Investment ratios for subunits of an organization

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Reference no: EM1364047

Please answer the following multiple choice problems:

1). Value-added costs are standard costs based on
A) Practical standards.
B) Ideal usage standards.
C) Cycle time.
D) The value added.

2) Which of the following must occur before one can calculate the return on investment ratios for the subunits of an organization?
A) All investment costs must be collected and divided according to the number of subunits in the organization.
B) The total revenues must be allocated according to the number of subunits that will be calculating a return on investment.
C) The total costs of the organization must be allocated evenly to all subunits of the organization.
D) The corporate assets must be allocated appropriately to each responsibility subunit of the organization.

3) Which of the following is a true statement regarding performance evaluation?
A) Managers should be evaluated on those things over which they have influence.
B) Managers should be evaluated on the performance of the entire organization.
C) Sales personnel do not have complete control over the level of sales.
D) Managers should not be evaluated on those things over which they have influence, if they do not have complete control over them

Reference no: EM1364047

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