University study material for Accounting, Finance & Control in the Management Engineering degree programme at Politecnico di Milano. The document covers: ACCOUNTING, FINANCE AND CONTROL MULTIPLE CHOICE TEST (individual assignment) Call 4th September 2019 1. Which one of the following sentences on “productivity indicators” is TRUE? (2 Points) A. When outputs are diversified and not homogeneous, output indicators should be built
University study material for Accounting, Finance & Control in the Management Engineering degree programme at Politecnico di Milano. The document covers: ACCOUNTING, FINANCE AND CONTROL MULTIPLE CHOICE TEST (individual assignment) Call 4th September 2019 1. Which one of the following sentences on “productivity indicators” is TRUE? (2 Points) A. When outputs are diversified and not homogeneous, output indicators should be built
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ACCOUNTING, FINANCE AND CONTROL MULTIPLE CHOICE TEST (individual assignment) Call 4th September 2019 1. Which one of the following sentences on “productivity indicators” is TRUE? (2 Points) A. When outputs are diversified and not homogeneous, output indicators should be built upon physical quantities weighted through physical parameters B. Since they are ratio indicators, they are always independent from the variation of inputs mix C. When they are properly connected to the operationalization of a company’s strategic goals, they can be included in the enterprise’s Balanced Scorecards D. Since they are ratios, they are independent from the metrics used to measure input s and outputs 2. During the last interim meeting, the CFO of Company A presented the rolling forecast document and pinpointed an increase of invested capital of 5% compared to the figure previously budgeted for the year 2019. You know that figures budgeted at the beginning of the year were as follows: • ROA (Return on Total Assets) = 3.15% • ROE = 2.50% • Invested Capital = 470 mln € • WACC = 4.00% • Third Part Liabilities = 200 mln € • Financial Leverage (Considering Third Part Liabilities) = 0.50 • R&D cost that can be capitalized = 20 mln € All the rest being equal, but the forecasted increase in invested capital, based on the available data, it is true that: (4 Points) A. Due to the increase in invested capital, Residual Income in 2019 will decrease of 5% points as well, compared to the budget drafted at the beginning of the year B. Due to the increase in invested capital, Residual Income in 2019 will increase of 5% points compared to the budget drafted at the beginning of the year C. Based on the new available information Residual Income in 2019 will be negative and equal to -0,84 mln € D. Based on…
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