Question
So really struggling on these 14 questions out of 100. I figured out the rest but am struggling a bit on thse True or false
So really struggling on these 14 questions out of 100. I figured out the rest but am struggling a bit on thse True or false and 2 multiple choice if i can get help and feedback would be great thank you !
1. Suppose a company evaluates divisional performance using both ROI and residual income. The company's minimum required rate of return for the purposes of residual income calculations is 12%. If a division has a residual income of $6,000, then its ROI is less than 12%. t/f
2. Financial measures such as ROI are generally better than nonfinancial measures of key success drivers such as customer satisfaction as leading indicators of future financial performance. t/f
3. An advantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income. t/f
4. Net operating income is income before interest and taxes. t/f
5. In essence, a balanced scorecard lays out a theory of how the company can take concrete actions to attain its desired outcomes. The strategy should seem plausible, but it should be regarded as only a theory. t/f
6. Residual income is the difference between net operating income and the product of average operating assets and the minimum rate of return. t/f
7. Future costs that do differ among the alternatives are not relevant in a decision. t/f
8. The book value of an old machine is always considered an opportunity cost in a decision. t/f
9. A vertically integrated company is less dependent on its suppliers than a company that is not vertically integrated. t/f
10. A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to enjoy economies of scale that result in higher quality and lower cost than if every company makes its own parts. t/f
11. In a special order situation that involves using capacity that is not idle, opportunity costs are zero. t/f
12. A cost that will be incurred regardless of which alternative is selected is not relevant when choosing between the alternatives.t/f
13.Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of:
A. residual income
B. segment margin
C. return on investment
D. contribution margin
14. Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same?
A. A reduction in expense
B. an increase in sales
C. an increase in operating assets
D. an increase in net operating income
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