1.

Dickinson, Inc uses a balanced scorecard. One of the measures of the scorecard is the average education level of the firm's managers. Which balanced scorecard perspective would this measure most likely fit into?

	a.	Customer perspective
	b.	Learning and growth perspective
	c.	Internal business perspective
	d.	Financial perspective

2.

Which of the following statements follows from the controllability principle?

	a.	A profit center manager should be evaluated based on residual income, not return on investment.
	b.	An investment center manager should be evaluated based on return on investment, not residual income.
	c.	A profit center manager should be evaluated based on segment margin, not operation income.
	d.	A cost center manager should be evaluated on costs and revenues, not just costs.

3.

Which of the following is not a limitation of return on investment?

	a.	Use of ROI may lead to goal incongruence.
	b.	ROI is a lagging indicator of financial performance.
	c.	ROI evaluates the short-term.
	d.	ROI is a commonly used measure for financial performance.

4.

Wissota Co. has a material standard of 2 pounds per unit of output. Each pound has a standard price of $12 a pound. During February, Wissota Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400 units. What is the direct materials price variance?

	a.	$1,420 unfavorable
	b.	$860 unfavorable
	c.	$860 favorable
	d.	$1,420 favorable