Which of the following is not a measure that management can use in evaluating and controlling investment center performance? a.residual income b.negotiated price c.income from operations d.rate of return on investment

Q: Match each of the following terms with the best definition. A. Theory of constraints B. Sunk cost…

A: Given the following question: Theory of constraints Sunk cost Differential analysis Opportunity…

Q: Which of the following statements regarding the balanced scorecard is not correct?a. It seeks to…

A: Balanced Scorecard is an evaluation method to measure the actual performance. This is prepared to…

Q: hat way can the use of ROI as a performance measure for investment centers lead to bad decisions?…

A: ROI is the return on investment in which the there is consideration for the current year profit only…

Q: Identify and explain the criticisms of using return on investment (ROI) as the onlyperformance…

A:

Q: most significant drawback of evaluating investment centers using RO

A: ROI is an accounting metric used to evaluate the return on invested capital of the business.

Q: What is the biggest disadvantage of using ROI to evaluate investment centers?

A: Return on Investment: Under return on Investment, the investment opportunity with the highest rate…

Q: measurement considered as financial rather than non-financial measures includes all of the…

A: Financial measures of performance measurement means methods by which performance of the organisation…

Q: What is return on marketing investment (rOMI)? howdoes considering marketing as an investment…

A: Return on marketing expenditure, or ROMI, is an indicator utilized to evaluate the success of a…

Q: Faced with a long-run make-or-buy decision, the manager should do all of the following except: a.…

A: Ans. While considering a make - or- buy decision a manager is expected to do a lots of study and…

Q: Discuss the importance of nonfinancial information in measuring investment-center performance.

A: Non Financial Information Non financial information refers to those aspects of business which cannot…

Q: explain how return on investment might lead a divisional manager to reject new investments

A: Return on investment (ROI):   This financial ratio evaluates how efficiently the assets are used in…

Q: Which of the following statement(s) is/are not true?

A: Return on investment is return earned in term of percentage of average assets employed.

Q: computing ROI,

A: In computing ROI, land held for future use Correct Answer Is A  considered a nonoperating asset.

Q: Explain why it is important in performance evaluation to distinguish between investment centers and…

A: Return on investment (ROI): Return on investment evaluates how efficiently the assets are used in…

Q: Calculate the return on investment for each division. If required, round the ROI to the nearest…

A: Return on Investment is the Income which the Company has Earned for the investment on the project,…

Q: Which of the following statements is true about agency efficiency?   a.  The costs from vertical…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: g, does Transfer Pricing af

A: Transfer Pricing: Transfer prices are required when profit centers are utilized to determine the…

Q: What is the primary disadvantage of utilizing revenue from operations to evaluate investment…

A: Investment centers are businesses that invest in other companies to boost their profits.

Q: Which of the following statements about the balanced scorecard approach is false? O It requires…

A: A balanced scorecard is a very important and useful management technique used for performance…

Q: ent center manage

A: Rate of investment  :money is a metric that's wide wont to live the likelihood of gaining a come…

Q: In what way can the use of ROI as a performance measure for investment centers lead to bad…

A: ROI:   It is a measure on the amount of return on a particular investment with respect to the…

Q: Which one of the following is related to the decision making function of management: O a.…

A: Management is required to take various decisions from time to time so as to perform the business…

Q: In what ways might using ROI as a performance indicator for investment centers lead to poor…

A: ROI: It measures the amount of return on a specific investment to the cost of the investment. The…

Q: Which of the following statements is true regarding the sensitivity analysis approach to investment…

A: In simple words we can understand the basic meaning of Sensitivity analysis " Whenever manager takes…

Q: In a management setting, does Transfer Pricing affects Absorption & Variable, Budgeting, and…

A: Transfer Pricing Transfer prices are required when profit centres are utilised to determine the…

Q: Which one of the following is related to the decision making function of management a. Performance…

A: Ans. Every organisation needs to make decisions among any two or more than two alternatives so to…

Q: Criticisms of return on investment as the only performancemeasure include:a. ROI focuses on…

A: Return on investment is a measure used compare the benefit received by the investors when compared…

Q: What is a major shortcoming of just using Income from Operations as a performance measure for…

A: Income from operations states the results of deducting the operating expenses from the gross profit.…

Q: Demonstrate and compare how return on investment and residual income are used to assess the success…

A: It essentially refers to the average return on an investment over a certain period. It's pretty…

Q: Which one of the following is NOT a budgetary benefit? It establishes the organization's goal. It…

A: Budgeting is a written plan covering projected activities of a firm for a defined period of time…

Q: What is the most significant drawback of utilizing ROI to assess investment centers?

A: Return on Investment:  The investment opportunity with the most significant rate of Return is…

Q: Residual income is better measure for performance evaluation of an investments center manager than…

A: Correct Option is 2nd - Desirable investments decisions will not be neglected by high-return…

Q: How may using ROI as a success indicator for investment centers lead to poor decisions? How does the…

A: ROI: It calculates the amount of return on a particular investment about the investment's cost. The…

Q: Show and compare how return on investment and residual income are used to evaluate the performance…

A: Introduction: It refers to the average return on an investment over a specific period. It's…

Q: The best measure for evaluating the effectiveness of a manger in an investment center would be   A.…

A: Responsibility Center is division of organization into different center with each center responsible…

Q: Explain how a CVP analysis would be useful for determining whether the investment is worth it. Also,…

A: Cost value analysis (CVP) determines how the changes in costs and volume affects operating income…

Q: What is the major shortcoming of using income from operations as a performance measure for…

A: Investment center: A department or unit or division of a corporation where its manager is assigned…

Q: Which statement below best describes an investment center? a. The authority to make decisions…

A: Definition: Responsibility center: The departments of the organization are generally referred to as…

Q: Which of the following performance measures will decrease if the minimum required rate of return…

A: Return on investment is the return earned by the investment on its investment. It is computed by…

Q: Which of the following statements concerning performance evaluation tools used in decentralized…

A: Performance evaluation means when actual performance is being compared with the budgeted numbers and…

Q: Please explain a major shortcoming of using income from operations as a performance measure for…

A: Invesment centers are those units or organisations that a business will utilise its capital to…

Q: Which of the following statement(s) is/are not true?      i. Return On Investment (ROI) as a…

A: i. Return On Investment (ROI) as a performance measure may discourage managers of divisions with…

Q: In what way can the use of ROI as a performance measure for investment centers lead to baddecisions?

A: Return On Investment (ROI): It is a measure on the amount of return on a particular investment with…

Q: Which of the following is not a characteristic of the strategic planning process? a. emphasis on…

A: Strategic planning process is determined by the top level managers to identify the objective of the…