Question 1

Flexible budgets are budgets that summarize cost and revenue information for a single volume level.

Accepted Answer

A) True 
 B)False

Question 2

Employee satisfaction would be an example of measuring which perspective?

Accepted Answer

A) Financial 
B) Customer 
C) Learning and growth 
D) Internal business 
A) Financial 
B) Customer 
C) Learning and growth 
D) Internal business

Question 3

The number of new products developed would be an example of measuring which perspective?

Accepted Answer

A) Financial 
B) Customer 
C) Learning and growth 
D) Internal business 
A) Financial 
B) Customer 
C) Learning and growth 
D) Internal business

Question 4

A performance report for a ________ compares only actual revenues and budgeted revenues.

Accepted Answer

A) revenue center 
B) cost center 
C) investment center 
D) All of the above 
A) revenue center 
B) cost center 
C) investment center 
D) All of the above

Question 5

The ________ perspective from the balanced scorecard helps managers answer the question, "How do we look to shareholders?"

Accepted Answer

A) financial 
B) internal business 
C) customer 
D) learning and growth 
A) financial 
B) internal business 
C) customer 
D) learning and growth

Question 6

Eagle Company has a sales margin of 15%, a target rate of return of 14%, and capital turnover of 2.5. Its operating income is $87,000. The sales in dollars for Eagle Company would be closest to

Accepted Answer

A) $580,000. 
B) $34,800. 
C) $13,050. 
D) $217,500. 
A) $580,000. 
B) $34,800. 
C) $13,050. 
D) $217,500.

Question 7

Thomas Corporation sells a unit of its product for $12.00, resulting in a contribution margin of $7.00 per unit. Fixed costs are budgeted at $50,000 per quarter for volumes up to 12,000 units and $80,000 for volumes exceeding 12,000 units.
Prepare the flexible budget for the next quarter for volume levels of 11,000, 13,000, and 16,000 units.

Accepted Answer

The answer of Thomas Corporation sells a unit of its...

Question 8

In a flexible budget, total fixed costs do not change as production volume changes.

Accepted Answer

A) True 
 B)False

Question 9

Pendant Publishing reported the following results for its Textbook Division:   Pendant's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.
What is the Textbook Division's Residual Income (RI)?

Accepted Answer

A) $275,000 
B) $276,000 
C) $330,000 
D) $110,000 
A) $275,000 
B) $276,000 
C) $330,000 
D) $110,000

Question 10

Elaina Company had the following financial results for last month. What type of responsibility center do these results reflect?

Accepted Answer

A) Profit center 
B) Revenue center 
C) Investment center 
D) Cost center 
A) Profit center 
B) Revenue center 
C) Investment center 
D) Cost center

Question 11

Management by ________ is the practice of directing executive attention to important deviations from budgeted amounts.

Accepted Answer

A) control 
B) objective 
C) exception 
D) analysis 
A) control 
B) objective 
C) exception 
D) analysis

Question 12

A manager can increase return on investment (ROI)by doing which of the following?

Accepted Answer

A) Increase operating expenses 
B) Increase operating assets 
C) Decrease sales 
D) Decrease operating expenses 
A) Increase operating expenses 
B) Increase operating assets 
C) Decrease sales 
D) Decrease operating expenses

Question 13

Cash flows from operations and gross margin growth would be examples of the

Accepted Answer

A) customer perspective. 
B) financial perspective. 
C) internal business perspective. 
D) learning and growth perspective. 
A) customer perspective. 
B) financial perspective. 
C) internal business perspective. 
D) learning and growth perspective.

Question 14

The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 7%. Management calculated a weighted-average cost of capital (WACC)of 5%. Allied's corporate tax rate is 30%.   What is the division's Return on Investment (ROI)?

Accepted Answer

A) 25.00% 
B) 11.67% 
C) 40.00% 
D) 46.67% 
A) 25.00% 
B) 11.67% 
C) 40.00% 
D) 46.67%

Question 15

All favorable variances are investigated when using management by exception.

Accepted Answer

A) True 
 B)False

Question 16

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows:   What is The Portland Porcelain Works Coffee Mug Division residual income?

Accepted Answer

A) $396,000 
B) $71,875 
C) $356,500 
D) $342,125 
A) $396,000 
B) $71,875 
C) $356,500 
D) $342,125

Question 17

A flexible budget is a budget prepared for multiple volume levels.

Accepted Answer

A) True 
 B)False

Question 18

The ________ is a budget based on multiple levels of projected sales or production.

Accepted Answer

A) standard budget 
B) flexible budget 
C) static budget 
D) fixed budget 
A) standard budget 
B) flexible budget 
C) static budget 
D) fixed budget

Question 19

Golden Corporation has operating income of $336,000, a sales margin of 16%, and capital turnover of 3.0. The return on investment (ROI)for Golden Corporation would be closest to

Accepted Answer

A) 5%. 
B) 48%. 
C) 2%. 
D) 160%. 
A) 5%. 
B) 48%. 
C) 2%. 
D) 160%.

Question 20

Return on Investment (ROI)is defined as operating income divided by current assets.

Accepted Answer

A) True 
 B)False

Flexible budgets are budgets that summarize cost and revenue information for a single volume level.

Employee satisfaction would be an example of measuring which perspective?

The number of new products developed would be an example of measuring which perspective?

A performance report for a ________ compares only actual revenues and budgeted revenues.

The ________ perspective from the balanced scorecard helps managers answer the question, "How do we look to shareholders?"

Eagle Company has a sales margin of 15%, a target rate of return of 14%, and capital turnover of 2.5. Its operating income is $87,000. The sales in dollars for Eagle Company would be closest to

In a flexible budget, total fixed costs do not change as production volume changes.

Pendant Publishing reported the following results for its Textbook Division: Pendant's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%. What is the Textbook Division's Residual Income (RI)?

Elaina Company had the following financial results for last month. What type of responsibility center do these results reflect?

Management by ________ is the practice of directing executive attention to important deviations from budgeted amounts.

A manager can increase return on investment (ROI)by doing which of the following?

Cash flows from operations and gross margin growth would be examples of the

All favorable variances are investigated when using management by exception.

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division residual income?

A flexible budget is a budget prepared for multiple volume levels.

The ________ is a budget based on multiple levels of projected sales or production.

Golden Corporation has operating income of $336,000, a sales margin of 16%, and capital turnover of 3.0. The return on investment (ROI)for Golden Corporation would be closest to

Return on Investment (ROI)is defined as operating income divided by current assets.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 10: Performance Evaluation

Flexible budgets are budgets that summarize cost and revenue information for a single volume level.

Employee satisfaction would be an example of measuring which perspective?

The number of new products developed would be an example of measuring which perspective?

A performance report for a ________ compares only actual revenues and budgeted revenues.

The ________ perspective from the balanced scorecard helps managers answer the question, "How do we look to shareholders?"

Eagle Company has a sales margin of 15%, a target rate of return of 14%, and capital turnover of 2.5. Its operating income is $87,000. The sales in dollars for Eagle Company would be closest to

In a flexible budget, total fixed costs do not change as production volume changes.

Pendant Publishing reported the following results for its Textbook Division: Pendant's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%. What is the Textbook Division's Residual Income (RI)?

Elaina Company had the following financial results for last month. What type of responsibility center do these results reflect?

Management by ________ is the practice of directing executive attention to important deviations from budgeted amounts.

A manager can increase return on investment (ROI)by doing which of the following?

Cash flows from operations and gross margin growth would be examples of the

All favorable variances are investigated when using management by exception.

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division residual income?

A flexible budget is a budget prepared for multiple volume levels.

The ________ is a budget based on multiple levels of projected sales or production.

Golden Corporation has operating income of $336,000, a sales margin of 16%, and capital turnover of 3.0. The return on investment (ROI)for Golden Corporation would be closest to

Return on Investment (ROI)is defined as operating income divided by current assets.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters