1-5

1. Customer profitability analysis allows managers to do which of the following?

1. Identify the closest competitor.
2. Sell to higher end customers.
3. Manage each customers costs-to-serve.
4. Focus solely on service calls.

2. What is the focus of operational control?

1. Long-term operating performance.
2. The profitability of the company.
3. The activities of company executives.
4. Short-term operating performance.

3. The objectives of management control of the manager include:

1. Cost, quality, and functionality.
2. Management by objectives.
3. Management by exception.
4. Motivation, incentive, and fairness.

4. Cost allocation of costs for shared services in an organization is intended to remind managers of:

1. The cost and value of using shared resources.
2. How much capacity a firm has.
3. Manufacturing cycle time.
4. Variable costing income calculations.

5. The method for directly measuring the value of a firm's equity is:

1. Market value.
2. Sales multiple.
3. Earnings-based multiple.
4. Enterprise value