Question 1

Which of the following is a disadvantage of decentralization that occurs when the organization struggles to achieve goal congruence?

Accepted Answer

A) Unit managers may not understand the big picture of the company. 
B) Management does not have time to concentrate on long-term strategic planning. 
C) Unit managers have decreased motivation and retention. 
D) Managers receive training and experience to allow advancement in the organization. 
A) Unit managers may not understand the big picture of the company. 
B) Management does not have time to concentrate on long-term strategic planning. 
C) Unit managers have decreased motivation and retention. 
D) Managers receive training and experience to allow advancement in the organization.

Question 2

The human resources department for a steel manufacturer may be classified as a(n)

Accepted Answer

A) investment center. 
B) cost center. 
C) profit center. 
D) revenue center. 
A) investment center. 
B) cost center. 
C) profit center. 
D) revenue center.

Question 3

The duties of an investment center manager are similar to those of a CFO of an entire company.

Accepted Answer

A) True 
 B)False

Question 4

The store manager at the Dick's Sporting Goods location in Columbus, Ohio, may be in charge of a(n)

Accepted Answer

A) cost center. 
B) investment center. 
C) profit center. 
D) revenue center. 
A) cost center. 
B) investment center. 
C) profit center. 
D) revenue center.

Question 5

Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows:   What is the Photocopier Division's sales margin?

Accepted Answer

A) 200.00% 
B) 70.00% 
C) 5)47% 
D) 35.00% 
A) 200.00% 
B) 70.00% 
C) 5)47% 
D) 35.00%

Question 6

Customer satisfaction ratings may be an example of the

Accepted Answer

A) customer perspective. 
B) financial perspective. 
C) internal business perspective. 
D) learning and growth perspective. 
A) customer perspective. 
B) financial perspective. 
C) internal business perspective. 
D) learning and growth perspective.

Question 7

Revenue center performance reports are reports that list the variances between actual sales and budgeted sales.

Accepted Answer

A) True 
 B)False

Question 8

The flexible budget total cost formula applies only to a specific relevant range.

Accepted Answer

A) True 
 B)False

Question 9

The following data relates to Haven Corporation and its Northern Division.   What is the Northern Division's Residual Income (RI)?

Accepted Answer

A) $325,000 
B) $780,000 
C) $227,500 
D) $455,000 
A) $325,000 
B) $780,000 
C) $227,500 
D) $455,000

Question 10

The flexible budget variance is the difference between actual results and the flexible budget.

Accepted Answer

A) True 
 B)False

Question 11

A graph of a flexible budget formula reflects fixed costs of $40,000 per month and total costs of $84,000 at a volume of 4000 units. Assuming the relevant range is 1,000 to 20,000 units, the graph would reflect total monthly costs at 8000 units of what dollar amount?

Accepted Answer

A) $128,000 
B) $84,000 
C) $212,000 
D) $88,000 
A) $128,000 
B) $84,000 
C) $212,000 
D) $88,000

Question 12

Southern Instruments makes calculators for business applications. The budgeted selling price is $120 per calculator, the variable rate is $81 per calculator and budgeted fixed costs are $160,000 per month. What is the budgeted operating income for 16,000 calculators sold in a month?

Accepted Answer

A) $624,000 
B) $1,456,000 
C) $1,920,000 
D) $464,000 
A) $624,000 
B) $1,456,000 
C) $1,920,000 
D) $464,000

Question 13

All four perspectives must always be included on each individual company's balanced scorecard.

Accepted Answer

A) True 
 B)False

Question 14

Lubrizol is a large chemical company that specializes in producing lubricants. Lubrizol was acquired in 2011 for $9 billion by investment holding company Berkshire Hathaway. Lubrizol may be classified as a(n)

Accepted Answer

A) cost center. 
B) investment center. 
C) profit center. 
D) revenue center. 
A) cost center. 
B) investment center. 
C) profit center. 
D) revenue center.

Question 15

The results of a customer survey about customer experiences with the company's services may be an example of measuring which perspective of the balanced scorecard?

Accepted Answer

A) Financial 
B) Customer 
C) Internal business 
D) Learning and growth 
A) Financial 
B) Customer 
C) Internal business 
D) Learning and growth

Question 16

Rustic Corporation has an ROI of 21%, total assets of$6,200,000, and current liabilities of $850,000. What is Rustic Corporation's operating income?

Accepted Answer

A) $1,123,500 
B) $4,047,619 
C) $29,523,810 
D) $1,302,000 
A) $1,123,500 
B) $4,047,619 
C) $29,523,810 
D) $1,302,000

Question 17

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

Accepted Answer

A) The cost of sales 
B) The number of units sold differs from planned sales levels 
C) The selling price per unit 
D) Both the selling price and the number of units sold 
A) The cost of sales 
B) The number of units sold differs from planned sales levels 
C) The selling price per unit 
D) Both the selling price and the number of units sold

Question 18

List the four areas of a balanced scorecard. Describe each area. Define "key performance indicator" (KPI). Give an example of a KPI in each balanced scorecard perspective.

Accepted Answer

1. Financial Perspective─The financial p

Question 19

The ________ is the optimum budget to managers that plan revenues and expenses at different sales volumes.

Accepted Answer

A) flexible budget 
B) capital budget 
C) static budget 
D) master budget 
A) flexible budget 
B) capital budget 
C) static budget 
D) master budget

Question 20

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

Accepted Answer

A) customer perspective. 
B) financial perspective. 
C) internal business perspective. 
D) learning and growth perspective. 
A) customer perspective. 
B) financial perspective. 
C) internal business perspective. 
D) learning and growth perspective.

Which of the following is a disadvantage of decentralization that occurs when the organization struggles to achieve goal congruence?

The human resources department for a steel manufacturer may be classified as a(n)

The duties of an investment center manager are similar to those of a CFO of an entire company.

The store manager at the Dick's Sporting Goods location in Columbus, Ohio, may be in charge of a(n)

Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: What is the Photocopier Division's sales margin?

Customer satisfaction ratings may be an example of the

Revenue center performance reports are reports that list the variances between actual sales and budgeted sales.

The flexible budget total cost formula applies only to a specific relevant range.

The following data relates to Haven Corporation and its Northern Division. What is the Northern Division's Residual Income (RI)?

The flexible budget variance is the difference between actual results and the flexible budget.

A graph of a flexible budget formula reflects fixed costs of $40,000 per month and total costs of $84,000 at a volume of 4000 units. Assuming the relevant range is 1,000 to 20,000 units, the graph would reflect total monthly costs at 8000 units of what dollar amount?

Southern Instruments makes calculators for business applications. The budgeted selling price is $120 per calculator, the variable rate is $81 per calculator and budgeted fixed costs are $160,000 per month. What is the budgeted operating income for 16,000 calculators sold in a month?

All four perspectives must always be included on each individual company's balanced scorecard.

Lubrizol is a large chemical company that specializes in producing lubricants. Lubrizol was acquired in 2011 for $9 billion by investment holding company Berkshire Hathaway. Lubrizol may be classified as a(n)

The results of a customer survey about customer experiences with the company's services may be an example of measuring which perspective of the balanced scorecard?

Rustic Corporation has an ROI of 21%, total assets of$6,200,000, and current liabilities of $850,000. What is Rustic Corporation's operating income?

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

List the four areas of a balanced scorecard. Describe each area. Define "key performance indicator" (KPI). Give an example of a KPI in each balanced scorecard perspective.

The ________ is the optimum budget to managers that plan revenues and expenses at different sales volumes.

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

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 10: Performance Evalulation

Which of the following is a disadvantage of decentralization that occurs when the organization struggles to achieve goal congruence?

The human resources department for a steel manufacturer may be classified as a(n)

The duties of an investment center manager are similar to those of a CFO of an entire company.

The store manager at the Dick's Sporting Goods location in Columbus, Ohio, may be in charge of a(n)

Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: What is the Photocopier Division's sales margin?

Customer satisfaction ratings may be an example of the

Revenue center performance reports are reports that list the variances between actual sales and budgeted sales.

The flexible budget total cost formula applies only to a specific relevant range.

The following data relates to Haven Corporation and its Northern Division. What is the Northern Division's Residual Income (RI)?

The flexible budget variance is the difference between actual results and the flexible budget.

A graph of a flexible budget formula reflects fixed costs of $40,000 per month and total costs of $84,000 at a volume of 4000 units. Assuming the relevant range is 1,000 to 20,000 units, the graph would reflect total monthly costs at 8000 units of what dollar amount?

Southern Instruments makes calculators for business applications. The budgeted selling price is $120 per calculator, the variable rate is $81 per calculator and budgeted fixed costs are $160,000 per month. What is the budgeted operating income for 16,000 calculators sold in a month?

All four perspectives must always be included on each individual company's balanced scorecard.

Lubrizol is a large chemical company that specializes in producing lubricants. Lubrizol was acquired in 2011 for $9 billion by investment holding company Berkshire Hathaway. Lubrizol may be classified as a(n)

The results of a customer survey about customer experiences with the company's services may be an example of measuring which perspective of the balanced scorecard?

Rustic Corporation has an ROI of 21%, total assets of$6,200,000, and current liabilities of $850,000. What is Rustic Corporation's operating income?

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

List the four areas of a balanced scorecard. Describe each area. Define "key performance indicator" (KPI). Give an example of a KPI in each balanced scorecard perspective.

The ________ is the optimum budget to managers that plan revenues and expenses at different sales volumes.

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

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters