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    12.capital Budgeting Decisions - Answers PDF

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    RylleMatthanCordero
    Balanced scorecards contain factors important to business success divided into four categories: financial, customer, learning/growth, and internal operations. The document then provides examples of factors and identifies their proper classification, such as earnings per share being financial, levels of inventories held being internal operations, and number of patents held being learning/growth. It confirms statements about balanced scorecards measuring both financial and non-financial measures across these four perspectives.

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    12.capital Budgeting Decisions - Answers PDF

    Uploaded by

    RylleMatthanCordero
    2K views3 pages
    Balanced scorecards contain factors important to business success divided into four categories: financial, customer, learning/growth, and internal operations. The document then provides examples of factors and identifies their proper classification, such as earnings per share being financial, levels of inventories held being internal operations, and number of patents held being learning/growth. It confirms statements about balanced scorecards measuring both financial and non-financial measures across these four perspectives.

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    Balanced scorecards contain factors important to business success divided into four categories: financial, customer, learning/growth, and internal operations. The document then provides examples of factors and identifies their proper classification, such as earnings per share being financial, levels of inventories held being internal operations, and number of patents held being learning/growth. It confirms statements about balanced scorecards measuring both financial and non-financial measures across these four perspectives.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views3 pages

    12.capital Budgeting Decisions - Answers PDF

    Uploaded by

    RylleMatthanCordero
    Balanced scorecards contain factors important to business success divided into four categories: financial, customer, learning/growth, and internal operations. The document then provides examples of factors and identifies their proper classification, such as earnings per share being financial, levels of inventories held being internal operations, and number of patents held being learning/growth. It confirms statements about balanced scorecards measuring both financial and non-financial measures across these four perspectives.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Balanced scorecards contain a number of factors that are important to the success of a business.

    These factors are often divided into four categories: financial, customer, learning and growth, and
    internal operations.

    Determine the proper classification for each of the following factors:

    Manufacturing cycle efficiency


    b. Internal Operations

    When income taxes are considered in capital budgeting, the cash flows related to a company's
    advertising expense would be correctly figured by taking the cash paid for advertising and subtracting
    the result of multiplying [advertising expense x (1 - tax rate)].

    True

    Balanced scorecards contain a number of factors that are important to the success of a business.

    These factors are often divided into four categories: financial, customer, learning and growth, and
    internal operations.

    Determine the proper classification for each of the following factors:

    Levels of inventories held

    c. Internal Operation

    Balanced scorecards contain a number of factors that are important to the success of a business.

    These factors are often divided into four categories: financial, customer, learning and growth, and
    internal operations.

    Determine the proper classification for each of the following factors:

    Earnings per share

    a. Financial

    A company's hurdle rate is generally influenced by whether management uses the net-present-value
    method or the internal-rate-of-return method.

    True

    Balanced scorecards contain a number of factors that are important to the success of a business.

    These factors are often divided into four categories: financial, customer, learning and growth, and
    internal operations.

    Determine the proper classification for each of the following factors:

    Market Share

    d. Customer
    A balanced scorecard looks at an organization from four different perspectives.

    True

    Balanced scorecards contain a number of factors that are important to the success of a business.

    These factors are often divided into four categories: financial, customer, learning and growth, and
    internal operations.

    Determine the proper classification for each of the following factors:

    Number of vendors used

    c. Internal Operation

    Balanced scorecards contain a number of factors that are important to the success of a business.

    These factors are often divided into four categories: financial, customer, learning and growth, and
    internal operations.

    Determine the proper classification for each of the following factors:

    Number of patents held

    a. Learning and Growth

    The present value of a given future cash flow will increase as the discount rate decreases.

    False

    If improvement in a performance measure on a balanced scorecard should lead to improvement in


    another performance measure, but does not, then employees must work harder.

    False

    An increasingly popular approach that integrates financial and customer performance measures with
    measures in the areas of internal operations and learning and growth is known as:

    a. the balanced scorecard.

    The typical balanced scorecard is best described as containing both financial and nonfinancial
    performance measures.

    True

    Capital budgeting tends to focus primarily on:

    d. programs and projects.

    When using a balanced scorecard, a company's market share is typically classified as an element of the
    firm's:

    c. customer performance measures.


    An increase in the expected salvage value at the end of a capital budgeting project will have no effect on
    the internal rate of return for that project.

    False

    Which of the following would not involve a capital-budgeting analysis?

    b. The adoption of a new cost driver for overhead application.

    When cash flows are uneven and vary from year to year, the internal rate of return method is easier to
    use than the net present value method.

    False

    Capital-budgeting decisions primarily involve:

    c. long-term decisions.

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