Question 1

What is the company's market share variance?

Accepted Answer

A) $1,050 favorable. 
B) $1,181 favorable. 
C) $1,200 favorable. 
D) $1,350 favorable. 
E) $2,400 favorablE. 
A) $1,050 favorable. 
B) $1,181 favorable. 
C) $1,200 favorable. 
D) $1,350 favorable. 
E) $2,400 favorablE.

Question 2

The sales volume variance is:

Accepted Answer

A) Further divided into separate sales quantity and sales mix variances. 
B) Further divided into separate revenue and quantity variances. 
C) Not further divided. 
D) Further divided into separate flexible budget and sales volume variances. 
E) Further divided into separate variable and fixed variances. 
A) Further divided into separate sales quantity and sales mix variances. 
B) Further divided into separate revenue and quantity variances. 
C) Not further divided. 
D) Further divided into separate flexible budget and sales volume variances. 
E) Further divided into separate variable and fixed variances.

Question 3

The partial operational productivity of Material A in 2012 is:

Accepted Answer

A) 0.28. 
B) 0.33. 
C) 3.00. 
D) 3.33. 
E) 3.60. 
A) 0.28. 
B) 0.33. 
C) 3.00. 
D) 3.33. 
E) 3.60.

Question 4

A selling price variance is:

Accepted Answer

A) Further divided into separate sales quantity and sales mix variances. 
B) Further divided into separate revenue and quantity variances. 
C) Not further divided. 
D) Further divided into separate flexible budget and sales volume variances. 
E) Further divided into separate variable and fixed variances. 
A) Further divided into separate sales quantity and sales mix variances. 
B) Further divided into separate revenue and quantity variances. 
C) Not further divided. 
D) Further divided into separate flexible budget and sales volume variances. 
E) Further divided into separate variable and fixed variances.

Question 5

In 2012, the partial financial productivity of Material A is:

Accepted Answer

A) 0.28. 
B) 0.33. 
C) 3.00. 
D) 3.33. 
E) 3.60. 
A) 0.28. 
B) 0.33. 
C) 3.00. 
D) 3.33. 
E) 3.60.

Question 6

If products AR-10 and ZR-7 are substitutes for each other, a sales mix and sales volume variation for the combined products can be calculated. If this combination is calculated, the net effect on profit of the change in the unit sales mix is: (Round intermediate calculations to five significant digits, and your final answer to the nearest whole dollar amount.)

Accepted Answer

A) $480 favorable. 
B) $700 favorable. 
C) $560 favorable. 
D) $940 favorable. 
E) $1,960 favorablE. 
A) $480 favorable. 
B) $700 favorable. 
C) $560 favorable. 
D) $940 favorable. 
E) $1,960 favorablE.

Question 7

Weighted-average budgeted contribution margin per unit is:

Accepted Answer

A) Actual total contribution margin ÷ actual total units. 
B) Actual total contribution margin ÷ budgeted total units. 
C) Budgeted total contribution margin ÷ actual total units. 
D) Budgeted total contribution margin ÷ budgeted total units. 
E) Sum of budgeted contribution margin per unit of all products ÷ number of products. 
A) Actual total contribution margin ÷ actual total units. 
B) Actual total contribution margin ÷ budgeted total units. 
C) Budgeted total contribution margin ÷ actual total units. 
D) Budgeted total contribution margin ÷ budgeted total units. 
E) Sum of budgeted contribution margin per unit of all products ÷ number of products.

Question 8

The selling price variance for Product X is:

Accepted Answer

A) $0. 
B) $30,000 unfavorable. 
C) $30,000 favorable. 
D) $15,000 favorable. 
E) $75,000 unfavorablE.Actual price: $360,000/3,000 = $120 
A) $0. 
B) $30,000 unfavorable. 
C) $30,000 favorable. 
D) $15,000 favorable. 
E) $75,000 unfavorablE.Actual price: $360,000/3,000 = $120

Question 9

The net effect of AR-10's sales volume variance on profit is:

Accepted Answer

A) $720 favorable. 
B) $817 favorable. 
C) $1,060 favorable. 
D) $1,160 favorable. 
E) $1,440 favorablE. 
A) $720 favorable. 
B) $817 favorable. 
C) $1,060 favorable. 
D) $1,160 favorable. 
E) $1,440 favorablE.

Question 10

If fixed costs are budgeted for $500,000 and are actually $500,000, what is the difference between budgeted and actual operating income?

Accepted Answer

A) $3,200 favorable. 
B) $5,800 favorable. 
C) $122,500 unfavorable. 
D) $65,550 favorable. 
E) $23,455 favorablE.Budgeted total contribution: (22,500 x $4.8) + (90,000 x $13) = $1,278,000 
A) $3,200 favorable. 
B) $5,800 favorable. 
C) $122,500 unfavorable. 
D) $65,550 favorable. 
E) $23,455 favorablE.Budgeted total contribution: (22,500 x $4.8) + (90,000 x $13) = $1,278,000

Question 11

The following information is for the Wetherby Company.
   1. Compute the partial operational productivity measures for 2012 and 2013.
2. Compute the partial financial productivity ratios for 2012 and 2013.
3. Separate the changes of the partial financial productivity ratios from 2012 to 2013 into productivity change, input price change, and output change.

Accepted Answer

Answer may vary
Feedback:
1. Materials:

Question 12

Taylor, Inc. has the following information for the two most recent years of operations.
   Required:
Determine the following:
1. Selling price variance in sales dollars.
2. Sales volume variance in contribution.
3. Materials usage variance.
4. Materials price variance.
5. Labor usage variance.
6. Labor rate variance.

Accepted Answer

Answer may

Question 13

A firm manufactures 5,000 umbrellas per year. The umbrellas cost $25,000 to manufacture. The firm has an annual overhead cost of $5,000. What is the total productivity of manufacturing umbrellas?

Accepted Answer

A) 0.20 umbrellas/dollar 
B) 0.20 dollars/umbrella 
C) 5 umbrellas/dollar 
D) 0.17 dollars/umbrella 
A) 0.20 umbrellas/dollar 
B) 0.20 dollars/umbrella 
C) 5 umbrellas/dollar 
D) 0.17 dollars/umbrella

Question 14

Showtime is a group of aspiring musicians and actors who perform in theaters and dinner clubs. It has a matinee and evening show. These operating data pertain to the month of July:
   Required:
1. Calculate for each type of show and the total:
a. Sales mix variances.
b. Sales quantity variances.
c. Sales volume variances.
2. What strategic implications can you draw from the variances?

Accepted Answer

Answer may vary
Feedback:
1. @#IMG-DLM& 2.
The gro

Question 15

The contribution margin sales volume variance for Product X is:

Accepted Answer

A) $26,000 unfavorable. 
B) $26,000 favorable. 
C) $30,000 unfavorable. 
D) $40,000 unfavorable. 
E) $65,000 favorablE.Budgeted units: $260,000/$130 = 2,000 
A) $26,000 unfavorable. 
B) $26,000 favorable. 
C) $30,000 unfavorable. 
D) $40,000 unfavorable. 
E) $65,000 favorablE.Budgeted units: $260,000/$130 = 2,000

Question 16

Triple Delight is a food stand located on a busy corner in the local business district. On average it sells three cheeseburgers and one fishwich for every four hamburgers sold. The following data were culled from its operation for 2013:
   The estimated total volume for the food stands in the region was 2,500,000 units. Consistent good weather pushed the total volume for the year to 4,000,000.
Required:
Determine the following:
1. Budgeted weighted-average contribution margin.
2. Budgeted and actual market shares.
3. Budget and actual total units sold.
4. Sales quantity variances for fishwich.
5. Budgeted contribution margin of each product.
6. Actual sales mix of each product.
7. Budget and actual units sold for each product.

Accepted Answer

Answer may

Question 17

The firm's market size variance for the period is:

Accepted Answer

A) $16,000 favorable. 
B) $26,000 favorable. 
C) $61,200 favorable. 
D) $30,600 unfavorable. 
E) $91,800 unfavorablE.Budgeted market share = 13,000/130,000 = 10% 
A) $16,000 favorable. 
B) $26,000 favorable. 
C) $61,200 favorable. 
D) $30,600 unfavorable. 
E) $91,800 unfavorablE.Budgeted market share = 13,000/130,000 = 10%

Question 18

The firm's total sales quantity variance for the period is:

Accepted Answer

A) $16,000 favorable. 
B) $34,800 favorable. 
C) $24,660 favorable. 
D) $30,600 favorable. 
E) $66,375 favorablE.$7,400 + $23,200 = $30,600 unfavorable 
A) $16,000 favorable. 
B) $34,800 favorable. 
C) $24,660 favorable. 
D) $30,600 favorable. 
E) $66,375 favorablE.$7,400 + $23,200 = $30,600 unfavorable

Question 19

What is the sales quantity variance for Spiders?

Accepted Answer

A) $0 
B) $1,500 favorable. 
C) $9,843 favorable. 
D) $11,250 favorable. 
E) $15,468 favorablE.6900 + 3100 = 10,000 
A) $0 
B) $1,500 favorable. 
C) $9,843 favorable. 
D) $11,250 favorable. 
E) $15,468 favorablE.6900 + 3100 = 10,000

Question 20

When the mix of products sold shifts toward the high contribution margin product, the total:

Accepted Answer

A) Sales mix variance is favorable. 
B) Sales volume variance is favorable. 
C) Market mix variance is favorable. 
D) Sales mix variance is unfavorable. 
E) Sales price variance is favorable. 
A) Sales mix variance is favorable. 
B) Sales volume variance is favorable. 
C) Market mix variance is favorable. 
D) Sales mix variance is unfavorable. 
E) Sales price variance is favorable.

What is the company's market share variance?

The sales volume variance is:

The partial operational productivity of Material A in 2012 is:

A selling price variance is:

In 2012, the partial financial productivity of Material A is:

Weighted-average budgeted contribution margin per unit is:

The selling price variance for Product X is:

The net effect of AR-10's sales volume variance on profit is:

If fixed costs are budgeted for $500,000 and are actually $500,000, what is the difference between budgeted and actual operating income?

A firm manufactures 5,000 umbrellas per year. The umbrellas cost $25,000 to manufacture. The firm has an annual overhead cost of $5,000. What is the total productivity of manufacturing umbrellas?

The contribution margin sales volume variance for Product X is:

The firm's market size variance for the period is:

The firm's total sales quantity variance for the period is:

What is the sales quantity variance for Spiders?

When the mix of products sold shifts toward the high contribution margin product, the total:

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

What is the company's market share variance?

The sales volume variance is:

The partial operational productivity of Material A in 2012 is:

A selling price variance is:

In 2012, the partial financial productivity of Material A is:

Weighted-average budgeted contribution margin per unit is:

The selling price variance for Product X is:

The net effect of AR-10's sales volume variance on profit is:

If fixed costs are budgeted for $500,000 and are actually $500,000, what is the difference between budgeted and actual operating income?

A firm manufactures 5,000 umbrellas per year. The umbrellas cost $25,000 to manufacture. The firm has an annual overhead cost of $5,000. What is the total productivity of manufacturing umbrellas?

The contribution margin sales volume variance for Product X is:

The firm's market size variance for the period is:

The firm's total sales quantity variance for the period is:

What is the sales quantity variance for Spiders?

When the mix of products sold shifts toward the high contribution margin product, the total:

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