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 variable expenses?

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

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 variable expenses?

(Multiple Choice)

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Question 161

Which one of the following is NOT a goal of a performance evaluation system?

(Multiple Choice)

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Question 162

When a company is comparing the financial performance of various divisions, it may choose to focus on RI as opposed to ROI because using RI tends to lead toward goal congruence between the division and the corporation.

(True/False)

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Question 163

ROI (return on investment) focuses on the ratio of operating income to average assets.

(True/False)

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Question 164

A good balanced scorecard focuses only on leading indicators, because lagging indicators that relate to past performance are not important for the scorecard.

(True/False)

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Question 165

One part of the balanced scorecard helps management answer the question: "How do we look to shareholders?" Which of the four perspectives is being described here?

(Multiple Choice)

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Question 166

Which one of the following is NOT a goal of a performance evaluation system?

When a company is comparing the financial performance of various divisions, it may choose to focus on RI as opposed to ROI because using RI tends to lead toward goal congruence between the division and the corporation.

ROI (return on investment) focuses on the ratio of operating income to average assets.

A good balanced scorecard focuses only on leading indicators, because lagging indicators that relate to past performance are not important for the scorecard.

One part of the balanced scorecard helps management answer the question: "How do we look to shareholders?" Which of the four perspectives is being described here?

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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