1. Residual income is calculated as:
A. revenues less expenses.
B. contribution margin less minimum acceptable income.
C. operating income less minimum acceptable income.
D. sales less variable costs.
2. Which of the following is NOT a strategy for determining thetransfer price of a product?
A. Related party discounted price
B. Market price
C. Cost or cost-plus a markup
D. Negotiated price
3. Employee capabilities, information system capabilities, andthe company’s “climate for action” are important factors ofthe:
A. employee perspective.
B. customer perspective.
C. internal business perspective.
D. learning and growth perspective.
4. Assume Cucumber Company expects each division to earn an 8%target rate of return. Assume the Company’s Pickle Division had thefollowing results:
Sales $24,500,000
Operatingincome 1,250,000
Totalassets 15,500,000
The Division’s ROI is:
A. 8.1%.
B. 15.8%.
C. 5.1%.
D. 8.0%.
5. Assume Ametrine Company expects each division to earn an 8%target rate of return. Assume the Company’s Division A had thefollowing results:
Sales $24,500,000
Operatingincome 1,250,000
Totalassets 15,500,000
The Division’s RI is:
A.−$10,000.
B. $10,000.
C. −$710,000.
D. $710,000.
6. Which of the following are examples of KPIs?
A. Average customer satisfaction ratings
B. Number of repeat customers
C. Sales revenue growth
D. All of the above are examples of KPIs
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