Question 1

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 2

Perry Corp.has the following data for the current fiscal year:  
The total sales mix variance for both products is:

Accepted Answer

A) $65,000 unfavorable. 
B) $132,000 unfavorable. 
C) $245,000 unfavorable. 
D) $312,000 unfavorable. 
E) $343,000 unfavorable. 
A) $65,000 unfavorable. 
B) $132,000 unfavorable. 
C) $245,000 unfavorable. 
D) $312,000 unfavorable. 
E) $343,000 unfavorable.

Question 3

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2011,the partial financial productivity of direct labor is: (round all calculations to two significant digits)

Accepted Answer

A) 0.20. 
B) 0.25. 
C) 0.40. 
D) 4.00. 
E) 5.00. 
A) 0.20. 
B) 0.25. 
C) 0.40. 
D) 4.00. 
E) 5.00.

Question 4

Wheat Inc.has an exclusive contract with an exporter.Two brands of wheat are imported,labeled AB and CD.The following data are provided for the current fiscal year:  
The total market was estimated to 40,000 bushels at the time of budget.The actual total market for the year is 32,000 bushels.
What is AB's contribution margin sales volume variance?

Accepted Answer

A) $0 
B) $1,500 unfavorable. 
C) $4,000 favorable. 
D) $7,500 unfavorable. 
E) $10,000 unfavorable. 
A) $0 
B) $1,500 unfavorable. 
C) $4,000 favorable. 
D) $7,500 unfavorable. 
E) $10,000 unfavorable.

Question 5

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters.Two brands of gourmet coffee are imported,Morning Thunder (MT)and Evening Tender (ET).The following data are provided for the current fiscal year:  
The total market was estimated to be 80,000 pounds at the time of budget.The actual total market for the year is 75,000 pounds.
What is the firm's market size variance?

Accepted Answer

A) $10,200 unfavorable. 
B) $11,000 unfavorable. 
C) $12,240 unfavorable. 
D) $13,200 unfavorable. 
E) $22,000 unfavorable. 
A) $10,200 unfavorable. 
B) $11,000 unfavorable. 
C) $12,240 unfavorable. 
D) $13,200 unfavorable. 
E) $22,000 unfavorable.

Question 6

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters.Two brands of gourmet coffee are imported,Morning Thunder (MT)and Evening Tender (ET).The following data are provided for the current fiscal year:  
The total market was estimated to be 80,000 pounds at the time of budget.The actual total market for the year is 75,000 pounds.
What is ET's sales quantity variance?

Accepted Answer

A) $8,000 favorable. 
B) $8,960 favorable. 
C) $12,000 favorable. 
D) $13,440 favorable. 
E) $24,960 favorable. 
A) $8,000 favorable. 
B) $8,960 favorable. 
C) $12,000 favorable. 
D) $13,440 favorable. 
E) $24,960 favorable.

Question 7

Perry Corp.has the following data for the current fiscal year:  
The weighted-average budgeted contribution margin per unit is:

Accepted Answer

A) $5.125. 
B) $6.375. 
C) $6.70. 
D) $6.80. 
E) $7.00. 
A) $5.125. 
B) $6.375. 
C) $6.70. 
D) $6.80. 
E) $7.00.

Question 8

What is the sales volume variance for Spiders?

Accepted Answer

A) $0. 
B) $1,125 favorable. 
C) $1,500 favorable. 
D) $1,650 unfavorable. 
E) $12,375 unfavorable. 
A) $0. 
B) $1,125 favorable. 
C) $1,500 favorable. 
D) $1,650 unfavorable. 
E) $12,375 unfavorable.

Question 9

Jackson,Inc manufactures two products that it sells to the same market.Excerpted below are its budgeted and actual operating results for the year just completed:  
Industry volume was estimated to be 1,875,000 units at the time the budget was prepared.Actual industry volume for the period was 2,440,000 units.Jackson measures variances using contribution margin.The market size variance is:

Accepted Answer

A) $218,450 favorable. 
B) $33,750 favorable. 
C) $221,520 favorable. 
D) $385,104 favorable. 
E) $426,000 favorable. 
A) $218,450 favorable. 
B) $33,750 favorable. 
C) $221,520 favorable. 
D) $385,104 favorable. 
E) $426,000 favorable.

Question 10

(Budgeted contribution margin per unit)x (units sold - units budgeted to be sold)x(budgeted sales mix 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 11

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
The partial direct labor operational productivity in 2010 is: (round all calculations to two significant digits)

Accepted Answer

A) 0.22. 
B) 0.25. 
C) 4.00. 
D) 4.50. 
E) 5.00. 
A) 0.22. 
B) 0.25. 
C) 4.00. 
D) 4.50. 
E) 5.00.

Question 12

Wheat Inc.has an exclusive contract with an exporter.Two brands of wheat are imported,labeled AB and CD.The following data are provided for the current fiscal year:  
The total market was estimated to 40,000 bushels at the time of budget.The actual total market for the year is 32,000 bushels.
What is the firm's total sales mix variance?

Accepted Answer

A) $0. 
B) $500 favorable. 
C) $725 unfavorable. 
D) $3.000 favorable. 
E) $3,000 unfavorable. 
A) $0. 
B) $500 favorable. 
C) $725 unfavorable. 
D) $3.000 favorable. 
E) $3,000 unfavorable.

Question 13

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters.Two brands of gourmet coffee are imported,Morning Thunder (MT)and Evening Tender (ET).The following data are provided for the current fiscal year:  
The total market was estimated to be 80,000 pounds at the time of budget.The actual total market for the year is 75,000 pounds.
What is the total contribution margin sales volume variance?

Accepted Answer

A) $7,600 favorable. 
B) $8,000 unfavorable. 
C) $15,600 favorable. 
D) $16,560 unfavorable. 
E) $24,160 favorable. 
A) $7,600 favorable. 
B) $8,000 unfavorable. 
C) $15,600 favorable. 
D) $16,560 unfavorable. 
E) $24,160 favorable.

Question 14

Taylor,Inc.has the following information for the two most recent years of operations.

Accepted Answer

@#IMG-DLM& Required:Determine the following:(a)Sel

Question 15

A partial operational productivity measure:

Accepted Answer

A) Uses physical units in both the numerator and denominator. 
B) Is harder to understand than a financial partial productivity measure. 
C) Is affected by price changes and other factors. 
D) Is a comprehensive productivity measure. 
E) Has the advantage of considering the effects of both speed and quantity of a resources input on productivity. 
A) Uses physical units in both the numerator and denominator. 
B) Is harder to understand than a financial partial productivity measure. 
C) Is affected by price changes and other factors. 
D) Is a comprehensive productivity measure. 
E) Has the advantage of considering the effects of both speed and quantity of a resources input on productivity.

Question 16

Winston Co.had two products code named X and Y.The firm had the following budget for August:  
On September 1,the following operating results for August were reported:  
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The sales quantity variance for Product X is:

Accepted Answer

A) $45,777 favorable. 
B) $50,750 favorable. 
C) $6,500 favorable. 
D) $47,550 favorable. 
E) $36,250 favorable. 
A) $45,777 favorable. 
B) $50,750 favorable. 
C) $6,500 favorable. 
D) $47,550 favorable. 
E) $36,250 favorable.

Question 17

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2011,the partial direct labor operational productivity is: (round all calculations to two significant digits)

Accepted Answer

A) 0.20. 
B) 0.25. 
C) 0.40. 
D) 4.00. 
E) 5.00. 
A) 0.20. 
B) 0.25. 
C) 0.40. 
D) 4.00. 
E) 5.00.

Question 18

Which one of the following is a productivity measure that focuses only on the relationship between one of the inputs and the output attained?

Accepted Answer

A) Financial productivity. 
B) Total productivity. 
C) Total financial productivity. 
D) Productivity. 
E) Partial productivity. 
A) Financial productivity. 
B) Total productivity. 
C) Total financial productivity. 
D) Productivity. 
E) Partial productivity.

Question 19

Julie Hilger started New Treads to combine fashion and sustainability.The original production of sandals made from recycled plastic has expanded to a complete line of casual footwear.Current sales total over $2 million.Julie hired the firm's first controller early this year,and has asked him to detail suggestions for ways to increase profits.Adrian Warring,the new controller,has compiled a list of recommended changes that focus on quality improvements.New Treads customers expect high quality at a low price,a "value" product.So the company must simultaneously watch costs and quality.After receiving his list of suggestions,Julie calls Adrian to her office and says,"I don't see how improving quality can increase productivity.In fact,it seems to me that efforts to improve quality will slow down production and decrease productivity."
Required: Using specific examples,help Adrian explain to Julie why efforts to improve quality can also boost productivity.How does productivity play a role in the firm's strategy and competitive environment?

Accepted Answer

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Question 20

The Tempest Company has the following information for the current year.

Accepted Answer

@#IMG-DLM& 
The industry budget is 2 million units

A selling price variance is:

Perry Corp.has the following data for the current fiscal year: The total sales mix variance for both products is:

Perry Corp.has the following data for the current fiscal year: The weighted-average budgeted contribution margin per unit is:

What is the sales volume variance for Spiders?

(Budgeted contribution margin per unit)x (units sold - units budgeted to be sold)x(budgeted sales mix of the product)equals:

Taylor,Inc.has the following information for the two most recent years of operations.

A partial operational productivity measure:

Which one of the following is a productivity measure that focuses only on the relationship between one of the inputs and the output attained?

The Tempest Company has the following information for the current year.

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

Profit Planning: Cost-Volume-Profit 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 and 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

Management Compensation, Business Analysis, and Business Valuation

Filters

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

A selling price variance is:

Perry Corp.has the following data for the current fiscal year: The total sales mix variance for both products is:

Perry Corp.has the following data for the current fiscal year: The weighted-average budgeted contribution margin per unit is:

What is the sales volume variance for Spiders?

(Budgeted contribution margin per unit)x (units sold - units budgeted to be sold)x(budgeted sales mix of the product)equals:

Taylor,Inc.has the following information for the two most recent years of operations.

A partial operational productivity measure:

Which one of the following is a productivity measure that focuses only on the relationship between one of the inputs and the output attained?

The Tempest Company has the following information for the current year.

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

Profit Planning: Cost-Volume-Profit 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 and 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

Management Compensation, Business Analysis, and Business Valuation

Filters