Exam 21: Flexible Budgets and Performance Analysis

Variable costing is a method of reporting that deals only with a manager's controllable costs,variable costs.

Awards are often used to encourage

Determine the March 2014 residual income for an investment center with the following information:

The balanced scorecard links the perspectives of an organization's stakeholders with the organization's mission and vision,performance measures,strategic plan,and resources.

A good example of a profit center would be

Calculate ROI,residual income,and EVA for each of the investment centers listed.(Round to two decimal places. )

Variable costing is utilized to evaluate the performance of

Compute the July 2014 cost of capital (rounded to nearest percent)for an investment center with the following information:

The linking of employee compensation to the achievement of measurable business targets is called

The learning and growth perspective of Sweetcake Restaurant shows increasing customer satisfaction as an objective.Which of the following will be an appropriate performance measure of this objective?

A responsibility center whose manager is held accountable for both revenues and costs and for the resulting operating income is called a revenue center.

Residual income is excess of operating income over net income.

When calculating ROI,assets invested represent the average of the beginning and ending asset balances for a given period.

Which of the following types of incentives encourages an employee to think as both investor and employee?

The alignment of an organization's strategy with all the perspectives of the balanced scorecard results in performance objectives that benefit all stakeholders.

Flexible budgeting is utilized to evaluate a cost center's performance.