Performance Measurement MCQs

Option A: market equity

Option B: total assets employed

Option C: total assets available

Option D: stockholders’ equity

Correct Answer: total assets employed ✔

Option A: interactive control system

Option B: belief systems

Option C: boundary systems

Option D: diagnostic control systems

Correct Answer: interactive control system ✔

Option A: net income

Option B: after tax income

Option C: residual income

Option D: operating income

Correct Answer: residual income ✔

Option A: net income

Option B: nominal income

Option C: residual income

Option D: residual investment

Correct Answer: residual income ✔

Option A: weighted average cost of capital

Option B: economic value added

Option C: after-tax operating income

Option D: net income

Correct Answer: weighted average cost of capital ✔

Option A: intrinsic motivation

Option B: extrinsic motivation

Option C: monetary motivation

Option D: bounded motivation

Correct Answer: intrinsic motivation ✔

Option A: return on sales

Option B: investment turnover

Option C: residual income

Option D: return on investment

Correct Answer: return on investment ✔

Option A: $113,000

Option B: $643,000

Option C: $743,000

Option D: $543,000

Correct Answer: $643,000 ✔

Option A: DuPont investment

Option B: return on investment

Option C: investment

Option D: investment turnover

Correct Answer: investment ✔

Option A: current liabilities

Option B: long-term liabilities

Option C: residual assets value

Option D: net residual income

Correct Answer: current liabilities ✔

Option A: $3,855,500

Option B: $314,500

Option C: $214,500

Option D: $114,500

Correct Answer: $114,500 ✔

Option A: opportunity cost of capital

Option B: working capital

Option C: total long term assets

Option D: weighted average cost of capital

Correct Answer: working capital ✔

Option A: interactive control system

Option B: belief system

Option C: boundary system

Option D: diagnostic control system

Correct Answer: belief system ✔

Option A: 8.24%

Option B: 7.24%

Option C: 9.24%

Option D: 10.24%

Correct Answer: 8.24% ✔

Option A: residual income

Option B: return on after-tax operating income

Option C: return on sales

Option D: return on investment

Correct Answer: return on sales ✔

Option A: $30,500

Option B: $20,500

Option C: $25,500

Option D: $32,500

Correct Answer: $30,500 ✔

Option A: accrual accounting rate of return

Option B: accounting rate of return

Option C: nominal rate of return

Option D: both a and b

Correct Answer: both a and b ✔

Option A: interactive control system

Option B: belief system

Option C: boundary system

Option D: diagnostic control system

Correct Answer: boundary system ✔

Option A: imputed assets

Option B: residual assets

Option C: current assets

Option D: nominal assets

Correct Answer: current assets ✔

Option A: residual income

Option B: return on investment

Option C: return on sales

Option D: investment turnover

Correct Answer: return on investment ✔

Option A: interactive control systems

Option B: belief systems

Option C: boundary systems

Option D: diagnostic control systems

Correct Answer: diagnostic control systems ✔

Option A: $142,020

Option B: $172,020

Option C: $162,020

Option D: $152,020

Correct Answer: $172,020 ✔

Option A: congruent costs

Option B: imputed costs

Option C: operating costs

Option D: transfer costs

Correct Answer: imputed costs ✔

Option A: $501,500

Option B: $401,500

Option C: $201,500

Option D: $301,500

Correct Answer: $201,500 ✔

Option A: return on sales * investment turnover

Option B: return on sales + investment turnover

Option C: return on sales – investment turnover

Option D: investment turnover + residual income

Correct Answer: return on sales * investment turnover ✔

Option A: congruent cost of investment

Option B: transfer cost of investment

Option C: operating cost of investment

Option D: imputed cost of investment

Correct Answer: imputed cost of investment ✔