23. A manufacturing plant of a company would be considered as a. A revenue cente

Question

23. A manufacturing plant of a company would be considered as a. A revenue center b. A profit center. c. An investment center. d. A cost center 24. Which of the following is NOT true of the balanced scorecard approach to performance measurement? a standard balanced scorecard can be developed to suit all organizations the a. b. measures developed must match the company's strategy and vision the measures should be linked such that improvement on one measure should lead to improvement in related measures it includes financial and nonfinancial measures c. d. 25. In considering effectiveness of a company's internal processes, the balanced scorecard method will look at a. R&D; costs b. Customer retention c. Residual income d. Employee turnover rate 26. Select the correct statement regarding relevant revenues. a. b. c. d. Relevant revenues must not differ between the alternatives being considered. Relevant revenues must make a difference in the decision under consideration. Past revenues may be relevant. Revenues that are relevant in one decision context are always relevant in other decision contexts. 27. Select the correct statement regarding opportunity costs. Opportunity costs need not be considered in decision making. a. b. Opportunity costs are relevant for decision-making purposes. Opportunity costs represent sunk costs. d. Opportumity costs represent unavoidable costs c. 28. A study has been conducted to determine if Product A should be dropped. Sales of the product total $200,000 per year; variable expenses total $140,000 per year. Fixed expenses charged to the product total $90,000 per year. The company estimates that $40,000 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income would: a. decrease by $10,000 per year b. increase by $30,000 per year c. decrease by $20,000 per year d. increase by $20,000 per year

Explanation / Answer

23 Answer:- An investment center

24 Answer:- A. A standard balanced scorecard can be developed to suit all organisation

25 Answer:- d. Employee turnover rate

26 Answer:- b. Relevant Revenues must take a difference in the decision under consideration

27 Answer:- b. Opportunity Cost are relevant for decision making purposes

28 Answer:- A. Decrease by $10,000 per year

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.