Orders completed per employee per day employee

Orders completed per employee per day; employee injuries per hour worked;
number of vehicle accidents per year.
164. CSO: 1C3b LOS: 1C3a
P.C. Programs Inc. produces software for individual users and small businesses. Rita
Morgan manages the customer hot line department for the firm and is responsible for
answering customer questions related to software products produced by all divisions of
the firm. For purposes of promoting goal congruence, which one of the following would
be the least appropriate measure of her performance?
a. Average time to provide an answer or solution to a customer.
b. Number of calls to the hot line for each new release of software.
c. Average time a customer is on hold.
d. Number of customer complaints due to incorrect responses given to customers.
165. CSO: 1C3b LOS: 1C3a
Which one of the following should be used for evaluating the performance of the Repair
and Maintenance Department that repairs production equipment in a firm devoted to
making keyboards for computers?
a. The variance between the firm’s budgeted and actual net income.
b. The total factory overhead variances.
c. The fixed overhead volume variances.
d. The response time and degree of satisfaction among the production departments.

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166. CSO: 1C3b LOS: 1C3a
Albert Hathaway recently joined Brannen University as the chief information officer of
the University Computing Services Department. His assigned task is to help reduce the
recurrent problem of cost overruns due to uncontrolled computer usage by the user
community, while at the same time not curtailing the use of information technology for
research and teaching. To ensure goal congruence, which one of the following
algorithms should be used to allocate the cost of the University Computing Services
Department to other departments within the university?
a. Actual rate times actual hours of computer usage.
b. Actual rate times budgeted hours of computer usage.
c. Budgeted rate times actual hours of computer usage.
d. Budgeted rate times budgeted hours of computer usage.
167. CSO: 1C3d LOS: 1C3i
For several years, Northern Division of Marino Company has maintained a positive
residual income. Northern is currently considering investing in a new project that will
lower the division’s overall return on investment (ROI) but increase its residual income.
What is the relationship between the expecte d rate of return on the new project, the firm’s
cost of capital, and the division’s current ROI?
a. The expected rate of return on the new project is higher than the division’s current
return on investment, but lower than the firm’s cost of capital.
b. Th e firm’s cost of capital is higher than the expected rate of return on the new
project, but lower than the division’s current return on investment.
c. The division’s current return on investment is higher than the expected rate of
return on the new project , but lower than the firm’s cost of capital.
d. The expected rate of return on the new project is higher than the firm’s cost of
capital, but lower than the division’s current return on investment.