Which of the following is TRUE about a flexible budget?
ANSWER
INCORRECT
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A flexible budget is prepared for the same level of volume as the one originally planned.
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YOU WERE SURE AND INCORRECT
A manager would never use a flexible budget for performance evaluation at the end of a period.
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THE CORRECT ANSWER
A manager compares actual results against a flexible budget.
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A manager uses a variance budget to plan for uncertainties instead of a flexible budget.
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I DON'T KNOW YET
A manager compares actual results against a flexible budget is a true statement. A manager uses a flexible budget to plan for uncertainties instead of a variance budget. A flexible budget is prepared for a different level of volume than the one originally planned. A manager would use a flexible budget for performance evaluation at the end of a period.
The internal business perspective of the balanced scorecard focuses on ________.
ANSWER
INCORRECT
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THE CORRECT ANSWER
incorporating innovation, operations, and post-sales support
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YOU WERE SURE AND INCORRECT
using a continuous processes to increase profits through increases in revenue, cost control, and productivity increases
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customer demands which include price, quality, sales service, and delivery time
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employee capabilities, information system capabilities, and the company’s climate for action
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I DON'T KNOW YET
The internal business perspective of the balanced scorecard focuses on incorporating innovation, operations, and post-sales support.
The learning and growth perspective of the balanced scorecard focuses on employee capabilities, information system capabilities, and the company’s climate for action.
The financial perspective of the balanced scorecard is a continuous process to increase profits through increases in revenue, cost control, and productivity increases.
The customer perspective of the balanced scorecard focuses on customer demands which include price, quality, sales service, and delivery time.
________ compares actual revenues and expenses against budgeted figures.
ANSWER
INCORRECT
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The technique of management by exception
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THE CORRECT ANSWER
A performance report
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YOU WERE SURE AND INCORRECT
A favorable variance
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An unfavorable variance
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I DON'T KNOW YET
A performance report compares actual revenues and expenses against budgeted figures.
A favorable variance is one that causes operating income to be higher than budgeted.
An unfavorable variance is one that causes operating income to be lower than budgeted.
Management by exception is the technique that refers to the concept that a manager will only investigate budget variances that are relatively large.
The ________ perspective of the balanced scorecard focuses on incorporating innovation, operations, and post-sales support.
ANSWER
INCORRECT
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customer
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learning and growth
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YOU WERE SURE AND INCORRECT
financial
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THE CORRECT ANSWER
internal business
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I DON'T KNOW YET
The internal business perspective of the balanced scorecard focuses on incorporating innovation, operations, and post-sales support.
The learning and growth perspective of the balanced scorecard focuses on employee capabilities, information system capabilities, and the company’s climate for action.
The financial perspective of the balanced scorecard is a continuous process to increase profits through increases in revenue, cost control, and productivity increases.
The customer perspective of the balanced scorecard focuses on customer demands which include price, quality, sales service, and delivery time.
______ include(s) those fixed expenses that can be traced to a profit center.
ANSWER
INCORRECT
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Segment margin
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THE CORRECT ANSWER
Direct fixed expenses
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A variance
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YOU WERE SURE AND INCORRECT
Common fixed expenses
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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.
The difference between actual and budget for a specific revenue or cost is known as a variance.
________ include(s) those fixed expenses that can be traced to a profit center.
ANSWER
INCORRECT
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Segment margin
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THE CORRECT ANSWER
Direct fixed expenses
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A variance
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YOU WERE SURE AND INCORRECT
Common fixed expenses
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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.
The difference between actual and budget for a specific revenue or cost is known as a variance.
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