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ACCT 292 Chapter 10 Performance Measurement in Decentralized Organizations questions with answers. $9.49   Add to cart
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ACCT 292 Chapter 10 Performance Measurement in Decentralized Organizations questions with answers.
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ACCT 292 Chapter 10 Performance Measurement in Decentralized Organizations questions with answers.

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  • September 23, 2024
  • 5
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • acct 292 chapter 10 performance measurement in dec

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  • CIMP - Certificate in Investment Performance Measurement
  • CIMP - Certificate in Investment Performance Measurement

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ACCT 292 Chapter 10 Performance
Measurement in Decentralized
Organizations questions with answers.
In decentralized organizations, decision-making authority is ANS -spread throughout the organization



An organization in which decision-making authority is spread throughout the organization is ANS -
decentralized



Lower-level managers are empowered to make decisions in a ______ organization, which can ________
motivation and job satisfaction. ANS -decentralized, increase



Which of the following is not one of the three primary types of responsibility centers? ANS -sales



Managers of cost centers are expected to ______. ANS -minimize costs, while providing an acceptable
level of service



Service departments, such as the accounting department, are generally considered _______ centers,
while sales offices are often considered _______ centers. ANS -cost, profit



In strongly decentralized organizations, even the lowest-level managers can make decisions. ANS -True



Net operating income ÷ Average operating assets = ______. ANS -Return on investment



Operations are able to respond quickly to customers and changes in the environment in a decentralized
organization because ANS -there are fewer managers that must be consulted before a decision is made



Net operating income is income before ________ and _______. ANS -interest, taxes

, Any part of an organization whose manager has control over and is accountable for all three centers
(cost, profit, or investments) is a(n) ______ center. ANS -responsibility



Which of the following business segments would not be considered a cost center? ANS -Retail outlet



Operating assets include ______. ANS -inventory

equipment

accounts receivable



Comparing actual net income to budgeted net income is often done to evaluate the manager of a(n)
_______ center. ANS -profit



Return on investment = ______. ANS -Net operating income ÷ Average operating assets



Which of the following ratios are part of the ROI formula? ANS -Net operating income ÷ Sales

Sales ÷ Average operating assets



EBIT is another term for ANS -net operating income



In order to fully understand how a manager's decisions can affect ROI, both ______ and ______ should
be computed. ANS -margin, turnover



The ROI formula typically uses ANS -average operating assets for the year



Valid criticisms of evaluating performance based on return on investment (ROI) include managers may
ANS -reject investment opportunities that are profitable for the company but have a negative impact on
a manager's ROI

be put in charge of a business segment that includes committed costs over which a manager has no
control

take actions that increase ROI in the short-run at the expense of long-term performance

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