better with fewer assets. At a minimum, the company should consider examining the DuPont method, residual income, and the age of operating assets. 2 Objective: 3 Difficulty: Chapter 23 Page 17 74. Kase Tractor Company allows its divisions to operate as autonomous units. The operating data for 20x3 follow: Revenues Accounts receivable Operating assets Net operating income Taxable income Required: a. b. c. d. e. Compute the investment turnover for each division. Compute the return on sales for each division Compute the return on investment for each division. Which division manager is doing best? Why? What other factors should be included when evaluating the managers? Plows $2,250,000 800,000 1,000,000 220,000 165,000 Tractors $500,000 152,500 400,000 60,000 90,000 Combines $4,800,000 1,435,000 1,750,000 480,000 385,000 For parts (b) and (c) income is defined as operating income. Register to View AnswerInvestment turnover: Plows = $2,250,000/$1,000,000 Tractors = $500,000/$400,000 Combines = $4,800,000/$1,750,000 Return on Sales: Plows = $220,000/$2,250,000 Tractors = $60,000/$500,000 Combines = $480,000/$4,800,000 ROI: Plows Tractors Combines d. e. = 2.25 x 0.10 = 1.25 x 0.12 = 2.74 x 0.10 = 0.225 = 0.150 = 0.274 = 2.25 = 1.25 = 2.74 = 0.10 = 0.12 = 0.10 b. c. Combines' manager had the best performance because he had the highest investment turnover, which offset his second-best return on sales. Residual income should be considered and noncontrollable factors such as the age of the assets. 2 Objective: 3 Difficulty: Chapter 23 Page 18 75. Provide the missing data for the following situations: Sales Net operating income Operating assets Return on investment Return on sales Investment turnover Answer: Red Division: ROI = ROS x IT 0.16 = 0.04 x IT IT = 4.0 ROS = Income/Sales 0.04 = $200,000/Sales Sales = $5,000,000 IT 4 OA = Sales/OA = $5,000,000/OA = $1,250,000 = 0.04 = 2.5 = $4,000,000 = $2,400,000 Red Division $? $200,000 $? 0.16 0.04 ? White Division $10,000,000 $400,000 $? 0.10 ? ? Blue Division $? $288,000 $1,600,000 ? 0.12 1.5 White Division: ROS = $400,000/$10,000,000 IT OA = ROI/ROS = S/IT = 0.10/0.04 = $10,000,000/2.5 = 1.5 x $1,600,000 = 0.18 Objective: 3 Blue Division: Sales = IT x OA ROI Difficulty: = 0.12 x 1.5 3 Chapter 23 Page 19 76. Hargrave Products has three divisions, which operate autonomously. Their results for 20x3 were as follows: Sales Cost of goods sold Operating income Investment base East $30,000,000 15,000,000 4,500,000 30,000,000 West $40,000,000 25,000,000 4,750,000 30,500,000 International $50,000,000 37,000,000 5,000,000 31,000,000 The company's desired rate of return is 15%. Required: a. b. Compute each division's ROI. Round to three decimal places. Compute each division's residual income. Register to View AnswerEast ROI = $4,500,000/$30,000,000 = 0.150 West ROI = $4,750,000/$30,500,000 = 0.156 International = $5,000,000/$31,000,000 = 0.161 East $30,000,000 x 0.15 $ 4,500,000 $4,500,000 4,500,000 $ 0 Objectives: 3, 4 West $30,500,000 x 0.15 $ 4,575,000 $4,750,000 4,575,000 $ 175,000 International $31,000,000 x 0.15 $ 4,650,000 $5,000,000 4,650,000 $ 350,000 b. Investment base Minimum rate Minimum return Operating Income Minimum return Residual income Difficulty: 2 Chapter 23 Page 20 77. Batman Abstract Company has three divisions that operate autonomously. Their results for 20x3 are as follows: Sales Contribution margin Operating income Investment base Riddler $5,000,000 1,440,000 1,000,000 9,000,000 Joker $7,000,000 1,700,000 1,750,000 10,000,000 Penguin $10,000,000 3,500,000 2,520,000 14,000,000 The company's desired rate of return is 20%. Required: a. Compute each division's ROI. b. Compute each division's residual income. c. Rank each division by both ROI and residual income. d. Which division had the best performance in 20x3? Why? Register to View AnswerRiddler ROI Joker ROI Penguin ROI = $1,000,000/$9,000,000 = $1,750,000/$10,000,000 = $2,520,000/$14,000,000 Riddler $9,000,000 x 0.20 $1,800,000 $1,000,000 1,800,000 $(800,000) = 0.111 = 0.175 = 0.180 Joker $10,000,000 x 0.20 $2,000,000 $1,750,000 2,000,000 $ (250,000) Penguin $14,000,000 x 0.20 $2,800,000 $2,520,000 2,800,000 $(280,000) b. Investment base Minimum rate Minimum return Income Minimum return Residual income c. ROI Rank: Penguin # 1 Joker # 2 Riddler # 3 RI Rank: Joker #1 Penguin #2 Riddler #3 Chapter 23 Page 21 77. (continued) d. As to which division was the best, it is difficult to determine without knowing what the results are being used to evaluate. If management is measuring only the return of capital, the Penguin Division has the highest ranking, although not much ahead of Joker. However, Penguin does have a substantially higher income level. As to meeting management's expectations of residual income, all divisions fall short of the goal with Joker being slightly ahead of Penguin. 3 Objectives: 3, 4 Difficulty: 78. The Coffee Division of American Products is planning the 20x3 operating budget. Average operating assets of $1,500,000 will be used during the year and unit selling prices are expected to average $100 each. Variable costs of the division are budgeted at $400,000, while fixed costs are set at $250,000. The company's required rate of return is 18%. Required: a. Compute the sales volume necessary to achieve a 20% ROI. b. The division manager receives a bonus of 50% of residual income. What is his anticipated bonus for 20x3, assuming he achieves the 20% ROI from part (a)? Register to View AnswerTarget operating income = 0.20 x $1,500,000 = $300,000 Operating income Variable costs Fixed costs Target revenues Sales volume = $950,000/$100 = 9,500 units b. Asset base Minimum rate Required return Target operating income Required return Residual income Bonus = $30,000 x 0.50 = $15,000 Difficulty: 3 Objectives: 3, 8, 9 $1,500,000 x 0.18 $ 270,000 $ 300,000 270,000 $ 30,000 $300,000 400,000 250,000 $950,000 Chapter 23 Page 22 79. LaserLife Printer Cartridge Company is a decentralized organization with several autonomous divisions. The division managers are evaluated, in part, on the basis of the change in their return on invested assets. Operating results for the Packer Division for 20x3 are budgeted as follows: Sales Less variable costs Contribution margin Less fixed expenses Net operating income $5,000,000 2,500,000 2,500,000 1,800,000 $ 700,000 Operating assets for the division are currently $3,600,000. For 20x3, the division can add a new product line for an investment of $600,000. The new product line will generate sales of $1,600,000 and will incur fixed expenses of $600,000 annually. Variable costs of the new product will average 60% of the selling price. Required: a. What is the effect on ROI of accepting the new product line? b. If the company's required rate of return is 6% and residual income is used to evaluate managers, would this encourage the division to accept the new product line? Explain and show computations. Register to View AnswerNew investment: Sales Variable costs Fixed costs Operating income $1,600,000 $960,000 600,000 1,560,000 $ 40,000 Current ROI = $700,000/$3,600,000 = 0.194 New investment ROI = $40,000/$600,000 = 0.067 Combined ROI = $740,000/$4,200,000 = 0.176 Accepting the new product line will reduce the division's ROI. This would make the manager reluctant to make the investment. b. Investment Minimum return Required amount Income Required amount Residual income $600,000 x 0.06 $ 36,000 $ 40,000 36,000 $ 4,000 Manager would accept the investment because income is increased by $4,000. Difficulty: 2 Objectives: 3, 4, 8, 9 Chapter 23 Page 23 80. Capital Investments has three divisions. Each division's required rate of return is 15%. Planned operating results for 20x3 are as follows: Division A B C Operating income $15,000,000 $25,000,000 $11,000,000 Investment $100,000,000 $125,000,000 $ 50,000,000 The company is planning an expansion, which is requiring each division to increase its investments by $25,000,000 and its income by $4,500,000. Required: a. b. c. d. e. Compute the current ROI for each division. Compute the current residual income for each division. Rank the divisions according to their current ROIs and residual incomes. Determine the effects after adding the new project to each division's ROI and residual income. Assuming the managers are evaluated on either ROI or residual income, which divisions are pleased with the expansion and which ones are unhappy? Register to View AnswerA ROI B ROI C ROI A RI B RI C RI = $15,000,000/$100,000,000 = $25,000,000/$125,000,000 = $11,000,000/$50,000,000 = $15,000,000 - ($100,000,000 x 0.15) = $25,000,000 - ($125,000,000 x 0.15) = $11,000,000 - ($50,000,000 x 0.15) RI Rank: 1. B 2. C 3. A = 0.15 = 0.20 = 0.22 =$0 = $6,250,000 = $3,500,000 b. c. ROI Rank: 1. C 2. B 3. A Chapter 23 Page 24 80. (continued) d. A ROI B ROI C ROI A RI B RI C RI e. = $19,500,000/$125,000,000 = $29,500,000/$150,000,000 = $15,500,000/$75,000,000 = 0.156 = 0.197 = 0.207 = $19,500,000 - ($125,000,000 x 0.15) = $ 750,000 = $29,500,000 - ($150,000,000 x 0.15) = $7,000,000 = $15,500,000 - ($75,000,000 x 0.15) = $4,250,000 Everyone would be pleased if residual income was used because residual incomes increase with the expansion. However, it would be difficult to evaluate each division on a comparative basis because each divisions investment base is different. Only the manager of Division A is pleased with the new investment if ROI is used because that is the only division with an increased ROI. In the case of additional investments that are required by corporate management, residual income may be the best to use for evaluating each manager individually, but not collectively. Difficulty: 3 Objectives: 3, 4, 9 Chapter 23 Page 25 CRITICAL THINKING 81. The executive vice president of Wicker Pen Company wants to establish an accountingbased performance measurement system for the company's new plant. The company has an accounting information system sufficient to support a fairly sophisticated performance measurement system. The new plant is going to be considered an investment center since its products will be markedly different from others the company currently sells. The new plant will have no internal dealings with other plants within the company. Required: What are some of the key steps that should be undertaken in the establishment of an accounting-based performance measurement system? Answer: Key steps include: 1. 2. 3. 4. 5. Choose variables that represent the company's financial goals for the plant. They would include those that relate to the plant as an investment center. Define the variables in terms of the company's general goals. Determine how the variables will be measured. Select benchmarks against which the variables will be measured. Select periodicity of reporting for each variable to be measured. 2 Objective: 2 Difficulty: 82. Companies are increasingly using nonfinancial measures to evaluate performance. Why? Since these numbers do not come from the companys financial records, why are they used? Answer: The correct answer will revolve around the objective of providing quality goods to the corporation's customers. Quality goods bring repeat business and satisfied customers are a business' best advertisement. The idea is that these nonfinancial measures concentrate on areas and questions that indicate the quality of a particular corporations products. While some of these items do not come from a companies' financial records, such as defect rates, they are quantifiable and can be verified. Difficulty: 3 Objective: 1 Chapter 23 Page 26 83. Bob Cellular Phone uses ROI to measure divisional performance. Annual ROI calculations for each division have traditionally employed the ending amount of invested capital along with annual operating income and net revenue. The Dupont method is generally used. The company's Phone Accessories Division had the following results for the last two years: 20x3 ROI = ($2,000,000/$20,000,000) x ($20,000,000/$10,000,000) = 0.20 20x4 ROI = ($2,400,000/$25,000,000) x ($25,000,000/$15,000,000) = 0.16 Corporate management was disappointed in the performance of the division for 20x4, since it had made an additional investment in the division that was budgeted for a 23% ROI. Required: a. b. Discuss some factors that may have contributed to the decrease in ROI for 20x4. Would there have been any substantial difference if average capital had been used? Register to View AnswerWhile sales increased by 25%, net income only increased by 20%. This may indicate that expenses increased more than they should have. Apparently, the expected marginal net income from the new investment was $1,150,000 ($5,000,000 x 0.23), and either sales were too low or expenses too high for the new products. But this calculation is somewhat hypothetical since we do not know expected sales. Start-up costs may have also contributed to the increased expenses of the first year's operations. An increase in investment also contributed to the decline in return on investment. Using average capital: = ($10,000,000 + $15,000,000)/2 = $12,500,000 ROI = $2,400,000/$12,500,000 = 0.192 Using average capital would have improved the ROI from 16 to over 19%. This would still have been a disappointment to management because the total ROI fell below expectations. Perhaps it is unreasonable to expect a new investment to achieve its target ROI in the first year of operations. Difficulty: 3 Objective: 3 b. Chapter 23 Page 27 84. The economic value added concept has attracted considerable attention in recent years. Explain the attractiveness of this number as a measure of performance. Answer: The attractiveness of economic value added at the divisional level is primarily the fact that it allows managers to incorporate the cost of capital in decisions at the divisional level. Difficulty: 3 Objective: 5 85. R&D Storage is a small, but diversified, moving and storage company. In recent years, its corporate income has declined to unacceptable levels. To change the direction of the company, the board of directors hired a new chief executive officer. She is currently considering three alternative ways to reward division managers for performance. They are: 1. 2. 3. Give each manager a competitive salary with no bonus for performance. Give each manager a base salary with the largest portion being a bonus based on performance, ROI being the yardstick. Give each manager a base salary with a bonus based on comparative performance with the other divisions. Required: Evaluate each of the ideas, giving strengths and weaknesses. Answer: 1. Opportunities for salary increases might be decided via other means such as improvements in employee motivation, cost savings ideas, or improved management skills. This method will fit some types of situations and managers better than the bonus methods, but should not be used in situations where a high degree of motivation is desired. 2. The second idea is good for motivating a manager to improve the performance of each given division. A weakness in this method occurs when managers make decisions that maximize return on investment in the short run because they have no intent to stay with the company over a long period of time. The third method is great for motivating managers to compete with each other. However, some reward should be available for the lowest rated manager if that manager's performance is, in fact, above the company's standard for performance. Suboptimization is a potential problem with this approach if the winning manager's bonus is substantially above everyone else's bonus. 2 Objectives: 8, 9 3. Difficulty: Chapter 23 Page 28

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Stanford - ANTHRO - 102A
Denielle Barcelona ANTHRO 102A November 23, 2010 Indus Collapse: The End or the Beginning of an Asian Culture?In Andrew Lawlers article, Indus Collapse: The End or the Beginning of an Asian Culture? in Science magazine, he talks about the debate that is
Emory - BIOCHEM - 2
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Emory - BIOCHEM - 2
1. Define and explain the role of each of the following in social behavior: A. territoriality B. dominance hierarchies C. courtship behavior Behavior, which includes muscular as well as nonmuscular activity, is everything that an animal does and how it do
Emory - BIOCHEM - 2
Name: Lindsey Aronoff ID: 0670682857Evolution - 2006 APMultiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. On which of the following did Linnaeus base his classification system? a. morphology a
Emory - BIOCHEM - 2
1. What is the term for metabolic pathways that release stored energy by breaking down complex molecules? a. anabolic pathways b. catabolic pathways c. fermentation pathways d. thermodynamic pathways e. bioenergetic pathways 2. What is the term used for t
Emory - BIOCHEM - 2
Definition of the disorder: Parkinson's is a progressive neurological condition affecting movements such as walking, talking, and writing. It impacts the specific part of the brain (substantia nigra) which produces the neurotransmitter, dopamine. Descript
Emory - BIOCHEM - 2
ALOPECIA AREATA: Bald patches on the scalp ALOPECIA TOTALIS: Total loss of scalp hair ALOPECIA UNIVERSALIS: Hair lost on the entire body, including eyebrows, eyelashes and nose hair The cause of alopecia is still unknown, but the most accepted hypothesis
Emory - BIOCHEM - 2
Hair normally grows through a process that includes periodic regeneration of hair follicles. The hair cycle is done in three defined stages. The first stage is growth, known as anagen, the second stage is regression, known as catagen, and the third stage
Emory - BIOCHEM - 2
Plant GroupsOrigin and Structure Of ReproductionMode Of Nutrition Of EmbryoStructure and Mode Of Transport Of Sperm swim through film of water to eggs flagellated enter archegonia in response to chemical attractionBryophytes some are bisexual female
Emory - BIOCHEM - 2
Kinetic Molecular Theory-is a model that is used to predict gas behavior. States that gas particles are in constant rapid, random motion. States that the particles of a gas are very far apart. This idea explains the fluidity and compressibility of gases.
Emory - BIOCHEM - 2
Allies during WWII? France, Great Britain, and Russia/Enemies (axis powers)? Japan, Germany, Italy/Civilian in charge of the MP? J.Robert Oppenheimer/General in charge of the MP? Leslie Groves/2 scientific problems encountered early in creating the atomic
Emory - BIOCHEM - 2
Energy- capacity to do some kind of work, always involved when there is a change in mattermelting,boiling,and chemincal change. Physical change- change in matter affects only physical properties. *grinding,cutting,melting,boiling* Chemical change- change
Emory - BIOCHEM - 2
Group-vertical similar properties Period-horizontal periodic law- increasing atomic # on periodic table representative elements- Group 1A through 7A noble gases-Group 0 Transition metals-Elements inGroup 2A and 3A interrupted in periods 4 and 5 Inner Tra
Emory - BIOCHEM - 2
Chemistry is the study of all substances and the changes that they can undergo. Chemistry has been called the central science because it overlaps so many sciences. The scientific method is a way of answering questions about the world we live in. Observati
Emory - BIOCHEM - 2
Ideal gas-unlike a real gas, does not condense to a liquid at low temps, does not have forces of attraction or repulsion between particles and is composed of particles that have no volume. R=8.314 L X KPa R=0.0821 L X atm R=62.4 torrHgmm X L Mol X K mol X
Emory - BIOCHEM - 2
the mole is the unit used to count particles*the use: avogados # to convert b/w amount in moles & # of particles* solve: prob convert b/w mass, amount in moles and # of particles using avogados 3 and mm* the SI unit for amount is called the mole(mol) a mo
Emory - BIOCHEM - 2
Absolute zero-lowest temperature that can be reached, -273.15 C or 0KDensity-mass of an object divided by its volume; can be used to identify a substanceInternational System of units-system of units that is an extension of the metric system.Joule-basic un
Emory - BIOCHEM - 2
Lab Report Lindsey Aronoff November 9, 2005 Period 7 M & M Radioisotopes A Model of C-14Lab Report Purpose: In this investigation the purpose is to mimic beta decay by using a model. Safety: Safety goggles are optional in this lab. Don not eat any of the
Emory - BIOCHEM - 2
Lindsey Aronoff 8/14/05 Period 7 Laboratory Report Purpose: In this investigation we will solve a scientific problem using the scientific method. We will make careful qualitative and quantitative observations recording accurate experimental data. The main
Emory - BIOCHEM - 2
Dmitri Mendeleev-developed the first periodic table. Periodic law-when elements are arranged in order of increasing atomic # and physical and chemical properties show a periodic pattern. Moseley-developed the concept of atomic #. Metals-have luster and sh
University of Florida - URP - 3001
Lindsey Aronoff 9712-9984 Paper #1 Everyday, pedestrians find obstacles getting to where they need to go. They should have the right-away, but sometimes cars dont obey this law. Some stoplights are literally five minutes long so it takes twenty to thirty
University of Florida - MAN - 3025
Lindsey Aronoff There are three different business personalities to every start-up and I believe the manager position resembles my personality the most. Managers are detail oriented who like to plan out every step before they take action. I start my morni
University of Florida - MAN - 3025
Chapter 12-theory in workplace environment When you do efforts and get rewards and you compare to other peoples rewards and their efforts Equity is being satisfied and not changing behavior (equity insensitive) Equity is unsatisfied and sensitive will cha
University of Florida - MAN - 3025
Chapter 13 March 24 Groups and teams-increasingly impt organizational and product management tool sometimes get to choose team-may be a good or bad thing, in work you dont get to choose virtual team-not all in same location (fully online class never meet
University of Florida - MAN - 3025
Chapter 14 Motivation is being inspired by someone, how do good leaders inspire someone Leadership is not coercive-INFLUENCE-show the path forward Managers allocate resources to what needs to be done, and find and allocate ppl to do work, Recruit, train,
University of Florida - MAN - 3025
Chapter 15 Management Communication one of most important things managers do How will do you become better listener, writer, speaker-indicators of individual success Encoding can also be a math, statistical message, or encriptyed secret message, translati
University of Florida - MAN - 3025
Know what organizational culture is, diff btw nonprofit,forproft, mutual benefit (distinguish btw them), know 7 key elements of an org 8.4, organizational design familiar with what it is and steps in the process, Chapter 9, human resurce management, selec
Florida State College - ENT - 2222
Lindsey Aronoff Everyone has the ability to become an entrepreneur. We learned in class that there is no correlation between IQ and creativity. There are some people who have more creativity than others and have the ability to generate a thousand ideas a
Florida State College - FIN - 4424
Lindsey Aronoff Group 15 Fin3403 Discussion Board Number 1 U.S. Hits Immigration Law This article describes how Obama and his administration have filed a lawsuit against Arizona because their state government passed a strict immigration law making it ille
Florida State College - FIN - 4424
Lindsey Aronoff Group 15 Fin3403 Discussion Board Number 2 Part 1: Two Cheers for the New Bank Capital Standards Recently, the supervisors of central banks and bank agencies in twenty-seven countries have come together in agreement to pass Basel III which
Florida State College - MAR - 1011
Review:Seafloor I. Vocab 1) Abyssal Plain- Deep ocean flat, floor. Results from sedimentation and 4 types include Lithogenous, Biogenous, Hydrogenous, and Cosmic. 2) Asthenosphere- Upper mantle that is plastic-like and provides energy for plate tectonics.
Florida State College - MAR - 1011
Review Sheet I Vocab 1) Capillary Wave- A wave for which the restoring force is the surface tension of the water. 2) Convection3) Bay of Fundy- located in Nova Scotia, has a funnel shaped entrance and is the most extreme tidal range in the world up to 50
Florida State College - MAR - 1011
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Florida State College - MAR - 1011
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Florida State College - MAR - 1011
Lindsey Aronoff Period 3 Vocab 1) Acanthocepaian2) Annelids- A segmented worm belonging to the phylum Annelida. 3) Bilateral Symmetry- A type of symmetry in which body parts are arranged in such a way that only one plane through the midline of the central
Florida State College - MAR - 1011
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University of Phoenix - ECON - 101
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N. Arizona - PHI - 105
I decided to do question 1. Euthyphros first definition of piety is that it is pious to prosecute the unjust individual who has committed murder. whether he is your father. Euthyphro supports this argument by saying first that Men hold Zeus to be the best
Punjab Engineering College - SKP - 2204
Cast I ron Cast SteelUNIVERSITY OF TECHNOLOGY, JAMAICA FACULTY OF ENGINEERINGFigure 1- magnetic circuit VELECTRIC DRIVES AND MACHINES 1 ASSIGNMENT #1LECTURER : DATE SUBMITTED:L. Daley March 10th 2010Group Members: Tineicesa Bradnock Andre` Lindsay S
Blue Ridge Community and Technical College - ECON - 101
Profit margin = net earnings = Sales680.7 = 10.8% 6,295.4Return on assets = net earnings = 680.7 = 16.1% Assets 4,237.1 Return on equity = net earnings = 680.7 = 39.7% Equity 1,713.4Comparison of Western Grain Ratios with the Industry profit margin ret
N.C. State - CH - 101
1. According to the discussion in Section 10.2 of the textbook, the solution process can be thought of as a three step process where: (1) intermolecular interactions in the solute are broken, (2) solvent cavities are formed, and (3) solute particles enter
N.C. State - CH - 101
1. Indicate which of the following substances could be used to make a solution that is 0.1 M in Pb2+ ion. a) Pb(ClO4)2 b) PbCl2 c) PbCrO4 d) PbCO3 e) PbS f) Pb(NO 3)2 Your answer should be a "word" made up of the letters a ,b, c, d, e and f. However, only
N.C. State - CH - 101
1. Determine the oxidation state of each nitrogen in each of the following molecules or ions. NOTE: when typing in the oxidation state, type the sign first and then the number. If the oxidation state is zero, type 0. a ) N2 0 b) N2H4 -2 c) NH3 -3 d) N2O +
N.C. State - CH - 101
1. Consider the In3+/In half reaction (In is the element indium). It does not appear in Table 11.1 in the textbook, but it has a potential of -0.34 V. a) Which of the following statements is true? In is a stronger reducing agent than Cu AND In3+ is a stro
N.C. State - CH - 101
1. What is the Lewis base in the reaction of NH3 and Ag1+ shown in Figure 12.4b in the text and in part b of the image below?NH3 Ag1+ What is the Lewis acid in the reaction of AlCl3 and Cl1- shown in Figure 12.4c in the text and in the image below?Cl1Al
N.C. State - CH - 101
1. In this and the following questions, you will write net equations for the acid-base reactions that occur when aqueous solutions are mixed. You will be asked in a subsequent question whether these reactions are extensive. Instructions1. You are urged t
N.C. State - CH - 101
1. What is the pH of a 1.65 x 10-5 M solution of HCl? Report your answer to two places past the decimal point. 4.782. What is the pH of a 2.15 x 10-2 M solution of NaOH? Report your answer to two places past the decimal point. 12.333. Indicate whether e
N.C. State - CH - 101
1. You may need to consult Figure 2.2 in your textbook to answer this question. a) Which photon has the shortest wavelength? Infrared Yellow visible light Microwave Radio wave Ultraviolet Red visible lightb) Which photon has the highest frequency? X-ray
N.C. State - CH - 101
1. You may need to consult Figure 2.2 in your textbook to answer this question. a) Which photon has the shortest wavelength? Infrared Yellow visible light Microwave Radio wave Ultraviolet Red visible lightb) Which photon has the highest frequency? X-ray
N.C. State - CH - 101
In sketching p-orbitals, the two lobes are often shaded differently because: the sign of the wavefunction is positive in one lobe and negative in the other the electron spin quantum number is positive in one lobe and negative in the other the charge on th
N.C. State - CH - 101
1. Based solely on their location on the periodic table and the predicted trends, rank the following atoms in ionization energy, from smallest to largest. Your response should be a four letter "word" made up of the letters a, b, c and d. For example, if y
N.C. State - CH - 101
1. Check all of the following statements that are true. (Hint: you may wish to look at Section 5.1 of the text.) There is no partial credit for this question. most bond energies lie between 10 and 100 kJ/mol most bond lengths lie between 100 and 300 pm (1
N.C. State - CH - 101
1. Describe the shape of each of the following molecules. You will need to draw the Lewis structures. N2O (N is central) bent with ~109o bond angles linear bent with ~120o bond angles HCN (C is central) bent with ~109o bond angles linear bent with ~120o b
N.C. State - CH - 101
1. You drew Lewis structures for these molecules in the previous assignment. You may wish to draw them again. What is the hybridization at: a) the central nitrogen in N2O? sp3 sp2 sp b) the carbon in HCN? sp2 sp sp3 c) the oxygen in OF2? sp2 sp sp3 2. Con
N.C. State - CH - 101
1. Given the following Lewis structures:All atoms obey the octet rule. Note that lone pairs are not shown, but must be taken into consideration to answer the question. Rank the structures in order of N/O bond energies from weakest to strongest. Your answ
N.C. State - CH - 101
1. Check all of the following that are not postulates in the Kinetic Molecular Theory of Gases, as presented in the textbook. You should check anywhere from one to six boxes. There are no attractive forces between the particles The average kinetic energy
N.C. State - CH - 101
1. Indicate yes (y) or no (n) whether hydrogen bonding is an important intermolecular force in the following.Your response should be a four letter word consisting of the letters y and n. For example, the response yynn would indicate yes, yes, no, no. ans
N.C. State - CH - 101
1. Answer the following regarding the three cubic unit cells. a) In comparing cells with the same sized atoms, which of the unit cells will have the largest value of a? (Hint: you may wish to consult Figure 8.3 and Figure 8.4 in the textbook.) body center
N.C. State - CH - 101
1. Consult the NaCl unit cell in Figure 8.14 and the data in Table 8.3 to answer the following questions. a) Along which line do the ions touch? edgeface diagonal b) What is the length of an edge of the unit cell in Angstroms? (Hint : don't forget how a
N.C. State - CH - 101
1. A system does 300 J of work and releases 400 J of heat. What is What is What is Esys? -700 Esurr? 700 J Euniv? 02. A system has 300 J of work done on it and releases 250 J of heat. What is Esys? 50J What is What is Esurr? -50J Euniv? 03. Which of the
N.C. State - CH - 101
1.Indicate the sign of S for each reaction:2H2(g) + O2(g) S < 0 S > 0 S ~ 02H2O(l)HF(aq) + NO21-(aq) S < 0 S ~ 0 S > 0F1-(aq) + HNO2(aq)H2(g) + I2(g) S < 0 S ~ 0 S > 02HI(g)2SO3(g) S ~ 0 S < 0 S > 02SO2(g) + O2(g)2. Consider the following reacti