This is the Original Test Bank for 10

Test Bank Horngren’s Cost Accounting

A Managerial Emphasis 10th Canadian Edition Srikant M. Datar Madhav V. Rajan Louis Beaubien Steve Janz

All Chapters Arranged Reverse: 23-1

This is the Original Test Bank for 10 th

Canadian Edition, All Other Files in the Market are Wrong/Old Questions.

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Cost Accounting: A Managerial Emphasis, 10Ce

(Datar) Chapter 23 Multinational Performance Measurement and Compensation 23.1 Analyze and evaluate alternative measures of financial performance 1) Many common performance measures rely on internal financial and accounting information.

Answer: TRUE

Diff: 1 Type: TF

CPA Competencies: Chapter 23 -

3.5.1 Performs sensitivity analysis,

3.5.2 Evaluates sustainable profit maximization and capacity management performance,

3.6.1 Evaluates performance using accepted frameworks,

3.6.2 Evaluates performance of responsibility centres,

3.6.3 Evaluates root causes of performance issues,

3.4.1 Evaluates sources and drivers of revenue growth

Skill: Remembering

Objective: LO 23-1

2) Some companies present financial and non-financial performance measures for various organization units in a single report called the financial performance scorecard.

Answer: FALSE

Explanation: balanced scorecard

Diff: 2 Type: TF

CPA Competencies: Chapter 23 -

3.5.1 Performs sensitivity analysis,

3.5.2 Evaluates sustainable profit maximization and capacity management performance,

3.6.1 Evaluates performance using accepted frameworks,

3.6.2 Evaluates performance of responsibility centres,

3.6.3 Evaluates root causes of performance issues,

3.4.1 Evaluates sources and drivers of revenue growth

Skill: Remembering

Objective: LO 23-1

3) In establishing performance measures and compensation policy, the issues are interdependent and the decision maker may proceed through a series of decisions several times before selecting the performance measure(s).

Answer: TRUE

Diff: 2 Type: TF

CPA Competencies: Chapter 23 -

3.5.1 Performs sensitivity analysis,

3.5.2 Evaluates sustainable profit maximization and capacity management performance,

3.6.1 Evaluates performance using accepted frameworks,

3.6.2 Evaluates performance of responsibility centres,

3.6.3 Evaluates root causes of performance issues,

3.4.1 Evaluates sources and drivers of revenue growth

Skill: Remembering

Objective: LO 23-1

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4) ROI, residual income, and economic value-added, can be used as performance measures.

Answer: TRUE

Diff: 1 Type: TF

CPA Competencies: Chapter 23 -

3.5.1 Performs sensitivity analysis,

3.5.2 Evaluates sustainable profit maximization and capacity management performance,

3.6.1 Evaluates performance using accepted frameworks,

3.6.2 Evaluates performance of responsibility centres,

3.6.3 Evaluates root causes of performance issues,

3.4.1 Evaluates sources and drivers of revenue growth

Skill: Remembering

Objective: LO 23-1

5) There are three basic ingredients in profitability: investment, revenue, and debt.

Answer: FALSE

Explanation: investment, revenue, costs

Diff: 2 Type: TF

CPA Competencies: Chapter 23 -

3.5.1 Performs sensitivity analysis,

3.5.2 Evaluates sustainable profit maximization and capacity management performance,

3.6.1 Evaluates performance using accepted frameworks,

3.6.2 Evaluates performance of responsibility centres,

3.6.3 Evaluates root causes of performance issues,

3.4.1 Evaluates sources and drivers of revenue growth

Skill: Remembering

Objective: LO 23-1

6) Return on investment highlights the benefits that managers can obtain by reducing their investments in current or fixed assets.

Answer: TRUE

Explanation: Some firms use total assets in the denominator; others use total assets minus current liabilities.Diff: 2 Type: TF

CPA Competencies: Chapter 23 -

3.5.1 Performs sensitivity analysis,

3.5.2 Evaluates sustainable profit maximization and capacity management performance,

3.6.1 Evaluates performance using accepted frameworks,

3.6.2 Evaluates performance of responsibility centres,

3.6.3 Evaluates root causes of performance issues,

3.4.1 Evaluates sources and drivers of revenue growth

Skill: Remembering

Objective: LO 23-1

2

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7) Imputed costs are costs recognized in particular situations that are not regularly recognized by accrual accounting procedures.

Answer: TRUE

Diff: 2 Type: TF

CPA Competencies: Chapter 23 -

3.5.1 Performs sensitivity analysis,

3.5.2 Evaluates sustainable profit maximization and capacity management performance,

3.6.1 Evaluates performance using accepted frameworks,

3.6.2 Evaluates performance of responsibility centres,

3.6.3 Evaluates root causes of performance issues,

3.4.1 Evaluates sources and drivers of revenue growth

Skill: Remembering

Objective: LO 23-1

8) The imputed cost of an investment is the required rate of return times the investment.

Answer: TRUE

Diff: 2 Type: TF

CPA Competencies: Chapter 23 -

3.5.1 Performs sensitivity analysis,

3.5.2 Evaluates sustainable profit maximization and capacity management performance,

3.6.1 Evaluates performance using accepted frameworks,

3.6.2 Evaluates performance of responsibility centres,

3.6.3 Evaluates root causes of performance issues,

3.4.1 Evaluates sources and drivers of revenue growth

Skill: Remembering

Objective: LO 23-1

9) Residual income is income plus an imputed interest charge for the investment.

Answer: FALSE

Explanation: "minus" the imputed interest charge

Diff: 1 Type: TF

CPA Competencies: Chapter 23 -

3.5.1 Performs sensitivity analysis,

3.5.2 Evaluates sustainable profit maximization and capacity management performance,

3.6.1 Evaluates performance using accepted frameworks,

3.6.2 Evaluates performance of responsibility centres,

3.6.3 Evaluates root causes of performance issues,

3.4.1 Evaluates sources and drivers of revenue growth

Skill: Remembering

Objective: LO 23-1

3 .

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