管理会计(双语)课后答案answer-chapter 23.docx

CHAPTER 23PERFORMANCE MEASUREMENT, COMPENSATION, ANDMULTINATIONAL CONSIDERATIONSAn example of a performance measure based on external financial information would bemarket share.stock prices.innovation measures.defect rates.Which of the following does not describe the three steps in designing an accounting-based performance measure?The issues in each step are interdependent.The decision maker will often proceed through the steps several times before deciding on one or more performance measure(s).The answers to the questions raised at each step depend on top management’s beliefs about the organization.The steps must be done in sequence.The following data apply to questions 3 through 7.Information pertaining to Piney River Division of MO Corporation for 2004:Revenues$950,000Variable costs 575,000Traceable fixed costs 336,500Average invested capital350,000Imputed interest rate 10%The return on investment (ROI) wasa.4 percent.b.10 percent.c.11 percent.d.37 percent.The return on sales (ROS), a component of the DuPont method of profitability analysis, was (rounded to the nearest percent)a.11 percent.b.40 percent.c.1 percent.d.4 percent.The residual income wasa.$3,500.b.$35,000.c.$38,500.d.$0.If top management at MO Corporation adopts a 15 percent target ROI for the Piney River Division, which combination (while holding other factors constant) will yield this target ROI?A 1 percent increase in sales volumeA 5 percent decrease in average invested assetsA 2 percent increase in sales pricesA 3 percent decrease in fixed costsWhich of the following factors would not be needed to calculate EVA from the given information for Piney River Division of MO Corporation?Income tax rateWeighted-average cost of capitalCurrent liabilitiesCurrent assetsWhen managers set and measure target levels of performancehistorical-cost-based accounting measures are usually adequate for evaluating economic returns on new investments.historical-cost ROIs cannot be used to evaluate current performanc