Complete the following statements with one of the terms listed here. You may use a term more than once. Some terms may not be used at all.

Complete the following statements with one of the terms listed here. You may use a term more than once. Some terms may not be used at all.

Capital turnover		Direct fixed expenses	Flexible budget variance
Key performance indicators  (KPIs)		Profit center	Sales margin
Common fixed expenses		Favorable variance	Goal congruence
Management by exception		Return on Investment  (ROI)	Unfavorable variance
Cost center		Flexible budget	Investment center
Master budget variance		Revenue center	Volume variance
a.	Fixed expenses that can be traced to the segment are called direct fixed expenses .

b.	Sales margin shows how much income is generated for every  $1.00 of sales.
c.	Key performance indicators (KPIs) are included on balanced scorecards and help managers assess how well the  company's objectives are being met.

d.	The difference between actual results and the master budget is called the master budget variance .
e.	When the goals of the segments managers in a company are the  same, then goal congruence is achieved.

f.	The local branch office of a national bank is considered to be  a(n) profit center .
g.	Fixed expenses that cannot be traced to the segment are called common fixed expenses .

h.	A(n) flexible budget is a budget prepared for a different volume level than that which was originally anticipated.
i.	The difference between the flexible budget and actual results is called the flexible budget variance .

j.	Return on Investment (ROI) measures the profitability of a division relative to the size of its assets.
k.	If budgeted salary expense is higher than the actual salary  expense, then  a(n) favorable variance will result.

l.	A(n) revenue center manager is responsible for generating revenue.
m.	The volume variance arises only because the actual volume sold differs from the volume originally anticipated in the master budget.

n.	Capital turnover shows how much sales revenue is generated with every  $1.00 of assets.
o.	If budgeted sales revenue is greater than the actual sales  revenue, then  a(n) unfavorable variance will result.

p.	Management by exception is a management technique in which managers only investigate budget variances that are relatively large.
q.	The legal department of a manufacturer is considered to be  a(n) cost center .

r.	The headquarters for an international consulting firm is considered to be  a(n) investment center .