Question

QUESTION 32

1. Cash decreases due to the payment of dividends would be found in which section of the statement of cash flows?

   		The financing activities section
   		The investing activities section
   		The operating activities section
   		The accrual activities section

2 points   

QUESTION 33

1. Which of the following would most likely be classified as a cost center?

   		The automotive division of a large, decentralized corporation
   		The Mt Pleasant branch of the Kohl's department store chain
   		The Parks and Resorts business segment of the Walt Disney Company
   		The accounting department of manufacturing company

2 points   

QUESTION 34

1. A balanced scorecard is:

   		An evaluation process that focuses on productivity
   		A performance measurement system that is strictly directed toward sales growth
   		A performance measure that evaluates multiple categories related to organizational goals
   		A series of checks and balances designed to be mutually cooperative with the financial statements

2 points   

QUESTION 35

1. In which section of the balanced scorecard would you track the number of returned products?

   		The customer perspective
   		The learning and growth perspective
   		The internal business process perspective
   		The financial perspective

Answer 1

Question 32

Answer is A) The Financing Activities section

Payment of Dividend is financing activities section in cash flow statement. Dividend is the part of net profit paid to shareholders as returns. Since Shareholders capital is deployed in business it is financing activity. Any activity relating to shareholders’’ equity like raise of equity, right issue or dividend payment will be part of financing activity in Cash flow statement. Payment of Dividend is Cash outflow in financing activity

Question 33

Answer is D) The Accounting Department of manufacturing division

A Cost center is a center which accounts for cost incurred only. It is not accountable for Revenue and profits. A Manufacturing division procures Raw material, incurs labor and overheads to convert raw material materials into finished goods. Hence it is Cost center from Cost accounting point of view. All costs of manufacturing division are accounted in Accounting Department like receipt of raw material , overheads incurred, etc. Other 3 options given in the question are accountable for revenue also. Hence the right answer is Accounting department of manufacturing division

Question 34

Answer is C) A performance measure that evaluates multiple categories related to organizational goals

Balance Scorecard is a performance measure metric to achieve organizational goals. There are four measures part of Balance Scorecard – Financial, Internal business process, Learning and Growth and Customer.

Financial measures – measure financial metrics like return on equity, gross margin, net margin etc

Internal business process – measures internal metrics like capacity utilization, new product launches, Defect free rate,

Learning and Growth- measures employee related metrics like employee satisfaction, employee turnover, hours of training and development

Customer – measure customers related metrics like customer satisfaction, consumer complaints, market share etc.

Question 35

Answer is A) The Customer perspective

Balance Scorecard is a performance measure metric to achieve organizational goals. One of the importance perspectives is Customer perspective. Customers are important pillar of an organization since they are the one who purchase what organization produces. Hence it is important to meet their expectations. Many organizations track Customer satisfaction first so that they can get maximum market share. Hence number of returned products will be tracked as part of Customer perspective. Many organizations have a separate department to track Customer related activities and give feedback to organization.