Chapter 10, Problem 10.15SE

Use vocabulary terms (Learning Objectives 1, 2, 3, 4, 5, & 6)

Complete the following statements with one of the terms listed here. You may use a term more than once. Some terms may not be used at all.

Capital turnover	Direct fixed expenses	Flexible budget variance
Key performance indicators (KPIs)	Profit center	Sales margin
Common fixed expenses	Favorable variance	Goal congruence
Management by exception	Return on investment (ROI)	Unfavorable variance
Cost center	Flexible budget	Investment center
Master budget variance	Revenue center	Volume variance

1. a. Fixed expenses that can be traced to the segment are called __________.
2. b. __________ shows how much income is generated for every $1.00 of sales.
3. c. __________ are included on balanced scorecards and help managers assess how well the company’s objectives are being met.
4. d. The difference between actual results and the master budget is called the __________.
5. e. When the goals of the segment managers in a company are the same, then __________ is achieved.
6. f. The local branch office of a national bank is considered to be a(n) __________.
7. g. Fixed expenses that cannot be traced to the segment are called __________.
8. h. A(n) __________is a budget prepared for a different volume level than that which was originally anticipated.
9. i. The difference between the flexible budget and actual results is called the __________.
10. j. __________measures the profitability of a division relative to the size of its assets.
11. k. If budgeted salary expense is higher than the actual salary expense, then a(n) __________will result.
12. l. A(n) __________manager is responsible for generating revenue.
13. m. The __________arises only because the actual volume sold differs from the volume originally anticipated in the master budget.
14. n. __________shows how much sales revenue is generated with every $1.00 of assets.
15. ○.       If budgeted sales revenue is greater than the actual sales revenue, then a(n) __________will result.
16. p. __________is a management technique in which managers only investigate budget variances that are relatively large.
17. q. The legal department of a manufacturer is considered to be a(n) __________.
18. r. The headquarters for an international consulting firm is considered to be a(n) __________.