Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter. \[\begin{array} { | l | r | r | r | r | r | l | } \hline & & & \text { Flexible Budget } & & & \\ \hline & { \text { Actual } } & \text { Flexible Budget } & \text { Variance } & \text { U/F } & \text { \% variance } & \text { U/F } \\ \hline \text { Sales Revenue } & \$ 688,000 & \$ 700,000 & & & & \\ \hline \text { Variable expenses } & 309,000 & 320,000 & & & & \\ \hline \text { Contribution margin } & 379,000 & 380,000 & & & & \\ \hline \text { Traceable fixed expenses } & 371,000 & 368,000 & & & & \\ \hline \text { Division margin } & \$ 8,000 & \$ 12,000 & & & & \\ \hline \end{array}\] -How much is the percentage variance for sales revenue?

A) 1.7 % F B) 1.7 % U C) 3.4 % U D) 3.4 % F A) 1.7 % F B) 1.7 % U C) 3.4 % U D) 3.4 % F

Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter. \[\begin{array} { | l | r | r | r | r | r | l | } \hline & & & \text { Flexible Budget } & & & \\ \hline & { \text { Actual } } & \text { Flexible Budget } & \text { Variance } & \text { U/F } & \text { \% variance } & \text { U/F } \\ \hline \text { Sales Revenue } & \$ 688,000 & \$ 700,000 & & & & \\ \hline \text { Variable expenses } & 309,000 & 320,000 & & & & \\ \hline \text { Contribution margin } & 379,000 & 380,000 & & & & \\ \hline \text { Traceable fixed expenses } & 371,000 & 368,000 & & & & \\ \hline \text { Division margin } & \$ 8,000 & \$ 12,000 & & & & \\ \hline \end{array}\] - How much is the variance for traceable fixed expenses?

A) $3,000 F B) $1,000 F C) $3,000 U D) $1,000 U A) $3,000 F B) $1,000 F C) $3,000 U D) $1,000 U

Tavares Manufactured Homes Company has a sales division which submits a monthly performance report as a revenue center. A partially completed performance report appears below: Revenue Center Performance Report -SK $\begin{array}{|c|c|c|c|c|c|c|c|} \hline & \text { Actual } & \text { Flexible Budget } & & \text { Flexible } & \text { Sales Volume } & & \text { Static } \\ \hline \text { Product type: } & \text { Sales Revenue } & \text { Variance } & \text { U/F } & \text { Budget } & \text { Variance } & \text { U/F } & \text { Budget } \\ \hline \text { Model A } & \$ 11,200 & & & \$ 12,000 & & & \$ 10,000 \\ \hline \text { Model B1 } & \$ 3,300 & & & \$ 3,000 & & & \$ 5,000 \\ \hline \text { Model B2 } & \$ 3,960 & & & \$ 4,000 & & & \$ 4,000 \\ \hline \text { Model B3 } & \$ 5,100 & & & \$ 5,000 & & & \$ 4,000 \\ \hline \end{array}$ -How much is the sales volume variance for Model B3?

A) $1,000 U B) $1,000 F C) $100 U D) $100 F A) $1,000 U B) $1,000 F C) $100 U D) $100 F

Rockland Heavy Industries has a sales division that focuses on power cranes. The sales division is a revenue center. Below is a partially completed performance report for the month of June. \[\begin{array}{l} \text { Revenue Center Performance Report - \$K }\\ \begin{array} { | l | r | c | c | c | c | c | c | } \hline & { \text { Actual } } & \text { Flexible Budget } & & \text { Flexible } & \text { Sales Volume } & & \text { Static } \\ \hline \text { Product type: } & \text { Sales Revenue } & \text { Variance } & \text { U/F } & \text { Budget } & \text { Variance } & \text { U/F } & \text { Budget } \\ \hline \text { Lightweight } & \$ 10,900 & & & \$ 11,000 & & & \$ 10,000 \\ \hline \text { Heavyweight } & \$ 9,120 & & & \$ 9,000 & & & \$ 10,000 \\ \hline \text { Green model } & \$ 6,100 & & & \$ 8,000 & & & \$ 7,000 \\ \hline \text { Extended length } & \$ 5,100 & & & \$ 5,000 & & & \$ 5,000 \\ \hline \end{array} \end{array}\] Rockland uses management by exception to investigate flexible budget variances. On which of the following variances would they focus first for investigation?

A) Lightweight B) Heavyweight C) Green model D) Extended length A) Lightweight B) Heavyweight C) Green model D) Extended length

Union Company's corporate payroll department is a cost center, and prepares monthly performance reports. Union uses the management by exception approach, based on the dollar amounts of the variances. Based on the performance report for the payroll department shown below, on which of the following variances would the company focus first for investigation and explanation? $\begin{array}{|c|c|c|c|c|c|c|} \hline \text { Cost Center } & & \text { Flexible } & \text { Flexible Budget } \\ \hline \text { Performance Report } & \text { Actual } & \text { Budget } & \text { Variance } & \mathrm{U} / \mathrm{F} & \% \text { variance } & \mathrm{U} / \mathrm{F} \\ \hline \text { Salary \& benefits } & \$ 46,000 & \$ 44,500 & \$ 1,50 & \text { U } & 3.4 & \mathrm{U} \\ \hline \text { Rent expense } & 12,750 & 11,900 & 850 & \text { U } & 7.1 \% & \mathrm{U} \\ \hline \text { Depreciation expense } & 8,900 & 9,080 & 180 & & 2.0 \% & \text { F } \\ \hline \text { Supply expense } & 1,890 & 2,200 & 310 & \bar{F} & 14.1 \% & \text { F } \\ \hline \text { Miscellaneous expense } & 4,320 & 4,120 & 200 & \text { U } & 4.9 \% & \text { U } \\ \hline&\$73,860&\$71,800&\$2,060&\text { U } &2.9\%&\text { U } \\ \hline \end{array}$

A) Rent expense B) Miscellaneous expense C) Salary and benefits D) Depreciation expense A) Rent expense B) Miscellaneous expense C) Salary and benefits D) Depreciation expense

Exam 24: Performance Evaluation and the Balanced Scorecard

Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter. Flexible Budget Actual Flexible Budget Variance U/F \% variance U/F Sales Revenue \ 688,000 \ 700,000 Variable expenses 309,000 320,000 Contribution margin 379,000 380,000 Traceable fixed expenses 371,000 368,000 Division margin \ 8,000 \ 12,000 -How much is the percentage variance for sales revenue?

(Multiple Choice)

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Question 41

The manager of a profit center has control of:

(Multiple Choice)

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Question 42

Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter. Flexible Budget Actual Flexible Budget Variance U/F \% variance U/F Sales Revenue \ 688,000 \ 700,000 Variable expenses 309,000 320,000 Contribution margin 379,000 380,000 Traceable fixed expenses 371,000 368,000 Division margin \ 8,000 \ 12,000 - How much is the variance for traceable fixed expenses?

(Multiple Choice)

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Question 43

In a balanced scorecard system, if operational efficiency was one of the critical factors, which of the following would be a relevant KPI?

(Multiple Choice)

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Question 44

Tavares Manufactured Homes Company has a sales division which submits a monthly performance report as a revenue center. A partially completed performance report appears below: Revenue Center Performance Report -SK Actual Flexible Budget Flexible Sales Volume Static Product type: Sales Revenue Variance U/F Budget Variance U/F Budget Model A \ 11,200 \ 12,000 \ 10,000 Model B1 \ 3,300 \ 3,000 \ 5,000 Model B2 \ 3,960 \ 4,000 \ 4,000 Model B3 \ 5,100 \ 5,000 \ 4,000 -How much is the sales volume variance for Model B3?

(Multiple Choice)

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Question 45

Which of the following would be considered a profit center?

(Multiple Choice)

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Question 46

Which of the following statements MOST accurately explains a positive residual income?

(Multiple Choice)

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Question 47

KPIs for revenue growth and cost cutting pertain to which of the four perspectives of a balanced scorecard?

(Multiple Choice)

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Question 48

If upper management is NOT satisfied with a division's current profit margin, which of the following strategies would they most likely recommend?

(Multiple Choice)

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Question 49

If a company division has a negative RI (residual income,) that means that the division did NOT use its assets as effectively as management expected.

(True/False)

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Question 50

Rockland Heavy Industries has a sales division that focuses on power cranes. The sales division is a revenue center. Below is a partially completed performance report for the month of June. Revenue Center Performance Report - \K Actual Flexible Budget Flexible Sales Volume Static Product type: Sales Revenue Variance U/F Budget Variance U/F Budget Lightweight \ 10,900 \ 11,000 \ 10,000 Heavyweight \ 9,120 \ 9,000 \ 10,000 Green model \ 6,100 \ 8,000 \ 7,000 Extended length \ 5,100 \ 5,000 \ 5,000 Rockland uses management by exception to investigate flexible budget variances. On which of the following variances would they focus first for investigation?

(Multiple Choice)

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Question 51

When a small company grows to a large size, it may decide to decentralize because it is difficult for one owner (or manager) to manage an entire, large business.

(True/False)

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Question 52

Union Company's corporate payroll department is a cost center, and prepares monthly performance reports. Union uses the management by exception approach, based on the dollar amounts of the variances. Based on the performance report for the payroll department shown below, on which of the following variances would the company focus first for investigation and explanation? Cost Center Flexible Flexible Budget Performance Report Actual Budget Variance / \% variance / Salary \& benefits \ 46,000 \ 44,500 \ 1,50 U 3.4 Rent expense 12,750 11,900 850 U 7.1\% Depreciation expense 8,900 9,080 180 2.0\% F Supply expense 1,890 2,200 310 14.1\% F Miscellaneous expense 4,320 4,120 200 U 4.9\% U \7 3,860 \7 1,800 \2 ,060 U 2.9\% U

(Multiple Choice)

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Question 53

Which of the following statements MOST accurately describes asset turnover?

(Multiple Choice)

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Question 54

In a decentralized business, a typical cost center is responsible for not only the profit and loss of its business, but also for the evaluation and return on capital investment projects.

(True/False)

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Question 55

In a balanced scorecard system, if financial profitability was one of the critical factors, which of the following would be a relevant KPI?

(Multiple Choice)

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Question 56

A key benefit of using the balanced scorecard to evaluate business performance is that:

(Multiple Choice)

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Question 57

A product line at Coca-Cola is most likely treated as a(n):

(Multiple Choice)

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Question 58

Innovation, operations and post-sales service are key factors related to which of the four perspectives of a balanced scorecard?

(Multiple Choice)

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Question 59

The formula for ROI takes the total company net income and divides by assets.

(True/False)

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Question 60

The manager of a profit center has control of:

In a balanced scorecard system, if operational efficiency was one of the critical factors, which of the following would be a relevant KPI?

Which of the following would be considered a profit center?

Which of the following statements MOST accurately explains a positive residual income?

KPIs for revenue growth and cost cutting pertain to which of the four perspectives of a balanced scorecard?

If upper management is NOT satisfied with a division's current profit margin, which of the following strategies would they most likely recommend?

If a company division has a negative RI (residual income,) that means that the division did NOT use its assets as effectively as management expected.

When a small company grows to a large size, it may decide to decentralize because it is difficult for one owner (or manager) to manage an entire, large business.

Which of the following statements MOST accurately describes asset turnover?

In a decentralized business, a typical cost center is responsible for not only the profit and loss of its business, but also for the evaluation and return on capital investment projects.

In a balanced scorecard system, if financial profitability was one of the critical factors, which of the following would be a relevant KPI?

A key benefit of using the balanced scorecard to evaluate business performance is that:

A product line at Coca-Cola is most likely treated as a(n):

Innovation, operations and post-sales service are key factors related to which of the four perspectives of a balanced scorecard?

The formula for ROI takes the total company net income and divides by assets.

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Management Accounting

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

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