Question 1

Each balanced scorecard section should indicate specific measurements that would help assess the organization's progress toward its short-run goals and objectives.

Accepted Answer

A) True 
 B)False

Question 2

Use the following information to answer questions 
Woller Meat Packing produces frozen hamburgers and sausages. During 2010, the company incurred $600,000 of overhead. Overhead costs and their related cost drivers are as follows:
 
-If Woller uses activity-based costing, what is the per-unit profit margin for hamburgers (round to the nearest cent)?

Accepted Answer

A)  $0.27 
B)  $0.39 
C)  $0.45 
D)  $0.82 
E)  $1.04

Question 3

Treating a batch level cost as though it were a unit level cost will cause too much overhead to be allocated to the products that are produced in large quantities.

Accepted Answer

A) True 
 B)False

Question 4

Business-value-added activities provide value to the organization and its customers.

Accepted Answer

A) True 
 B)False

Question 5

Use the following information to answer questions 
Woller Meat Packing produces frozen hamburgers and sausages. During 2010, the company incurred $600,000 of overhead. Overhead costs and their related cost drivers are as follows:
 
-If Woller uses activity-based costing, how much total overhead should be assigned to sausages?

Accepted Answer

A)  $126,000 
B)  $128,000 
C)  $198,000 
D)  $242,000 
E)  $358,000

Question 6

Randazzo Corporation manufactures aquariums. During 2010, Randazzo's sales force sold 2,000,000 aquariums at $22.00 per aquarium. Randazzo budgeted that its sales force would sell 2,100,000 aquariums at $20.50 per aquarium.
	Required:
a.	Calculate Randazzo's sales price variance.
b.	Calculate Randazzo's sales volume variance.
c.	Calculate Randazzo's total revenue variance.

Accepted Answer

The answer of Randazzo Corporation manufactures aquariums. During 2010, Randazzo's...

Question 7

Use the following information to answer questions 
Following are Greyson Corporation's 2010 year-end balance sheet and 2010 income statements.
‪ 
-What is Greyson's 2010 profit margin?

Accepted Answer

A)  6% 
B)  12% 
C)  15% 
D)  18% 
E)  19%

Question 8

Use the following information to answer questions 
Seguin Corp. just invested $3,750,000 in new blu-ray technology. Revenues realized from the investment during the period were $3,125,000 and expenses were $2,500,000.
-What is the profit margin for the new technology?

Accepted Answer

A)  17% 
B)  20% 
C)  80% 
D)  125% 
E)  500%

Question 9

A profit center manager is responsible for revenue generation and return on assets.

Accepted Answer

A) True 
 B)False

Question 10

Use the following information to answer questions 
Seguin Corp. just invested $3,750,000 in new blu-ray technology. Revenues realized from the investment during the period were $3,125,000 and expenses were $2,500,000.
-What is the asset turnover for the new technology (round to the nearest whole percentage)?

Accepted Answer

A)  17% 
B)  67% 
C)  83% 
D)  120% 
E)  150%

Question 11

The process of invoicing customers for amounts owed is a

Accepted Answer

A)  value-added activity. 
B)  performance measurement activity. 
C)  non-value added activity. 
D)  business-value-added activity. 
E)  both c and d.

Question 12

Use the following information to answer questions 
Dexter PC estimates sales of 20,000 tool kits at $35 per tool kit in June. During June, 15,000 tool kits were sold for total revenue of $705,000.
-What is the sales volume variance?

Accepted Answer

A)  $175,000 favorable 
B)  $175,000 unfavorable 
C)  $180,000 favorable 
D)  $180,000 unfavorable 
E)  none of the above

Question 13

As the level of responsibility goes lower in an organization, performance measurements should become more job specific.

Accepted Answer

A) True 
 B)False

Question 14

A balance scorecard will contain measures that are

Accepted Answer

The answer of A balance scorecard will contain measures that...

Question 15

Lehigh Pharmaceuticals packages one of its products in tamper-proof containers and performs quality control inspections on the product. Prior to sealing, Lehigh inserts cotton in the containers. For Lehigh, would these activities generally be classified as value-added (VA) or non-value-added (NVA)?

Accepted Answer

The answer of Lehigh Pharmaceuticals packages one of its products...

Question 16

Use the following information to answer questions 
Woller Meat Packing produces frozen hamburgers and sausages. During 2010, the company incurred $600,000 of overhead. Overhead costs and their related cost drivers are as follows:
 
-If Woller uses direct labor hours to assign overhead to products, how much overhead will be assigned to each product (rounded to the nearest cent)?
Hamburgers &emsp; Sausages

Accepted Answer

A)  $0.12 &emsp; $0.23 
B)  $0.17 &emsp; $0.17 
C)  $0.25 &emsp; $0.30 
D)  $0.30 &emsp; $0.38 
E)  $0.55 &emsp; $0.65

Question 17

Businesses should eliminate or minimize activities that, from the customer's perspective, add the most time, least cost, and most value.

Accepted Answer

A) True 
 B)False

Question 18

A process map provides information about how an activity affects various functional areas in an organization.

Accepted Answer

A) True 
 B)False

Question 19

Activity-based costing usually indicates that large costs are associated with products that are produced in large quantities.

Accepted Answer

A) True 
 B)False

Question 20

Use the following information to answer questions 
Woller Meat Packing produces frozen hamburgers and sausages. During 2010, the company incurred $600,000 of overhead. Overhead costs and their related cost drivers are as follows:
 
-If Woller uses activity-based costing, what is the per-unit profit margin for sausages (round to the nearest cent)?

Accepted Answer

A)  $0.27 
B)  $0.40 
C)  $0.45 
D)  $0.82 
E)  $1.04

Exam 14: Activity-Based Management and Performance Measurementreward

Each balanced scorecard section should indicate specific measurements that would help assess the organization's progress toward its short-run goals and objectives.

Treating a batch level cost as though it were a unit level cost will cause too much overhead to be allocated to the products that are produced in large quantities.

Business-value-added activities provide value to the organization and its customers.

Use the following information to answer questions Following are Greyson Corporation's 2010 year-end balance sheet and 2010 income statements. ‪ -What is Greyson's 2010 profit margin?

Use the following information to answer questions Seguin Corp. just invested $3,750,000 in new blu-ray technology. Revenues realized from the investment during the period were $3,125,000 and expenses were $2,500,000. -What is the profit margin for the new technology?

A profit center manager is responsible for revenue generation and return on assets.

The process of invoicing customers for amounts owed is a

Use the following information to answer questions Dexter PC estimates sales of 20,000 tool kits at $35 per tool kit in June. During June, 15,000 tool kits were sold for total revenue of $705,000. -What is the sales volume variance?

As the level of responsibility goes lower in an organization, performance measurements should become more job specific.

A balance scorecard will contain measures that are

Lehigh Pharmaceuticals packages one of its products in tamper-proof containers and performs quality control inspections on the product. Prior to sealing, Lehigh inserts cotton in the containers. For Lehigh, would these activities generally be classified as value-added (VA) or non-value-added (NVA)?

Businesses should eliminate or minimize activities that, from the customer's perspective, add the most time, least cost, and most value.

A process map provides information about how an activity affects various functional areas in an organization.

Activity-based costing usually indicates that large costs are associated with products that are produced in large quantities.