Reference no: EM132973102

Problem 1: Which one of the following statements is NOT correct?

Select one:

A. The balanced scorecard includes only non-financial measures of performance.

B. The balanced scorecard is based on the assumption that successful innovation drives customer acquisition, loyalty and growth that, in turn, leads to enhanced operating margins.

C. Key performance indicators (KPIs) are used in the balanced scorecard.

D. The continuous process of measuring a company's own products, services and activities against competitors' performance is known as benchmarking.

Problem 2: Return on investment (ROI) is calculated using which of the following formulae?

Select one:

A. Divisional net profit / Divisional investment in net assets.

B. Divisional net profit / Divisional investment in listed securities.

C. Divisional net profit / Divisional investment in total assets.

D. Divisional net profit before depreciation / Divisional investment in net assets.

Problem 3: Residual income (RI) is calculated as:

Select one:

A. Divisional net profit less (cost of capital x divisional net profit).

B. Divisional net profit less (cost of capital x investment in net assets).

C. Divisional net profit less (ROI x divisional net profit).

D. Divisional net profit less (ROI x investment in net assets).