1. Residual income is calculated as:

A. revenues less expenses.

B. contribution margin less minimum acceptable income.

C. operating income less minimum acceptable income.

D. sales less variable costs.

2. Which of the following is NOT a strategy for determining the transfer price of a product?

A. Related party discounted price

B. Market price

C. Cost or cost-plus a markup

D. Negotiated price

3. Employee capabilities, information system capabilities, and the companys climate for action are important factors of the:

A. employee perspective.

B. customer perspective.

C. internal business perspective.

D. learning and growth perspective.

4. Assume Cucumber Company expects each division to earn an 8% target rate of return. Assume the Companys Pickle Division had the following results:

Sales $24,500,000

Operating income 1,250,000

Total assets 15,500,000

The Divisions ROI is:

A. 8.1%.

B. 15.8%.

C. 5.1%.

D. 8.0%.

5. Assume Ametrine Company expects each division to earn an 8% target rate of return. Assume the Companys Division A had the following results:

Sales $24,500,000

Operating income 1,250,000

Total assets 15,500,000

The Divisions RI is:

A.$10,000.

B. $10,000.

C. $710,000.

D. $710,000.

6. Which of the following are examples of KPIs?

A. Average customer satisfaction ratings

B. Number of repeat customers

C. Sales revenue growth

D. All of the above are examples of KPIs