This file of ACC 560 Week 7 Quiz 10 shows the solutions to the following problems:<\/b><\/p>\n
1. Budget reports comparing actual results with planned objectives should be prepared only once a year.<\/p>\n
2. If actual results are different from planned results, the difference must always be investigated by management to achieve effective budgetary control.<\/p>\n
3. Certain budget reports are prepared monthly, whereas others are prepared more frequently depending on the activities being monitored.<\/p>\n
4. The master budget is not used in the budgetary control process.<\/p>\n
5. A master budget is most useful in evaluating a manager’s performance in controlling costs.<\/p>\n
6. A static budget is one that is geared to one level of activity.<\/p>\n
7. A static budget is changed only when actual activity is different from the level of activity expected.<\/p>\n
8. A static budget is most useful for evaluating a manager’s performance in controlling variable costs.<\/p>\n
9. A flexible budget can be prepared for each of the types of budgets included in the master budget.<\/p>\n
10. A flexible budget is a series of static budgets at different levels of activities.<\/p>\n
11. Flexible budgeting relies on the assumption that unit variable costs will remain constant within the relevant range of activity.<\/p>\n
12. Total budgeted fixed costs appearing on a flexible budget will be the same amount as total fixed costs on the master budget.<\/p>\n
13. A flexible budget is prepared before the master budget.<\/p>\n
14. The activity index used in preparing a flexible budget should not influence the variable costs that are being budgeted.<\/p>\n
15. A formula used in developing a flexible budget is: Total budgeted cost = fixed cost + (total variable cost per unit ? activity level).<\/p>\n
16. Flexible budgets are widely used in production and service departments.<\/p>\n
17. A flexible budget report will show both actual and budget cost based on the actual activity level achieved.<\/p>\n
18. Management by exception means that management will investigate areas where actual results differ from planned results if the items are material and controllable.<\/p>\n
19. Policies regarding when a difference between actual and planned results should be investigated are generally more restrictive for noncontrollable items than for controllable items.<\/p>\n
20. A distinction should be made between controllable and noncontrollable costs when reporting information under responsibility accounting.<\/p>\n
21. Cost centers, profit centers, and investment centers can all be classified as responsibility centers.<\/p>\n
22. More costs become controllable as one moves down to each lower level of managerial responsibility.<\/p>\n
23. In a responsibility accounting reporting system, as one moves up each level of responsibility in an organization, the responsibility reports become more summarized and show less detailed information.<\/p>\n
24. A cost center incurs costs and generates revenues and cost center managers are evaluated on the profitability of their centers.<\/p>\n
25. The terms “direct fixed costs” and “indirect fixed costs” are synonymous with “traceable costs” and “common costs,” respectively.<\/p>\n
26. Controllable margin is subtracted from controllable fixed costs to get net income for a profit center.<\/p>\n
27. The denominator in the formula for calculating the return on investment includes operating and nonoperating assets.<\/p>\n
28. The formula for computing return on investment is controllable margin divided by average operating assets.<\/p>\n
29. When evaluating residual income, the calculation tells management what percentage return was generated by the particular division being evaluated.<\/p>\n
30. Residual income generates a dollar amount which represents the increase in value to the company beyond the cost necessary to pay for the financing of assets.<\/p>\n
31. Budget reports provide the feedback needed by management to see whether actual operations are on course.<\/p>\n
32. A static budget is an effective means to evaluate<\/p>\n","protected":false},"excerpt":{"rendered":"
This file of ACC 560 Week 7 Quiz 10 shows the solutions to the following problems: 1. Budget reports comparing actual results with planned objectives should be prepared only once a year. 2. If actual results are different from planned 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-49030","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49030","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=49030"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49030\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=49030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=49030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=49030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}