ACC 556 Chapter 22 Quiz (100% Score)
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Chapter 22 Quiz
Budget reports comparing actual results with planned objectives should be prepared only once a year.
A static budget is changed only when actual activity is different from the level of activity expected.
Management by exception means that management will investigate areas where actual results differ from planned results if the items are material and controllable.
Budget reports provide the feedback needed by management to see whether actual operations are on course.
The manager of an investment center can improve ROI by reducing average operating assets.
What is budgetary control?
A static budget is appropriate in evaluating a manager's performance if
What is the primary difference between a static budget and a flexible budget?
If a company plans to sell 48,000 units of product but sells 60,000, the most appropriate comparison of the cost data associated with the sales will be by a budget based on
Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are:
Fixed manufacturing costs $50,000 per month
Variable manufacturing costs $12.00 per ton of steel
Nikoto produced 40,000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?
At 18,000 direct labor hours, the flexible budget for indirect materials is $36,000. If $37,400 are incurred at 18,400 direct labor hours, the flexible budget report should show the following difference for indirect materials
Top management can control
A manager of a cost center is evaluated mainly on
Given below is an excerpt from a management performance report:
Budget Actual Difference
Contribution margin $600,000 $580,000 $20,000 U
Controllable fixed costs $200,000 $220,000 $20,000 U
The manager's overall performance
Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%.
Sales $ 1,400,000
Controllable margin 160,000
Total average assets 4,000,000
Fixed costs 100,000
What is the ROI for the year?
A measure frequently used to evaluate the performance of the manager of an investment center is
What is the goal of residual income?
Which of the following would not be considered an aspect of budgetary control?
All of the following statements are correct about management by exception except it
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