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Chapter 14 Business Unit Performance Measurement Answer Key
True / False Questions
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Multiple Choice Questions
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24.
The measure (ratio) that reflects the performance of a manager regarding sales and cost
of goods sold, but not other operating costs and income taxes, is called the:
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29.
How will increases in the following items affect return on investment (ROI)?
Expenses
Inventory
A.
Decrease
Decrease
B.
Decrease
Increase
C.
Increase
Decrease
D.
Increase
Increase
30.
A manager can always increase his/her return on investment (ROI) by:
31.
The Maxim Corporation reported the following operating results for its three divisions:
South, West, and East.
South
Division
West
Division
East
Division
Sales
$380,000
$1,700,000
$2,000,000
Operating
profits
$20,000
$50,000
$100,000
Divisional
assets
$200,000
$625,000
$800,000
32.
The Maxim Corporation reported the following operating results for its three divisions:
South, West, and East.
South
Division
West
Division
East
Division
Sales
$380,000
$1,700,000
$2,000,000
Operating
profits
$20,000
$50,000
$100,000
Divisional
assets
$200,000
$625,000
$800,000
33.
The Maxim Corporation reported the following operating results for its three divisions:
South, West, and East.
South
Division
West
Division
East
Division
Sales
$380,000
$1,700,000
$2,000,000
Operating
profits
$20,000
$50,000
$100,000
Divisional
assets
$200,000
$625,000
$800,000
