Chap010 - Chapter 10 - Segment Reporting, Decentralization,...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 10 - Segment Reporting, Decentralization, and the Balanced Scorecard Chapter 10 Segment Reporting, Decentralization, and the Balanced Scorecard True / False Questions 1. All other things the same, if a division's traceable fixed expenses decrease the division's segment margin will increase. True False 2. The Legal Department of an organization is not considered a responsibility center because it does not generate revenue. True False 3. All other things the same, a decrease in average operating assets will increase return on investment (ROI). True False 4. Return on investment (ROI) may not be fully controllable by a manager because of committed costs. True False 5. When used in return on investment (ROI) calculations, operating assets include investments in land held for future use and investments in other companies. True False 6. Residual income is primarily useful because it helps to compare the performance of divisions of different sizes. True False 10-1 Chapter 10 - Segment Reporting, Decentralization, and the Balanced Scorecard 7. A balanced scorecard is an integrated set of performance measures that should be designed to support management's strategy throughout the organization. True False 8. The emphasis in the balanced scorecard is on improvement rather than meeting a preset standard. True False 9. If improvement in a performance measure on a balanced scorecard should lead to improvement in another performance measure, but does not, then management should reexamine its strategy. True False 10. A decentralized organization is one in which decisions are made by top management and then implemented by managers at lower operating levels. True False 11. An investment center is any responsibility center in an organization that controls cost and revenues and invested funds. True False Multiple Choice Questions 12. Higado Confectionery Corporation has a number of store locations throughout North America. In income statements segmented by store, which of the following would be considered a common fixed cost? A. store manager salaries B. store building depreciation expense C. the cost of corporate advertising aired during the Super Bowl D. all of the above 10-2 Chapter 10 - Segment Reporting, Decentralization, and the Balanced Scorecard 13. Which of the following performance measures will decrease if there is an increase in the accounts receivable? A. A B. B C. C D. D 14. Return on investment (ROI) is equal to the margin multiplied by: A. sales. B. turnover. C. average operating assets. D. residual income. 15. Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same?...
View Full Document

This note was uploaded on 05/03/2011 for the course ACC 1410 taught by Professor Bauser during the Spring '11 term at Marion Technical College.

Page1 / 98

Chap010 - Chapter 10 - Segment Reporting, Decentralization,...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online