Test

Question 1

Regression Analysis: The Multiple R is the first stat. It explains?

Answer 1

xx (.98) Strong Positive Correlation

Question 2

Regression Analysis: The R Squared is the second stat. It explains?

Answer 2

xx (0.97) of variance in costs explained by formula

Question 3

What are disadvantages of ROI?

Answer 3

Asset measurement
Classifying as expense or liability
Leasing instead of purchasing

Question 4

What are disadvantages of EVA?

Answer 4

A single measure. It does not capture non-financial info
Adjustments can involve manipulation
Calculating department performance misses the measure of firms synergies

Question 5

How did Johnson and Kaplan view the history of Management Accounting?

Answer 5

In an organisation context. 
It was a technique for making:
Organisations more efficient 
Facilitated in the Growth of Organisations
To aid internal control

Question 6

Prior to the 19th Century what occured?

Answer 6

J&K - The market place provided information needed to set prices for labour costs and measure efficiency of the production process and control worker behaviour

Question 7

What occurred mid 19th Century?

Answer 7

J&K - Growth of factors and urban retail companies. Development of communication. Internal production processes. Other measures developed

Question 8

What occurred in the late 19th Century?

Answer 8

J&K - Large economies of scale. Relatively homogeneous products. Little attention paid to allocation of overheads.