Performance Management Exam Solutions
Course Introduction
Performance Management explores the strategies, tools, and processes organizations use to assess, guide, and enhance employee performance in alignment with organizational goals. The course examines methods of setting performance expectations, providing feedback, conducting appraisals, and designing reward systems to motivate and retain talent. Key topics also include performance measurement, coaching, managing underperformance, and linking individual contributions to broader business objectives. Through case studies and practical exercises, students gain the knowledge and skills necessary to implement effective performance management systems that drive organizational success.
Recommended Textbook
MANAGERIAL ACCOUNTING Version 1.0 by Kurt Heisinger and Joe
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13 Chapters
878 Verified Questions
878 Flashcards
Source URL: https://quizplus.com/study-set/3571
Page 2
Hoyle
Chapter 1: What Is Managerial Accounting
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83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/70918
Sample Questions
Q1) It is important to include small inexpensive items (such as glue or nails)related to production as direct materials,in order to calculate accurate product cost data.
A)True
B)False
Answer: False
Q2) Internal auditor
Answer: D
Q3) The managerial accountant typically reports to the:
A)controller.
B)chief executive officer.
C)financial accountant.
D)tax accountant.
E)None of the above.
Answer: A
Q4) The term "product costs" refers exclusively to the direct labor used in the production process.
A)True
B)False
Answer: False
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Chapter 2: How Is Job Costing Used to Track Production Costs
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44 Verified Questions
44 Flashcards
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Sample Questions
Q1) All of the following are reasons that managers track revenues and costs using a job costing system except:
A)Managers use the information to record product costs as period costs.
B)Managers want to know if individual jobs are profitable.
C)Managers compare actual costs with estimated costs throughout the project to identify unexpected changes as early as possible.
D)Managers assess the accuracy of original cost estimates.
E)None of the answer choices is correct.
Answer: A
Q2) If the under- or overapplied overhead amount is considered to be material,which of the following accounts would be the least likely to be used when closing the Manufacturing Overhead account at the end of the period?
A)Raw Materials Inventory.
B)Work in Process Inventory.
C)Finished Goods Inventory.
D)Cost of Goods Sold.
E)None of the answer choices is correct.
Answer: A
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Chapter 3: How Does an Organization Use Activity-Based
Costing to Allocate Overhead Costs
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71 Verified Questions
71 Flashcards
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Sample Questions
Q1) Which of the following would be the best allocation base for a product designed for a specific customer?
A)Quantity of materials used.
B)Hours of design time.
C)Square feet of space occupied.
D)Number of new products.
E)None of the answer choices is correct.
Answer: B
Q2) Companies that use the least number of cost pools possible tend to have the most accurate overhead allocation process.
A)True
B)False Answer: False
Q3) Appraisal costs are the same as detection costs.
A)True
B)False
Answer: True
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Page 5
Chapter 4: How Is Process Costing Used to Track
Production Costs
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) Everlast Inc.had 12,000 units in WIP Inventory at December 1 that were 70% complete with respect to direct labor and overhead.During December,40,000 units were completed.On December 31,the 14,000 units in WIP Inventory were 30% complete as to direct labor and overhead.Direct materials are added at the beginning of the process.How many units were started during December?
A)42,000
B)66,000
C)38,000
D)32,000
E)None of the answer choices is correct.
Q2) Which of the following statements is true regarding cost per equivalent unit?
A)This calculation only includes variable costs.
B)This measure is used to assign costs to units transferred out.
C)This measure always stays the same from one month to the next regardless of different levels of production.
D)The formula to calculate this measure uses total equivalent units accounted for divided by total costs to be accounted for.
E)None of the answer choices is correct.
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Chapter 5: How Do Organizations Identify Cost Behavior
Patterns
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) To accurately predict costs,managers must understand how costs behave with changes in activity.
A)True
B)False
Q2) Randle Company ran a regression analysis comparing total units of production and maintenance costs for the past four months.The regression analysis shows an R-squared of 0.76.Which of the following statements best describes this measure?
A)76 percent of the total maintenance costs are fixed and 24 percent are variable.
B)76 percent of the variation in maintenance costs is not explained by the increase or decrease in production.
C)76 percent of the variation in maintenance costs is explained by the increase or decrease in production.
D)76 percent of the company's total costs are maintenance costs.
E)None of the answer choices is correct.
Q3) Per unit fixed costs change with changes in activity.
A)True
B)False
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Page 7
Chapter 6: How Is Cost-Volume-Profit Analysis Used for Decision Making
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) Refer to Exhibit 6-6.Which of the following is the correct contribution margin per unit?
A)$15.00
B)$5.00
C)$40.00
D)$25.00
E)None of the answer choices is correct.
Q2) Which of the following companies would be most likely to use the break-even point expressed in units?
A)An accounting firm
B)A law firm
C)An electrician
D)An automobile dealer
E)None of the answer choices is correct.
Q3) The margin of safety cannot be calculated for multiple product and service organizations.
A)True
B)False
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Page 8
Chapter 7: How Are Relevant Revenues and Costs Used to
Make Decisions
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) The differential analysis format for deciding whether to keep or drop a customer is similar to that used for making product line decisions.
A)True
B)False
Q2) Davis Company has $20 per unit in variable costs and $800,000 per year in fixed costs.Demand is estimated to be 400,000 units per year.What is the desired price per unit if a markup of 30% on total cost is used to determine the price?
A)$26.00
B)$37.40
C)$28.60
D)$34.00
E)None of the answer choices is correct.
Q3) Which of the following is not relevant in a special order decision?
A)Variable costs.
B)Opportunity costs.
C)Sunk costs.
D)Avoidable fixed costs.
E)None of the answer choices is correct.
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Chapter 8: How Is Capital Budgeting Used to Make Decisions
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71 Verified Questions
71 Flashcards
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Sample Questions
Q1) If a project's net present value is negative,the internal rate of return is:
A)less than the discount rate.
B)equal to the discount rate.
C)greater than the discount rate.
D)cannot be determined without more information.
Q2) A depreciation tax shield is the tax savings resulting from depreciation expense.
A)True
B)False
Q3) Most managers use spreadsheets to calculate the internal rate of return for an investment proposal.
A)True
B)False
Q4) Refer to Exhibit 8-3.What is the net present value of Investment A (rounded to the nearest dollar)?
A)$1,104,688
B)$294,730
C)$34,730
D)$100,000
E)None of the answer choices is correct.
10
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Chapter 9: How Are Operating Budgets Created
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68 Verified Questions
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Sample Questions
Q1) Merchandising companies and service organizations do not use production budgets.
A)True
B)False
Q2) Organizations use budgets to control operations,because budgets provide a means to evaluate employee and company performance.
A)True
B)False
Q3) A top-down approach to budgeting motivates employees and leads to greater budget acceptance.
A)True
B)False
Q4) When preparing a production budget,the desired ending finished goods inventory for the first period is:
A)the beginning finished goods inventory for the second period.
B)always the same as the beginning finished goods inventory for the first period.
C)not used in this budget.
D)always less than the beginning finished goods inventory for the second period.
E)None of the answer choices is correct.
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11
Chapter 10: How Do Managers Evaluate Performance Using Cost Variance Analysis
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69 Verified Questions
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Sample Questions
Q1) All of the following are possible causes of a favorable labor rate variance except:
A)a higher mix of unskilled workers causing hourly rates to be lower than anticipated.
B)product demand that was lower than expected causing a reduction in the amount of overhead initially anticipated.
C)a higher mix of skilled workers causing hourly rates to be higher than anticipated.
D)a new labor contract that was negotiated at lower pay rates than anticipated.
E)None of the answer choices is correct.
Q2) The variable overhead efficiency variance is the difference between the actual hours worked at the actual rate and the standard hours worked at standard rate.
A)True
B)False
Q3) Favorable variances are recorded with a credit to the appropriate variance account. A)True
B)False
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Chapter 11: How Do Managers Evaluate Performance in
Decentralized Organizations
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) Asset turnover is calculated as sales divided by average operating assets.
A)True
B)False
Q2) A cost center is an organizational segment in which the manager is responsible for costs and revenues,but not investments in assets.
A)True
B)False
Q3) An investment center is an organizational segment in which the manager is responsible for costs,revenues,and investment in assets.
A)True
B)False
Q4) All of the following statements are true about return on investment (ROI)except:
A)Breaking out ROI into two ratios provides information that helps division managers identify areas for improvement.
B)ROI can be improved by decreasing the operating profit margin.
C)ROI can be calculated using the gross book value method.
D)ROI can be improved by increasing asset turnover.
E)None of the answer choices is correct.
13
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Chapter 12: How Is the Statement of Cash Flows Prepared and Used
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65 Verified Questions
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Sample Questions
Q1) Refer to Exhibit 12-1.Which of these items would appear in the operating activities
A)1 & 4
B)3 & 5
C)2 & 5
D)3
E)None of the answer choices is correct.
Q2) Refer to Exhibit 12-2.Which of these items would appear in the financing activities
A)1 & 6
B)2 & 3
C)1 & 5
D)4 & 6
E)None of the answer choices is correct.
Q3) A capital expenditure ratio greater than 1.0 indicates the company was able to generate enough operating cash to cover investments in property,plant and equipment.
A)True
B)False
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Chapter 13: How Do Managers Use Financial and
Nonfinancial Performance Measures
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) All of the following ratios are used to evaluate short-term liquidity except:
A)the receivable turnover ratio.
B)the current ratio.
C)the inventory turnover ratio.
D)the gross margin ratio.
E)None of the answer choices is correct.
Q2) All of the following measures evaluate profitability except:
A)profit margin ratio.
B)return on assets.
C)market capitalization.
D)gross margin ratio.
E)None of the answer choices is correct.
Q3) The quick ratio is a short-term liquidity ratio.
A)True
B)False
Q4) Most accounting computer programs,such as QuickBooks,provide common-size analysis reports.
A)True
B)False
Page 15
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