Question 1

Variable costing is utilized to evaluate the performance of

Accepted Answer

A) investment centers. 
B) revenue centers. 
C) cost centers. 
D) profit centers. 
A) investment centers. 
B) revenue centers. 
C) cost centers. 
D) profit centers.

Question 2

Compute the current liabilities for the Atlas Technologies using the information given below:

Accepted Answer

A) $53,000 
B) $166,667 
C) $125,000 
D) $100,000 
A) $53,000 
B) $166,667 
C) $125,000 
D) $100,000

Question 3

The manager of Center C is only responsible for generating and processing online orders of a large retailer.What type of responsibility center is Center C?

Accepted Answer

A) Discretionary cost center 
B) Profit center 
C) Revenue center 
D) Investment center 
A) Discretionary cost center 
B) Profit center 
C) Revenue center 
D) Investment center

Question 4

For residual income figures to be comparable on a companywide basis,all investment centers must have equal access to resources and similar asset investment bases.

Accepted Answer

A) True 
 B)False

Question 5

Why are managers more likely to achieve their objectives in both the short term and the long term when they utilize a tool such as the balanced scorecard?

Accepted Answer

Managers are more likely to achieve thei

Question 6

The equation for economic value added excludes operating income and current liabilities.

Accepted Answer

A) True 
 B)False

Question 7

Managers at all levels are evaluated in terms of their ability to manage their areas of responsibility in keeping with organizational goals.

Accepted Answer

A) True 
 B)False

Question 8

Bianca Publishing has a number of investment centers to track on a day-to-day basis.The following represent key figures related to one of Bianca's investment centers for February 2014:   What is the investment center's ROI for February 2014 (rounded percentage answer to two decimal places)?

Accepted Answer

A) 38.81 percent 
B) 76.40 percent 
C) 61.19 percent 
D) 23.60 percent 
A) 38.81 percent 
B) 76.40 percent 
C) 61.19 percent 
D) 23.60 percent

Question 9

As the staff accountant for Investment Centers Beta and Gamma,compute the residual income for each investment center,using the following information:

Accepted Answer

Investment Center Beta: $850,0

Question 10

Compute the return on investment (rounded to nearest percent)for the Tim Tom investment center from the information given below.

Accepted Answer

A) 21% 
B) 18% 
C) 15% 
D) 12% 
A) 21% 
B) 18% 
C) 15% 
D) 12%

Question 11

It is necessary for managers to fully understand the causal relationship between their actions and the organization's overall performance to get results.

Accepted Answer

A) True 
 B)False

Question 12

Dana Klammer is the manager of the Cutting Department in the Northwest Division of Steel Products.Which of the following costs is Dana's controllable cost?

Accepted Answer

A) Salaries of cutting workers 
B) Cost of electricity for the Northwest Division 
C) Lumber Department hauling costs 
D) Vice president's salary 
A) Salaries of cutting workers 
B) Cost of electricity for the Northwest Division 
C) Lumber Department hauling costs 
D) Vice president's salary

Question 13

ROI,residual income,and economic value added all represent performance measures that can be utilized to determine investment center performance.

Accepted Answer

A) True 
 B)False

Question 14

An organization chart assists in management control.

Accepted Answer

A) True 
 B)False

Question 15

Cost of capital is the minimum desired rate of return on a particular investment.

Accepted Answer

A) True 
 B)False

Question 16

Provide three examples of something that an organization might want to measure and a performance measurement that could be utilized in each example.

Accepted Answer

Answers will vary.Th

Exam 23: Flexible Budgets and Performance Analysis

Variable costing is utilized to evaluate the performance of

Compute the current liabilities for the Atlas Technologies using the information given below:

The manager of Center C is only responsible for generating and processing online orders of a large retailer.What type of responsibility center is Center C?

For residual income figures to be comparable on a companywide basis,all investment centers must have equal access to resources and similar asset investment bases.

Why are managers more likely to achieve their objectives in both the short term and the long term when they utilize a tool such as the balanced scorecard?

The equation for economic value added excludes operating income and current liabilities.

Managers at all levels are evaluated in terms of their ability to manage their areas of responsibility in keeping with organizational goals.

Bianca Publishing has a number of investment centers to track on a day-to-day basis.The following represent key figures related to one of Bianca's investment centers for February 2014: What is the investment center's ROI for February 2014 (rounded percentage answer to two decimal places)?

As the staff accountant for Investment Centers Beta and Gamma,compute the residual income for each investment center,using the following information:

Compute the return on investment (rounded to nearest percent)for the Tim Tom investment center from the information given below.

It is necessary for managers to fully understand the causal relationship between their actions and the organization's overall performance to get results.

Dana Klammer is the manager of the Cutting Department in the Northwest Division of Steel Products.Which of the following costs is Dana's controllable cost?

ROI,residual income,and economic value added all represent performance measures that can be utilized to determine investment center performance.

An organization chart assists in management control.

Cost of capital is the minimum desired rate of return on a particular investment.

Provide three examples of something that an organization might want to measure and a performance measurement that could be utilized in each example.

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

Filters