Question 1

The net effect of ZR-7's selling price variance on profit is:

Accepted Answer

A) $240 favorable. 
B) $400 unfavorable. 
C) $420 unfavorable. 
D) $560 favorable. 
E) $800 unfavorablE. 
A) $240 favorable. 
B) $400 unfavorable. 
C) $420 unfavorable. 
D) $560 favorable. 
E) $800 unfavorablE. D

Question 2

What is the firm's total sales quantity variance?

Accepted Answer

A) $7,200 favorable. 
B) $17,760 favorable. 
C) $22,000 favorable. 
D) $24,840 favorable. 
E) $38,560 favorablE. 
A) $7,200 favorable. 
B) $17,760 favorable. 
C) $22,000 favorable. 
D) $24,840 favorable. 
E) $38,560 favorablE. C

Question 3

Which one of the following measures the relationship between the output attained and the total input costs of all the required input resources?

Accepted Answer

A) Partial financial productivity. 
B) Total productivity. 
C) Partial operational productivity. 
D) Total financial productivity. 
E) Partial productivity. 
A) Partial financial productivity. 
B) Total productivity. 
C) Partial operational productivity. 
D) Total financial productivity. 
E) Partial productivity. B

Question 4

What is ET's contribution margin sales volume variance?

Accepted Answer

A) $15,360 favorable. 
B) $15,360 unfavorable. 
C) $24,960 favorable. 
D) $32,000 unfavorable. 
E) $16,640 unfavorablE. 
A) $15,360 favorable. 
B) $15,360 unfavorable. 
C) $24,960 favorable. 
D) $32,000 unfavorable. 
E) $16,640 unfavorablE.

Question 5

The weighted-average budgeted contribution margin per unit is:

Accepted Answer

A) $19.95. 
B) $35.50. 
C) $30.60. 
D) $40.00. 
E) $77.50. 
A) $19.95. 
B) $35.50. 
C) $30.60. 
D) $40.00. 
E) $77.50.

Question 6

Sales volume variances can have significant implications for strategic management. An unfavorable sales volume variance may indicate that:

Accepted Answer

A) The industry is in decline. 
B) The company needs a new competitive strategy. 
C) Product mix changes are favorable but quantity variances are unfavorable. 
D) Labor productivity needs to be addressed 
A) The industry is in decline. 
B) The company needs a new competitive strategy. 
C) Product mix changes are favorable but quantity variances are unfavorable. 
D) Labor productivity needs to be addressed

Question 7

(Budgeted sales mix- actual sales mix) x (total quantity sold) x (budgeted contribution margin per unit of the product) equals:

Accepted Answer

A) Sales efficiency variance. 
B) Sales quantity variance. 
C) Sales price variance. 
D) Sales mix variance. 
E) Sales volume variance. 
A) Sales efficiency variance. 
B) Sales quantity variance. 
C) Sales price variance. 
D) Sales mix variance. 
E) Sales volume variance.

Question 8

Decreasing selling prices in order to secure higher sales volumes or market shares:

Accepted Answer

A) Will always generate higher sales volumes and market shares. 
B) Can have a negative impact on a firm's profitability. 
C) Should not usually affect profitability. 
D) Should not usually affect contribution margins. 
E) Should not usually affect sales mix. 
A) Will always generate higher sales volumes and market shares. 
B) Can have a negative impact on a firm's profitability. 
C) Should not usually affect profitability. 
D) Should not usually affect contribution margins. 
E) Should not usually affect sales mix.

Question 9

The sales quantity variance for Product Y is:

Accepted Answer

A) $6,465 favorable. 
B) $6,750 favorable. 
C) $33,250 favorable. 
D) $23,200 unfavorable. 
E) $78,000 favorablE.Total units: budget = 13,000; actual units = 12,000 
A) $6,465 favorable. 
B) $6,750 favorable. 
C) $33,250 favorable. 
D) $23,200 unfavorable. 
E) $78,000 favorablE.Total units: budget = 13,000; actual units = 12,000

Question 10

The selling price variance for Product X is:

Accepted Answer

A) $7,500 favorable 
B) $26,000 unfavorable. 
C) $30,000 unfavorable. 
D) $40,000 favorable. 
E) $40,000 unfavorablE.Actual price: $202,500/1,500 = $135 
A) $7,500 favorable 
B) $26,000 unfavorable. 
C) $30,000 unfavorable. 
D) $40,000 favorable. 
E) $40,000 unfavorablE.Actual price: $202,500/1,500 = $135

Question 11

Zeller Company had two products named Q and R. The firm had the following budget for the period just ended:
   Required:
(A) Calculate the contribution margin sales volume variance for Product Q.
(B) Calculate the contribution margin sales volume variance for Product R.
(C) Calculate the sales mix variance for Product Q.
(D) Calculate the sales quantity variance for Product Q.
(E) Calculate the sales mix variance for Product R.
(F) Calculate the sales quantity variance for Product R.

Accepted Answer

Answer may vary
Feed

Question 12

The market size variance arises because of changes:

Accepted Answer

A) In the total market size of the firm's product. 
B) In the firm's proportion in the total market. 
C) In the number of firms in the market. 
D) In the firm's total sales volume. 
A) In the total market size of the firm's product. 
B) In the firm's proportion in the total market. 
C) In the number of firms in the market. 
D) In the firm's total sales volume.

Question 13

The two major contributing factors to a sales volume variance are deviations in:

Accepted Answer

A) Market size and market share. 
B) Market size and sales quantity. 
C) Sales mix and selling price. 
D) Sales mix and sales quantity. 
E) Sales price and sales quantity. 
A) Market size and market share. 
B) Market size and sales quantity. 
C) Sales mix and selling price. 
D) Sales mix and sales quantity. 
E) Sales price and sales quantity.

Question 14

The partial operational productivity ratio of DTV-12 in 2013 is:

Accepted Answer

A) 0.63 per unit. 
B) 0.73 per unit. 
C) 1.92 per unit. 
D) 3.00 per unit. 
E) 3.33 per unit. 
A) 0.63 per unit. 
B) 0.73 per unit. 
C) 1.92 per unit. 
D) 3.00 per unit. 
E) 3.33 per unit.

Question 15

Lau & Lau, Ltd., of Hong Kong manufacture two products for the same market. Its budget and operating results for the year just completed follow:
   At the time of budget preparation, the budgeting department and sales department agreed that the industry volume for the year would likely be 1,500,000 units. Actual industry volume turned out to be 2,000,000 units.
Required:
(you may round fractions to three decimal places)
1. What is the average budgeted contribution margin per unit?
2. What is the sales volume contribution margin variance for each product?
3. What is the sales mix contribution margin variance for each product?
4. What is the sales quantity contribution margin variance for each product?
5. What is the market size contribution margin variance?
6. What is the market share contribution margin variance?
7. What is the total flexible budget contribution margin variance?
8. What is the total variable cost price variance if the total contribution margin price variance is $50,000 favorable?
9. What is the total variable cost efficiency variance if the total contribution margin price variance is $50,000 favorable?

Accepted Answer

Answer may vary
Feedback:
1. @#IMG-DLM& 2. @#IMG-DLM& 3. @#IMG-DLM& 4.

Question 16

In 2013, the partial financial productivity of Material A is:

Accepted Answer

A) .030. 
B) .045. 
C) 2.22. 
D) 3.33. 
E) 5.00. 
A) .030. 
B) .045. 
C) 2.22. 
D) 3.33. 
E) 5.00.

Question 17

Efforts to improve productivity should be focused only on:

Accepted Answer

A) Quality. 
B) Non-value-added activities. 
C) Value-added activities. 
D) Inputs. 
E) Outputs. 
A) Quality. 
B) Non-value-added activities. 
C) Value-added activities. 
D) Inputs. 
E) Outputs.

Question 18

The contribution margin sales volume variance for Product Y is:

Accepted Answer

A) $7,500 favorable 
B) $26,000 favorable. 
C) $42,500 unfavorable. 
D) $52,000 unfavorable. 
E) $75,000 favorablE.Budgeted units: $360,000/$60 = 6,000 
A) $7,500 favorable 
B) $26,000 favorable. 
C) $42,500 unfavorable. 
D) $52,000 unfavorable. 
E) $75,000 favorablE.Budgeted units: $360,000/$60 = 6,000

Question 19

The effect of the sales volume variance on November's contribution margin is:

Accepted Answer

A) $15,000 unfavorable. 
B) $18,000 unfavorable. 
C) $20,000 unfavorable. 
D) $30,000 unfavorable. 
E) $65,000 unfavorablE. 
A) $15,000 unfavorable. 
B) $18,000 unfavorable. 
C) $20,000 unfavorable. 
D) $30,000 unfavorable. 
E) $65,000 unfavorablE.

Question 20

The Tempest Company has the following information for the current year.
   The industry budget is 2 million units and the actual result for the industry is 2.5 million units.
Required:
1. Compute the contribution margin sales mix variance for product X.
2. Compute the contribution margin sales mix variance for product Y.
3. Compute the contribution margin sales volume variance for product X.
4. Compute the contribution margin sales volume variance for product Y.
5. Compute the contribution margin sales quantity variance for product X.
6. Compute the contribution margin sales quantity variance for product Y.
7. Compute the market share variance for Tempest.
8. Computer the market size variance for Tempest.

Accepted Answer

Answer may vary
Feedback:
1. Compute the

The net effect of ZR-7's selling price variance on profit is:

What is the firm's total sales quantity variance?

Which one of the following measures the relationship between the output attained and the total input costs of all the required input resources?

What is ET's contribution margin sales volume variance?

The weighted-average budgeted contribution margin per unit is:

Sales volume variances can have significant implications for strategic management. An unfavorable sales volume variance may indicate that:

(Budgeted sales mix- actual sales mix) x (total quantity sold) x (budgeted contribution margin per unit of the product) equals:

Decreasing selling prices in order to secure higher sales volumes or market shares:

The sales quantity variance for Product Y is:

The selling price variance for Product X is:

The market size variance arises because of changes:

The two major contributing factors to a sales volume variance are deviations in:

The partial operational productivity ratio of DTV-12 in 2013 is:

In 2013, the partial financial productivity of Material A is:

Efforts to improve productivity should be focused only on:

The contribution margin sales volume variance for Product Y is:

The effect of the sales volume variance on November's contribution margin is:

Cost Management and Strategy

Implementing Strategy: the Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

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Exam 16: Operational Performance Measurement: Further Analysis of Productivity and Sales

The net effect of ZR-7's selling price variance on profit is:

What is the firm's total sales quantity variance?

Which one of the following measures the relationship between the output attained and the total input costs of all the required input resources?

What is ET's contribution margin sales volume variance?

The weighted-average budgeted contribution margin per unit is:

Sales volume variances can have significant implications for strategic management. An unfavorable sales volume variance may indicate that:

(Budgeted sales mix- actual sales mix) x (total quantity sold) x (budgeted contribution margin per unit of the product) equals:

Decreasing selling prices in order to secure higher sales volumes or market shares:

The sales quantity variance for Product Y is:

The selling price variance for Product X is:

The market size variance arises because of changes:

The two major contributing factors to a sales volume variance are deviations in:

The partial operational productivity ratio of DTV-12 in 2013 is:

In 2013, the partial financial productivity of Material A is:

Efforts to improve productivity should be focused only on:

The contribution margin sales volume variance for Product Y is:

The effect of the sales volume variance on November's contribution margin is:

Cost Management and Strategy

Implementing Strategy: the Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters