Exam 10: Management Control Systems

Villafane, SA., has done a cost analysis for its production of decals. The following activities and cost drivers have been developed: Following are the actual costs of producing 35,000 decals: 1,000 machine hours; 5 batches; 30 purchase orders The following variances were given in the activity performance report: What is the actual cost of machining?

Armati, SA., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, SA., had the following budgeted data: The following actually occurred: The flexible budget for rent in 2004 is

Controllable costs are those that a manager

Harald, SA., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed: Following are the actual costs of producing 85,000 stickers: 5,000 machine hours; 10 batches; 20 purchase orders What is the budget variance for purchasing in an activity-based performance report?

Armati, SA., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, SA., had the following budgeted data: The following actually occurred: The static budget variance for supervision is

_____ refers to a global incentive that encourages employees to contribute to the overall financial well-being.

Make a distinction between the manager's basic responsibilities for the following types of responsibility centres: a. cost centre b. revenue centre c. profit centre d. investment centre

Glenn, SA., has done a cost analysis for its production of T-shirts. The following activities and cost drivers have been developed: Following are the actual costs of producing 75,000 T-shirts: 5,000 machine hours; 10 batches; 20 purchase orders What is the budget variance for inspection in an activity-based performance report?

_____ are awards made when performance is maintained or exceeds a specific measure.

Glenn, SA., has done a cost analysis for its production of T-shirts. The following activities and cost drivers have been developed: Following are the actual costs of producing 75,000 T-shirts: 5,000 machine hours; 10 batches; 20 purchase orders What is the budget variance for machining in an activity-based performance report?

Figure 1 Torino, SA., manufactures machine parts. Torino has developed a static budget for its plant at an activity level of 10,000 direct labour hours for the month of March. The actual level of activity was 11,000 hours. The following table summarizes the static budget and the actual costs for March: -Refer to Figure 1. Which of the following describes how well the plant manager performed for the month of March?

Which of the following is NOT a key feature of a budgetary system that promotes positive managerial performance?

Participative budgeting offers which of the following advantages?

When budgets are used for control,

A budget that is developed around one particular level of activity is

Identify and discuss the key features that a budgetary system should have to encourage managerial, goal-congruent behaviour.

Armati, SA., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, SA., had the following budgeted data: The following actually occurred: The flexible budget variance for supervision for 2004 is

Define responsibility accounting and describe four types of responsibility centres.

Figure 1 Torino, SA., manufactures machine parts. Torino has developed a static budget for its plant at an activity level of 10,000 direct labour hours for the month of March. The actual level of activity was 11,000 hours. The following table summarizes the static budget and the actual costs for March: -Refer to Figure 1. What is the flexible budget variance for March?

Which of the following is not an essential element of responsibility accounting?