Exam 24: Performance Evaluation for Managers

In current times the focus of managers has tended to shift away from measurement systems that rely on financial data to the design of total management systems. Which of the following is not a total management system?

A typical example of a direct cost for the distribution department is:

Which of the following statements concerning departmental (segmental) accounting is correct?

Calculate the correct variances from the following: budgeted sales $78 000; actual sales $83 000; actual direct labour $36 000; budgeted direct labour $40 000.

A projected cost for the future is called a:

An allocation of delivery expenses to other departments which results in an answer that is not an estimate could be based on:

Which of the following is not included in the calculation of departmental gross profit?

A flexible budget is one where:

Bob's Warehouse 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 $300 000 and for department B $200 000 and total advertising expenses are $12 600. The amount allocated to the two departments is:

Match the following costs with their descriptions. I. Controllable expenses A. Carefully predetermined costs II. Standard costs B. Costs which are eliminated if a department is closed III. Avoidable costs C. Expenses that cannot be directly traced to a cost object IV. Indirect expenses D. Expenses which can be influenced by a manager

Which of the following statements relating to standard costs is incorrect?

Cyber Company occupies one site and consists of Departments, Alpha, Delta and Omega. If Department Alpha is the cost object, which of the following is an example of an indirect cost?

The fixed budget performance report of Boston Associates for the year ended 30 June 2019 shows budgeted manufacturing costs of $540 000 and actual manufacturing costs of $570 000. The unfavourable variance of $30 000 must have been due to:

Which departmental report is not suitable for use for responsibility accounting purposes?

If the actual quantity of direct materials used equals the budgeted quantity of direct materials that should have been used, any difference between the budgeted total cost and the actual total cost of direct materials used must be due to a:

___________will continue to exist even if a department is eliminated.

Which of the following statements concerning the allocation of indirect expenses to departments is correct?

Which of the following is a financial performance measure?

Which department is typically responsible for direct materials price variances?

A deviation from a financial plan is called a(n):