1. __________ are often used as metrics for measuring a purchasing department's performance.

Material price variances Return on investments Residual incomes None of the above

2. The __________ is the best-known strategic performance measurement system.

action-profit linkage (APL) balanced scorecard (BSC) performance prism Cambridge performance measurement process

3. For a company's strategic objective to increase profits, management measures (tracks) market share and operating profit. Therefore, market share and operating profit are the company's __________.

measure maps performance metrics performance perspectives strategy maps

4. In the context of performance perspectives, performance in the __________ perspective focuses on operational efficiencies.

financial customer learning and growth internal processes

5. In the context of the objectives of performance perspectives, performance in the __________ perspective focuses on traditional accounting measures.

customer internal processes financial learning and growth

6. A __________ defines the purpose of an action taken within a company.

strategic objective strategic initiative strategy map performance metric

7. In the context of cognitive biases, __________ is the tendency for a person to see what they want to see in data.

motivated reasoning surrogation common measures bias None of the above

8. In the context of cognitive biases, __________ is the tendency to behave like the performance metrics are the strategic objectives

the common measures bias surrogation motivated reasoning None of the above

9. When managers compare the performance of divisions within a company, they may ignore performance metrics that are unique to individual divisions. Instead managers may focus on prevalent performance metrics for all divisions. This bias is called the __________.

surrogation motivated reasoning common measures bias None of the above 10. Which of the following statements is true about corporate social responsibility (CSR)?

CSR activities have always been thought of as a concern for companies and their management. The popularity of CSR efforts has decreased in the recent years. CSR activities exclude far-reaching issues such as reducing global poverty and protecting the environment. Recruiters often use CSR activities to hire top talent interested in making a difference beyond the traditional financial results.

11. Which of the following terms refers to a form of CSR information that helps managers evaluate the savings generated by using fewer natural resources in a company's operations?

Eco-sustainability diffusion Eco-efficiency measure Eco-innovation diffusion Eco-development measure

12. When corporate social responsibility (CSR) activities involve ensuring the ability to meet current needs without compromising the ability of future generations to meet their needs, the CSR activities are referred to as __________.

sustainability efforts fleeting endeavors growth efforts utilitarian endeavors 13. Athena Books Company is contemplating the installation of a wastewater recycling system. The amount to be invested in this system is $400,000. The system is expected to last 8 years and has no salvage value. Which of the following situations supports the installation of the recycling system? Assume the present value factor for an annuity of $1 at 10% for 8 periods is 5.3349 and the present value factor for $1 at 10% for 8 periods is 0.4665.

The total cash flow savings expected from the recycling system is $700,000. The annual maintenance cost for the system is $40,000. The annual maintenance cost for the system is equal to the cost of the existing water system. The recycling system will yield a savings of $78,000 per year.

14. Which of the following are examples of a capital investment in a CSR objective? A mining company invests in new drills and mining equipment.

A paper mill invests in wastewater recycling to avoid the potential legal liability for river contamination. A software company contributes to an educational fund for opportunity youth. A shipping company donates a portion of the annual profits to the building of safe and affordable homes for those disadvantaged by natural disasters.

15 Which of the following statements is true?

For a capital investment in a CSR proposal to be accepted, the value of the investment must be equal to the present value of the projected cash flows. If the projected cash outflow of the investment proposal equals the existing cost outflow, the CSR investment proposal can be accepted. A CSR proposal is accepted if the total annual cash flow is greater than the CSR investment. CSR investments that are legally mandated are justified by the requirements of the law rather than their immediate economic benefits.