Exam 24: Performance Evaluation for Managers

Which of the following is not an example of a service department for a university?

A___________ budget is a summary of expected costs for a range of activity levels geared to changes in the level of productive output.

With a management by exception system:

Which financial report is most commonly prepared for departmental reporting?

If consideration is being given to closing a department a complete analysis should include all of the following except:

The biggest problem with allocating indirect expenses to segments is that:

Which of the following is not an engineering method that can be used to develop standards?

Marcy's Roses uses a special potting mix that has a standard price of $8.00 per bag. During the year, the purchase price for the potting mix averaged $7.60 per bag. The business purchased and used 2360 bags of potting mix during the year. Calculate the direct materials price variance indicating whether it is favourable or unfavourable.

Performance reports should only contain costs, income or resources that are:

Costs that can be influenced by a manager in the short term are called:

A standard cost accounting system can be used for which of the following costs? I. Direct labour II. Direct materials III. Indirect materials IV. Manufacturing overhead

The _____________performance standard is usually considered best for use in setting standard costs.

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

In a decision relating to the possible elimination of a department consideration would need to be given to which of the following factors? I. Alternative uses of the space currently occupied by the department II. Adverse effect of the elimination of sales of other departments III. Whether all of the direct operating expenses are avoidable

Management by exception means:

Which of the following are benefits of standard costing? I. It makes employees more aware of the impact of costs on operations II. It serves as a target against which to evaluate performance III. It eliminates the need to compute variances IV. It is a cheap way of valuing inventory

Fifteen minutes of direct labour is needed to produce one unit of product and direct labour is paid $20 per hour. Budgeted output for the period is estimated to be 14 000 units. Actual output for the period turns out to be 14 600 units and actual labour costs are $77 900. What budgeted direct labour amount should actual direct labour costs be compared to in order to calculate a valid variance?

Northern Company has three departments, Wires, Ropes and Cables. At the end of the accounting period the following information is available: Northern Company is considering eliminating the Wires department. What will be the change in Northern Company's profit if the Wires department is eliminated? Assume that all indirect expenses are unavoidable and that all other circumstances are held constant.

Which of the following is a financial performance measure?

Which of the following departments would not be considered a service department in a restaurant business?