Chapter 22 Quiz\tQuestion 1\t\u00a0\tBudget reports comparing actual results with planned objectives should be prepared only once a year.\tQuestion 2\t\u00a0\tA static budget is changed only when actual activity is different from the level of activity expected.\tQuestion 3\t\u00a0\tManagement by exception means that management will investigate areas where actual results differ from planned results if the items are material and controllable.\tQuestion 4\t\u00a0\tBudget reports provide the feedback needed by management to see whether actual operations are on course.\tQuestion 5\t\u00a0\tThe manager of an investment center can improve ROI by reducing average operating assets.\tQuestion 6\t\u00a0\tWhat is budgetary control?\tQuestion 7\t\u00a0\tA static budget is appropriate in evaluating a manager’s performance if\tQuestion 8\t\u00a0\tWhat is the primary difference between a static budget and a flexible budget?\tQuestion 9\t\u00a0\tIf 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\tQuestion 10\t\u00a0\tNikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are:\t\tFixed manufacturing costs \ufffd \ufffd\u00a0 $50,000 per month\tVariable manufacturing costs \ufffd\u00a0 $12.00 per ton of steel\t\tNikoto produced 40,000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?\tQuestion 11\t\u00a0\tAt 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\t\u00a0\tQuestion 12 \tTop management can control\tQuestion 13\t\u00a0\tA manager of a cost center is evaluated mainly on\tQuestion 14 \tGiven below is an excerpt from a management performance report:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0 \u00a0\u00a0Budget\u00a0 \ufffd \ufffd \ufffd\u00a0\u00a0Actual\u00a0\u00a0\u00a0\u00a0 \ufffd \ufffd \ufffd\u00a0Difference\u00a0\u00a0\u00a0 \t\tContribution margin \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 $600,000 \ufffd \ufffd \ufffd $580,000 \ufffd\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0$20,000\u00a0 U\tControllable fixed costs \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 $200,000 \ufffd \ufffd \ufffd $220,000 \ufffd \ufffd\u00a0\u00a0 $20,000\u00a0 U\t\u00a0\tThe manager’s overall performance\tQuestion 15 \tBogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%.\t\u00a0\tSales \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 $ 1,400,000\tControllable margin \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 160,000\tTotal average assets \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 4,000,000\tFixed costs \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0100,000\t\u00a0\tWhat is the ROI for the year?\tQuestion 16\t\u00a0\tA measure frequently used to evaluate the performance of the manager of an investment center is\tQuestion 17 \tWhat is the goal of residual income?\tQuestion 18\t\u00a0\tWhich of the following would not be considered an aspect of budgetary control?\tQuestion 19\t\u00a0\tAll of the following statements are correct about management by exception except it\t\u00a0Question 20 \tMatch the items below by entering the appropriate code letter in the space provided.<\/p>\n","protected":false},"excerpt":{"rendered":"
Chapter 22 Quiz Question 1 \u00a0 Budget reports comparing actual results with planned objectives should be prepared only once a year. Question 2 \u00a0 A static budget is changed only when actual activity is different from the level of activity Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200176","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200176"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200176\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}