Direct fixed expenses ________.
ANSWER
INCORRECT
·
THE CORRECT ANSWER
include those fixed expenses that can be traced to a profit center
·
is the operating income generated by a profit or investment center before subtracting common fixed costs that have been allocated to the center
·
YOU WERE SURE AND INCORRECT
is the difference between actual and budget for a specific revenue or expense
·
include expenses that cannot be traced to the profit center
·
I DON'T KNOW YET
Direct fixed expenses include those fixed expenses that can be traced to a profit center.
Segment margin is the operating income generated by a profit or investment center before subtracting common fixed costs that have been allocated to the center.
Common fixed expenses include expenses that cannot be traced to the profit center.
A variance is the difference between actual and budget for a specific revenue or expense.
Which of the following is TRUE about a responsibility center?
ANSWER
INCORRECT
·
Higher-level managers budget and control costs of a single value-chain function only.
·
THE CORRECT ANSWER
Lower-level managers report to higher-level managers who have broader responsibilities.
·
YOU WERE SURE AND INCORRECT
Managers do NOT plan and control activities.
·
Higher-level managers who report to lower-level managers have fewer responsibilities.
·
I DON'T KNOW YET
Lower-level managers who report to higher-level managers have broader responsibilities is a TRUE statement about a responsibility center. In a responsibility center, lower-level managers budget and control costs of a single value-chain function, lower-level managers report to higher-level managers who have broader responsibilities, and the manager may also forecast and direct activities.
The learning and growth perspective of the balanced scorecard focuses on ________.
ANSWER
correct
·
using a continuous process to increase profits through increasing revenue, controlling costs, and increases in productivity
·
incorporation of innovation, operations, and post-sales support
·
YOU WERE SURE AND CORRECT
employee capabilities, information system capabilities, and the company’s climate for action
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customer demands which include price, quality, sales service, and delivery time
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I DON'T KNOW YET
Which of the following choices is NOT correct about master budget variance reporting?
ANSWER
correct
·
A favorable flexible budget variance ($7,000 F) and an unfavorable volume variance ($11,500 U) could be netted to an unfavorable master budget variance of $4,500 U.
·
A favorable flexible budget variance ($2,000 F) and an unfavorable volume variance ($2,500 U) could be netted to an unfavorable master budget variance of $500 U.
·
A favorable flexible budget variance ($3,000 F) and an unfavorable volume variance ($3,600 U) could be netted to an unfavorable master budget variance of $600 U.
·
YOU WERE SURE AND CORRECT
A favorable flexible budget variance ($6,000 F) and an unfavorable volume variance ($11,500 U) could be netted to an unfavorable master budget variance of $17,500 U.
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I DON'T KNOW YET
_______ include(s) expenses that cannot be traced to the profit center.
ANSWER
INCORRECT
·
Segment margin
·
Direct fixed expenses
·
YOU WERE SURE AND INCORRECT
A variance
·
THE CORRECT ANSWER
Common fixed expenses
·
I DON'T KNOW YET
Common fixed expenses include expenses that cannot be traced to the profit center.
Direct fixed expenses include those fixed expenses that can be traced to a profit center.
Segment margin is the operating income generated by a profit or investment center before subtracting common fixed costs that have been allocated to the center.
A variance is the difference between actual and budget for a specific revenue or expense.
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