Chapter 14 Business Unit Performance Measurement Answer Key
True / False Questions
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Multiple Choice Questions
21.
22.
23.
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:
25.
26.
27.
28.
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