Exam 13: Performance Evaluation for Managers

The Apia Vineyard uses a special mix of compost to fortify the soil around the vines.The price standard used is $3.50 per sack of compost.During the year,the purchase price averaged $3.65 per sack.The vineyard purchased and used 1,560 sacks of compost during the year.Compute the direct materials price variance indicating whether it is favourable or unfavourable.

Department A has a gross profit of $20,000,direct departmental expenses of $6,400 and allocated expenses of $19,000 giving a net loss of $5,400.What would be the effect on the total organisation's profit if Department A was closed?

________________ by ______________ is the monitoring of management performance by concentrating on results that deviate significantly from planned results.

Costs that a manager can influence in the short term are called:

A responsibility centre that is held accountable for controlling both costs and income is called a:

Y Co allocates advertising expenses to its two departments,A and B,on the basis of sales.For the current year the sales for department A are $200,000 and for department B $800,000 and total advertising expenses are $16,800.The amount allocated to the two departments is:

The balanced scorecard approach requires the organisation to be viewed from four perspectives,which is not one of those perspectives?

Which of these factors is the least controllable by the department manager and therefore not his/her main focus of attention?

Which of these departments would not be considered a service department for a tyre retailer?

How many of these are considered to be benefits of standard costing? ? It makes employees more aware of the impact of costs on operations ? It serves as a target against which to evaluate performance ? It is a cheap way of valuing inventory ? It eliminates the need to compute variances

A series of budgets produced for different levels of activity are known as f_______________ budgets.

In a decision relating to the possible elimination of a department consideration needs to be given to all of the following except:

Management by exception means:

Mayfield Retailers has departments A and B with departmental income statements as follows: Department A Department B Net sales \ 70000 \ 50000 Cost of sales 30000 20000 Other Expenses 13000 31000 Profit (Loss) \ 27000 (\ 1000) Mayfield is considering eliminating Department B.Of the total 'other expenses' for the two departments of $44 000,$32 000 are fixed general overhead expenses and the rest are variable expenses based on 10% of sales.It is estimated that the elimination of Department B will cause a 10% decrease in the sales of Department A.What will be the profit or loss of Department A after the elimination of Department B?

Based on an expected production level of 30 000 units Magnolia Manufacturing's cost 1. estimates are: Direct labour \ 20 per unit Direct materials \ 15 per unit Variable overhead \ 12 per unit Fixed overhead \ 150000 If 33 000 units are actually produced during the period the flexible budget's total production cost is:

The departmental c___________ is the income of the department less its direct expenses.

Mayfield Retailers has departments A and B with departmental income statements as follows: Department A Department B Net sales \ 70000 \ 50000 Cost of sales 30000 20000 Other Expenses 13000 31000 Profit (Loss) \ 27000 (\ 1000) Mayfield is considering eliminating Department B.Of the total 'other expenses' for the two departments of $44 000,$32 000 are fixed general overhead expenses and the rest are variable expenses based on 10% of sales.What is the present departmental contribution of Department B?

The statement relating to standard costs that is not true is:

Which accounting report is most commonly prepared for departmental reporting?