Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
5th Edition
ISBN: 9780134642093
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
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 |
Key performance indicators (KPIs) | Profit center | Sales margin |
Common fixed expenses | Favorable variance | Goal congruence |
Management by exception | Unfavorable variance | |
Cost center | Flexible budget | Investment center |
Revenue center | Volume variance |
- a. Fixed expenses that can be traced to the segment are called __________.
- b. __________ shows how much income is generated for every $1.00 of sales.
- c. __________ are included on balanced scorecards and help managers assess how well the company’s objectives are being met.
- d. The difference between actual results and the master budget is called the __________.
- e. When the goals of the segment managers in a company are the same, then __________ is achieved.
- f. The local branch office of a national bank is considered to be a(n) __________.
- g. Fixed expenses that cannot be traced to the segment are called __________.
- h. A(n) __________is a budget prepared for a different volume level than that which was originally anticipated.
- i. The difference between the flexible budget and actual results is called the __________.
- j. __________measures the profitability of a division relative to the size of its assets.
- k. If budgeted salary expense is higher than the actual salary expense, then a(n) __________will result.
- l. A(n) __________manager is responsible for generating revenue.
- m. The __________arises only because the actual volume sold differs from the volume originally anticipated in the master budget.
- n. __________shows how much sales revenue is generated with every $1.00 of assets.
- ○. If budgeted sales revenue is greater than the actual sales revenue, then a(n) __________will result.
- p. __________is a management technique in which managers only investigate budget variances that are relatively large.
- q. The legal department of a manufacturer is considered to be a(n) __________.
- r. The headquarters for an international consulting firm is considered to be a(n) __________.
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Indicate whether the item below is used as key performance indicators for the areas of (A) Financial, (B) Customer, (C) Internal Process, or (D) Learning and Growth performance. Choose the one best choice.
Quantity variance on a cost report *(A) Financial(B) Customer(C) Internal Process(D) Learning and Growth performance.
The first step of the budget process is:
plan
direct
control
feedback
Static budget are often used by:
production department.
administrative departments.
responsible centers.
capital projects.
A budget serves as a benchmark against which
Actual results can be compared.
Allocated results can be compared.
Actual results become inconsequential.
Allocated results become inconsequential.
The following are characteristics of an effective budget, EXCEPT:
Goals should be attainable.
Evaluations should be made carefully with opportunities to explain any failures.
They should be properly applied to avoid negative effects.
Customers affected by a budget should be consulted when it is prepared.
Which of the following is NOT a benefit of budgeting?
It forces managers to look to the future.
It plays an important role in communication within the organization.
It serves an important role in motivating and rewarding employees.
It encourages executives to build up organizational slack.…
Estimating the effects of changes in budget assumptions, such as determining the impact of an increase or decrease in sales, is called:
Question 4 options:
static budget analysis.
sensitivity analysis.
variance analysis,
cost reduction analysis.
(Ch 10) An advantage of a flexible budget is that it:
Question 5 options:
allows comparison of actual costs to master (static) budget costs.
considers only variable costs.
allows comparisons of actual costs to the costs that should have been incurred, given the level of sales.
allows management freedom in meeting profitability goals.
Chapter 10 Solutions
Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
Ch. 10 - (Learning Objective 1) Companies often...Ch. 10 - (Learning Objective 1) Which of the following is...Ch. 10 - (Learning Objective 1) In terms of responsibility...Ch. 10 - (Learning Objective 2) Which of the following is...Ch. 10 - (Learning Objective 2) A segment margin is the...Ch. 10 - Prob. 6QCCh. 10 - Prob. 7QCCh. 10 - Prob. 8QCCh. 10 - Prob. 9QCCh. 10 - Prob. 10QC
Ch. 10 - Identify and understand responsibility centers...Ch. 10 - Identify types of responsibility centers (Learning...Ch. 10 - Identify centralized and decentralized...Ch. 10 - Prob. 10.4SECh. 10 - Prob. 10.5SECh. 10 - Prob. 10.6SECh. 10 - Calculate ROI (Learning Objective 3) Refer to Epic...Ch. 10 - Prob. 10.8SECh. 10 - Prob. 10.9SECh. 10 - Prob. 10.10SECh. 10 - Prob. 10.11SECh. 10 - Interpret a performance report (Learning Objective...Ch. 10 - Prob. 10.13SECh. 10 - Classify KPIs by balanced scorecard perspective...Ch. 10 - Use vocabulary terms (Learning Objectives 1, 2, 3,...Ch. 10 - Prob. 10.16SECh. 10 - Identify type of responsibility center (Learning...Ch. 10 - Complete and analyze a performance report...Ch. 10 - Prepare a segment margin performance report...Ch. 10 - Compute and interpret the expanded ROI equation...Ch. 10 - Prob. 10.21AECh. 10 - Prob. 10.22AECh. 10 - Comparison of ROI and residual income (Learning...Ch. 10 - Prob. 10.24AECh. 10 - Comprehensive flexible budget problem (Learning...Ch. 10 - Prepare a flexible budget performance report...Ch. 10 - Work backward to find missing values (Learning...Ch. 10 - Construct a balanced scorecard (Learning Objective...Ch. 10 - Sustainability and the balanced scorecard...Ch. 10 - Identify type of responsibility center (Learning...Ch. 10 - Complete and analyze a performance report...Ch. 10 - Prob. 10.32BECh. 10 - Prob. 10.33BECh. 10 - Prob. 10.34BECh. 10 - Prob. 10.35BECh. 10 - Prob. 10.36BECh. 10 - Prob. 10.37BECh. 10 - Prob. 10.38BECh. 10 - Prob. 10.39BECh. 10 - Prob. 10.40BECh. 10 - Prob. 10.41BECh. 10 - Sustainability and the balanced scorecard...Ch. 10 - Prepare a budget with different volumes for...Ch. 10 - Prepare and interpret a performance report...Ch. 10 - Prob. 10.45APCh. 10 - Prob. 10.46APCh. 10 - Prob. 10.47APCh. 10 - Evaluate subunit performance (Learning Objectives...Ch. 10 - Prob. 10.49BPCh. 10 - Prob. 10.50BPCh. 10 - Evaluate divisional performance (Learning...Ch. 10 - Prob. 10.52BPCh. 10 - Determine transfer price at a manufacturer under...Ch. 10 - Evaluate subunit performance (Learning Objectives...Ch. 10 - Prob. 10.55SC
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