Question : 43.Residual income can be defined as: A. Income remaining after dividends paid : 1259715

 

 

43.Residual income can be defined as:   

A. Income remaining after dividends are paid out.

 

B. Operating earnings minus return on investment.

 

C. Operating earnings plus a minimum acceptable return times average invested capital.

 

D. Operating earnings minus a minimum acceptable return times average invested capital.

 

 

 

 

44.Calculate the residual income assuming the following information:     

A. $156,000.

 

B. $108,000.

 

C. $219,000.

 

D. $45,000.

 

 

 

45.In considering customer’s needs, the balanced scorecard method will look at:   

A. Market share growth and customer retention.

 

B. Return on sales and sales turnover.

 

C. Residual income and return on investment.

 

D. Organizational procedures and information systems.

 

 

 

 

46.The set of activities necessary to create and distribute a desirable product or service to a customer is known as:   

A. A customer perspective.

 

B. Business process perspective.

 

C. Balanced scorecard.

 

D. Value chain.

 

 

 

 

47.The value chain usually starts with the _________ and ends with the ____________.   

A. Supplier; customer

 

B. Retailer; wholesaler

 

C. Customer; retailer

 

D. Retailer; customer

 

 

 

 

48.Which of the following is not a measure used by the financial perspective lens of the balanced scorecard?   

A. ROI.

 

B. EVA.

 

C. Residual income.

 

D. Net operating income.

 

 

 

 

49.Which of the following is not one of the strategies of the financial perspective lens of the balanced scorecard?   

A. Improve shareholder perspectives.

 

B. Improve credit rating.

 

C. Improve customer relations.

 

D. Reduce risk.

 

 

 

 

50.Which of the following is not one of the balanced scorecard lenses?   

A. Financial perspective.

 

B. Learning and growth perspective.

 

C. Production perspective.

 

D. Business process perspective.

 

 

 

 

51.Which of the following is not a strategy of the learning and growth lens of a balanced scorecard?   

A. Improve employee relations.

 

B. Improve customer relations.

 

C. Improve employee productivity.

 

D. Increase new product development.

 

 

 

 

52.One of the strategies of the business process perspective lens of the balanced scorecard is to improve the quality of the manufacturing process. Which of the following is not one of the measures?   

A. Number of on-time deliveries.

 

B. Machine downtime.

 

C. Percent of orders filled.

 

D. Scrap as a percentage of raw materials.

 

 

53.Management compensation plans:   

A. May be affected by adopting International Financial Reporting Standards since earnings under IFRS are typically higher than GAAP earnings.

 

B. May be affected by adopting International Financial Reporting Standards since earnings under IFRS are typically lower than GAAP earnings.

 

C. Will not be affected by IFRS since earnings are equivalent to GAAP.

 

D. Are decided by shareholders who do not consider GAAP or IFRS when deciding how much compensation managers receive.