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202 accounting Quiz on topics 4, created by stevensae on 04/05/2015.

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Question 1 of 30

1

The purpose of a flexible budget is to:

Select one of the following:

  • remove items from performance reports that are not controllable by managers.

  • permit managers to reduce the number of unfavorable variances that are reported.

  • update the static planning budget to reflect the actual level of activity of the period.

  • reduce the amount of conflict between departments when the master budget is prepared

Explanation

Question 2 of 30

1

A static budget:

Select one of the following:

  • should be compared to actual costs to assess how well costs were controlled.

  • should be compared to a flexible budget to assess how well costs were controlled

  • is valid for only one level of activity.

  • represents the best way to set spending targets for managers

Explanation

Question 3 of 30

1

In computing the margin in a ROI analysis, which of the following is used?

Select one of the following:

  • Sales in the denominator

  • Net operating income in the denominator

  • Average operating assets in the denominator

  • Residual income in the denominator

Explanation

Question 4 of 30

1

Which of the following will not result in an increase in the residual income, assuming other factors remain constant?

Select one of the following:

  • An increase in sales

  • An increase in the minimum required rate of return

  • A decrease in expenses

  • A decrease in operating assets

Explanation

Question 5 of 30

1

All other things the same, which of the following would increase residual income?

Select one of the following:

  • Increase in average operating assets

  • Decrease in average operating assets

  • Increase in minimum required return

  • Decrease in net operating income

Explanation

Question 6 of 30

1

Which of the following three statements are correct?

Select one or more of the following:

  • A profit center has control over both cost and revenue

  • An investment center has control over invested funds, but not over costs and revenue

  • A cost center has no control over sales.

Explanation

Question 7 of 30

1

The purpose of the Data Processing Department of Falena Corporation is to assist the various departments of the corporation with their information needs free of charge. The Data Processing Department would best be evaluated as a:

Select one or more of the following:

  • Cost center

  • Revenue center

  • profit center

  • investment center

Explanation

Question 8 of 30

1

Actual Revenues > Budgeted Revenues

Select one or more of the following:

  • Favorable

  • Unfavorable

Explanation

Question 9 of 30

1

Actual Revenues < Budgeted Revenues

Select one or more of the following:

  • Favorable

  • Unfavorable

Explanation

Question 10 of 30

1

Actual Expenses > Budgeted Expenses

Select one or more of the following:

  • Favorable

  • Unfavorable

Explanation

Question 11 of 30

1

Actual Expenses < Budgeted Expenses

Select one or more of the following:

  • Favorable

  • Unfavorable

Explanation

Question 12 of 30

1

For Costs:

Select one or more of the following:

  • (+)Unfavorable
    (-) Favorable

  • (-)Unfavorable
    (+)Favorable

Explanation

Question 13 of 30

1

For Sales:

Select one or more of the following:

  • (+)favorable
    (-)unfavorable

  • (-)favorable
    (+)unfavorable

Explanation

Question 14 of 30

1

Final, delivered cost of materials, net of discounts

Select one or more of the following:

  • Price Standards

  • Quality Standards

Explanation

Question 15 of 30

1

Use product design specifications

Select one or more of the following:

  • Price Standards

  • Product standards

  • Rate Standards

  • Activity Standards

Explanation

Question 16 of 30

1

Use wage surveys and labor contracts

Select one or more of the following:

  • Rate Standards

  • Time Standards

  • Quality Standards

  • Price Standards

Explanation

Question 17 of 30

1

Use time and motion studies for each labor operation

Select one or more of the following:

  • Time standards

  • Rate standards

  • Activity Standards

  • Price standards

Explanation

Question 18 of 30

1

The activity is the base used to calculate the POH

Select one or more of the following:

  • Activity Standards

  • Rate standards

  • Price standards

  • Quality Standards

Explanation

Question 19 of 30

1

Which variance involves the quantity purchased?

Select one or more of the following:

  • Price Variance

  • Quantity Variance

Explanation

Question 20 of 30

1

Which variance involves quantity used?

Select one or more of the following:

  • Price Variance

  • Quantity variance

Explanation

Question 21 of 30

1

Who is generally responsible for rate variances?

Select one or more of the following:

  • Production Managers

  • Purchasing Managers

  • General Managers

Explanation

Question 22 of 30

1

Segment whose manager has control over both costs and revenues, but no control over investment funds.

Select one or more of the following:

  • Cost Center

  • Profit Center

  • Investment Center

Explanation

Question 23 of 30

1

Segment who's manager has control over costs, revenues, and investments in operating assets

Select one or more of the following:

  • Cost Center

  • Profit Center

  • Investment Center

Explanation

Question 24 of 30

1

The Cost, Profit and Investment Centers all fall under what Center

Select one or more of the following:

  • Responsibility

  • Managerial

  • Planning

  • Budgeting

Explanation

Question 25 of 30

1

Income before interest and taxes

Select one or more of the following:

  • Net operating income

  • real income

  • average operating assets

  • none of the above

Explanation

Question 26 of 30

1

What falls under "average operating assets"

Select one or more of the following:

  • Cash

  • Accounts Recievable

  • Inventory

  • Plant & Equipment

  • Income

  • Revenues

Explanation

Question 27 of 30

1

ROI=

Select one or more of the following:

  • Net operating income/average operating income

  • Average operating income/net operating income

  • Sales/net operating income

  • average operating income/sales

  • Margin x Turnover

Explanation

Question 28 of 30

1

What are 3 ways to improve ROI

Select one or more of the following:

  • Increase Sales

  • Reduce Expenses

  • Reduce assets

  • Decrease sales

  • Increase assets

Explanation

Question 29 of 30

1

Margin=

Select one or more of the following:

  • Net operating income/average operating assets

  • sales/assets

  • Net operating income/sales

  • Average operating assets/sales

Explanation

Question 30 of 30

1

Turnover=

Select one or more of the following:

  • Net operating income/average operating assets

  • Sales/net operating income

  • average operating assets/sales

  • sales/average operating assets

Explanation

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