Exam 23: Flexible Budgets and Performance Analysis

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,what is the actual total cost?

Write a brief note on the performance-based pay.

Which of the following determines a company's competitive advantage by comparing its performance with that of its closest competitors?

Performance reports should include

An organization's four basic stakeholder groups include investors,employees,internal business processes,and customers.

The manager of Center A of Harry International is responsible for generating cash inflows and incurring costs with the goal of generating returns for the company.The manager has no responsibility for assets.What type of responsibility center is Center A?

A manager can improve EVA by

How is the contribution margin calculated when utilizing variable costing?

The concern of responsibility accounting is limited to nonmonetary information.

Compute the residual income for Zeus Company's investment center from the information below.

The performance of Steve,the manager of Center B,is evaluated the end of every month,by comparing the amount spent on manufacturing overhead with the budgets prepared at the beginning of the month.What type of responsibility center is Center B?

Residual income is excess of operating income over net income.

The manager of Center D designs,produces,and sells products to external parties.The manager makes both long-term and short-term decisions regarding resources.What type of responsibility center is Center D?

A responsibility accounting system ensures that

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

The effectiveness of a performance management and evaluation system depends on how well it coordinates the goals of

Other things remaining constant,which of the following will improve the return on investment?

All organizations use same performance measures in their day-to-day business operations.

Responsibility accounting is of least help to manufacturing companies.

To succeed,an organization must add value for all of its stakeholders in the short term only.