Exam 13: Performance Evaluation for Managers

Blurbery Retailers has departments A and B with departmental income statements as follows. Blurbery 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?

Which statement relating to standard costs is not true?

Redoing the budget to actual output is most useful:

Which of these is a key purpose of standard costing?

The fixed budget performance report of Millar & Associates for the year ended 30 June 2014 shows budgeted manufacturing costs of $390 000 and actual manufacturing costs of $410 000. The unfavourable variance of $20 000 must have been due to:

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 these is not a total management system?

Anniversary Roses uses a special mix of compost to fortify the soil around their plants. The price standard used is $4.00 per sack of compost. During the year, the purchase price averaged $3.80 per sack. The business purchased and used 1540 sacks of compost during the year. Compute the direct materials price variance indicating whether it is favourable or unfavourable.

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

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

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

Blue Horizon Clothing Company produces men's shirts. During May, the company's records revealed the following information about production of the shirts. Standards: Direct materials 5 metres @ $2.50 per metre Direct labour 1 hour @ $7.50 per hour Manufacturing overhead: Variable $9.50 per direct labour hour Fixed $10.00 per ½ hour of direct labour Compute the standard unit cost for a shirt.

When direct operating expenses are subtracted from gross profit the result is:

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

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

A factor that is not involved in the calculation of departmental gross profit is:

A summary of expected costs for a range of activity levels that is geared to changes in the level of productive output, is the definition of a:

The balanced scorecard approach requires the organisation to be viewed from four perspectives, which includes how many of the following? Supplier Financial performance Customer Taxation obligations

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:

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

A projected cost for the future is called a: