Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A) $655,650 
B) $688,000 
C) $198,500 
D) $704,750 
A) $655,650 
B) $688,000 
C) $198,500 
D) $704,750 C

Question 3

Awards are often used to encourage

Accepted Answer

A) intermediate performance. 
B) short-term performance. 
C) long-term performance. 
D) both short-term and long-term performance. 
A) intermediate performance. 
B) short-term performance. 
C) long-term performance. 
D) both short-term and long-term performance. D

Question 4

For purposes of computing EVA,the minimum desired rate or return on an investment is known as

Accepted Answer

A) ROI. 
B) cost of capital. 
C) residual income. 
D) profit margin. 
A) ROI. 
B) cost of capital. 
C) residual income. 
D) profit margin.

Question 5

Which of the following performance measures focus on short-term financial performance?

Accepted Answer

A) Economic value added 
B) Residual income 
C) ROI 
D) All of these choices 
A) Economic value added 
B) Residual income 
C) ROI 
D) All of these choices

Question 6

Variable costing allows a manager to classify controllable costs as

Accepted Answer

A) variable and fixed costs. 
B) avoidable and unavoidable costs. 
C) necessary and unnecessary costs. 
D) short-term and long-term variable costs. 
A) variable and fixed costs. 
B) avoidable and unavoidable costs. 
C) necessary and unnecessary costs. 
D) short-term and long-term variable costs.

Question 7

Which of the following is a performance measure?

Accepted Answer

A) Quality of raw materials used in production 
B) Number of orders shipped in a day 
C) Level of customer satisfaction 
D) All of these choices 
A) Quality of raw materials used in production 
B) Number of orders shipped in a day 
C) Level of customer satisfaction 
D) All of these choices

Question 8

The balanced scorecard is a framework that links the perspectives of an organization's stakeholders with its

Accepted Answer

A) goals and vision,performance goals,strategic plan,and financial resources. 
B) mission and overall plan,performance measures,departmental plans,and resources. 
C) mission and vision,performance measures,strategic plans,and resources. 
D) mission and vision,performance goals,overall plan,and resources. 
A) goals and vision,performance goals,strategic plan,and financial resources. 
B) mission and overall plan,performance measures,departmental plans,and resources. 
C) mission and vision,performance measures,strategic plans,and resources. 
D) mission and vision,performance goals,overall plan,and resources.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a common type of incentive compensation?

Accepted Answer

A) Health insurance 
B) Profit-sharing plans 
C) Pension plans 
D) Flexible spending programs 
A) Health insurance 
B) Profit-sharing plans 
C) Pension plans 
D) Flexible spending programs

Question 11

A manager can improve the economic value of an investment center by increasing sales.

Accepted Answer

A) True 
 B)False

Question 12

Kristen Roper oversees her company's largest and most profitable investment center.She has asked you,as her staff accountant,to compute the center's ROI,residual income,and EVA for the month of August 2014,using the following information (rounded to two decimal places):

Accepted Answer

Assets Invested = ($510,000 + $500,000)@#LAT-DLM&

Question 13

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below.   
-Using the information provided for Dry Cat Food division,the flexible budget is based on how many units produced?

Accepted Answer

A) 0 units 
B) 30 units 
C) 70 units 
D) 100 units 
A) 0 units 
B) 30 units 
C) 70 units 
D) 100 units

Question 14

The CEO of Star Coffee is interested in reviewing the May 2014 performance report for Cost Center 7-11.Prepare a brief performance report for the CEO utilizing the following information for Cost Center 7-11.Line items should be broken out between direct materials,direct labor,variable overhead,and fixed overhead.

Accepted Answer

The answer of The CEO of Star Coffee is interested...

Question 15

Determine the October 2014 ROI for an investment center with the following information:   Round percentage answer to two decimal places.

Accepted Answer

A) 26.8 percent 
B) 22.8 percent 
C) 24.8 percent 
D) 28.8 percent 
A) 26.8 percent 
B) 22.8 percent 
C) 24.8 percent 
D) 28.8 percent

Question 16

A performance management and evaluation system allows a company to identify how well it is doing,where it is going,and what improvements will make it more profitable.

Accepted Answer

A) True 
 B)False

Question 17

Using the following information,prepare a traditional income statement and a variable costing income statement:

Accepted Answer

The answer of Using the following information,prepare a traditional income...

Question 18

Tying compensation incentives to performance targets decreases the likelihood that the goals of responsibility centers,managers,and the entire organization will be well coordinated.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a stakeholder of an organization?

Accepted Answer

A) The accounts receivable clerk of the organization 
B) A vice president of the organization 
C) A line supervisor of the organization 
D) All of these choices 
A) The accounts receivable clerk of the organization 
B) A vice president of the organization 
C) A line supervisor of the organization 
D) All of these choices

Exam 23: Flexible Budgets and Performance Analysis

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

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

Awards are often used to encourage

For purposes of computing EVA,the minimum desired rate or return on an investment is known as

Which of the following performance measures focus on short-term financial performance?

Variable costing allows a manager to classify controllable costs as

Which of the following is a performance measure?

The balanced scorecard is a framework that links the perspectives of an organization's stakeholders with its

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

Which of the following is a common type of incentive compensation?

A manager can improve the economic value of an investment center by increasing sales.

Kristen Roper oversees her company's largest and most profitable investment center.She has asked you,as her staff accountant,to compute the center's ROI,residual income,and EVA for the month of August 2014,using the following information (rounded to two decimal places):

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below. -Using the information provided for Dry Cat Food division,the flexible budget is based on how many units produced?

Determine the October 2014 ROI for an investment center with the following information: Round percentage answer to two decimal places.

A performance management and evaluation system allows a company to identify how well it is doing,where it is going,and what improvements will make it more profitable.

Using the following information,prepare a traditional income statement and a variable costing income statement:

Tying compensation incentives to performance targets decreases the likelihood that the goals of responsibility centers,managers,and the entire organization will be well coordinated.

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

Which of the following is a stakeholder of an organization?

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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