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When assessing performance, one way to compensate for differences among divisions of a multinational organization would be for the parent company to: A) Use different
When assessing performance, one way to compensate for differences among divisions of a multinational organization would be for the parent company to: A) Use different target rates of return to compute residual incomes B) Modify the return on investment calculation so that foreign currency fluctuations are removed from all financial statement figures. C) Classify all domestic divisions as investment centers and all foreign divisions as profit centers D) Use financial performance measures for units whose records are kept in the domestic currency and non-financial mensures for units whose records are kept in a foreign currency In analyzing transfer prices, the: A) Buyer will not willingly purchase a product for less tha the ineremental costs incurred to mamufacture the product internally B) Seller wil not wllingly sell a product for less than the incremental costs incurred to make the product C) Buyer will willingly pay more than the ceiling transfer price D) Buyer will not pay less than the ceing transfer price method of profitability analysis recognizes the two basic ingredients in profit-making The increasing income per dollar of revenues and using assets to generate more revenues A) Balanced Scorecard B) Residual-Ineome C) Dupont D) Economic Value Added For determining the best mix of products, the one with the LEAST amount of influence is: A) The market price of the products B) Corporate office costs allocated to each product C) The use of capacity resources D) Contribution margins To discourage unnecessary use of a support department, management might: A) Not allocate any support department costs to user departments B) Allocate support department costs based upon user department usage C) Allocate a fixed amount of support department costs to each department regardless of use D) Issue memos on useful services provided by the support department
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