Exam 10: Performance Evaluation

The performance reports of cost centers only include those costs incurred within each individual cost center.

Boat Hull Manufacturing produces boat parts at the manufacturing facility in Virginia.The managerial accountant reported that Boat Hull Manufacturing manufactures parts to repair the container ships that import products from China.The main part that Boat Hull Manufacturing produces is the T24 part.The Port Department produces the T24 part at the Boat Hull Manufacturing facility in Virginia.The managerial accountant reported that the Deport Department could also produce the T24 part because there is excess capacity at the facility.The managerial accountant reported the current market price of the T24 part is $825 and reported the following manufacturing cost and expenses data: What is the highest transfer price the selling division would receive,and the buying division would pay,for the T24 part?

Which of the following causes the master budget variance between the amounts in the master budget and the flexible budget of a revenue center?

The manager of the Walt Disney World Studios (a corporate division)may be in charge of a(n)

Cash flows from operations and gross margin growth may be examples of the

The number of repeat customers may be an example of measuring which perspective of the balanced scorecard?

Flash E-Card Manufacturing manufactures software parts for the computer software systems that produce e-cards.The Flash II part is currently manufactured in the Computer Department.The Data Department also produces the part and the plant has excess capacity to produce the Flash II part.The current market price of the Flash II part is $600.The managerial accountant reported the following manufacturing costs and variable expense data: If the highest acceptable transfer price is $600 in the market,what is the lowest acceptable in-house price the Data Department should receive to produce the part in-house at the Computer Department?

The duties of an investment center manager are similar to those of a CEO.

With regard to flexible budgets,which of the following statements is true?

Customer satisfaction ratings may be an example of the

Another name for a static budget is a flexible budget.

Summer Nights sells bottles of bug spray for $6.50 each.Variable costs are $3.00 per bottle,while fixed costs are $44,000 per month for volumes up to 30,000 bottles of spray and $54,000 per month for volumes above 30,000 bottles of spray.The flexible budget would reflect monthly operating income for 19,000 bottles of lotion and 24,000 bottles of lotion of what dollar amounts?

Dagny Enterprises has a target rate of return of 10%,an ROI of 48%,and capital turnover of 3.0.The sales margin for Dagny Enterprises may be closest to

The number of employee suggestions implemented and percentage of the sales force with access to real-time inventory levels may be examples of the

Flexible budgets are budgets that summarize cost and revenue information for a single volume level.

A company's flexible budget for 93,000 units of production showed sales of $300,000;variable costs of $150,000;and fixed costs of $90,000.What net operating income would you expect the company to earn if it produces and sells 98,000 units? (Assume 98,000 units is in the relevant range. )

The Sunny Division of Miami Corporation reported the following results from the past year.Shareholders require a return of 10%.Management calculated a weighted-average cost of capital (WACC)of 5%.Sunny's corporate tax rate is 30%. What is the division's Residual Income (RI)?

A flexible budget is a budget prepared for a different level of volume than that which was originally anticipated.

If a company must decrease its sales price of a product while all of the company's expenses remain constant,what will happen to return on investment (ROI)?

Marble Countertops and Cabinet Manufacturing produces marble inserts to accommodate the marble countertops.The Marble Division can use the MAR1 insert that is manufactured in the company's Cabinet Division because there is excess capacity.The standard market price to produce the MAR1 insert is $1,400.The managerial accountant reported the following manufacturing cost and variable expense information: What is the highest price that Marble Countertops and Cabinet Manufacturing should pay in the outside market? What is the lowest acceptable transfer price to the Cabinet Division? What would happen if the managerial accountant produced the part below the acceptable transfer price?