Exam 10: Management Control Systems

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 for March?

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 the flexible budget variance for March?

An example of a negative incentive is

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 total cost for 2004 is

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 supplies is

Which of the following is NOT an advantage of participative budgeting?

Mertz, SA., has done a cost analysis for its production of flags. The following activities and cost drivers have been developed: Following are the actual costs of producing 75,000 flags: 1,000 machine hours; 15 batches; 10 purchase orders Required: Prepare an activity-based performance report.

Which budget should be used to determine how efficiently managers controlled costs?

The budget most appropriate for control purposes is the

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 maintenance 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 flexible budget for direct materials cost in 2004 is

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 setups in an activity-based performance report?

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 maintenance in an activity-based performance report?

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 purchasing in an activity-based performance report?

Which of the following is NOT a key feature of an ideal budgetary system?

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 total flexible budgeted costs for 2004 are

A budget developed for a single level of activity is called a(n)

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 total costs 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 flexible budget variance for indirect labour for 2004 is

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 rent is