Budgetary Control and Responsibility
 
  1. Question: Budgetary control involves all but one of the following:

    A
    modifying future plans.

    B
    analysis differences.

    C
    using static budgets.

    D
    determining differences between actual and planned result.

    Note: Not available
    1. Report
  2. Question: A static budget is useful in controlling costs when cost behaviour is:

    A
    mixed.

    B
    fixed.

    C
    variable.

    D
    linear.

    Note: Not available
    1. Report
  3. Question: At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30,000. At 10,000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90,000. Fixed and variable costs may be expresses as:

    A
    $30,000 fixed plus $6 per direct labor hour variable.

    B
    $30,000 fixed plus $9 per direct labor hour variable.

    C
    $60,000 fixed plus $3 per direct labor hour variable.

    D
    $60,000 fixed plus $6 per direct labor hour variable.

    Note: Not available
    1. Report
  4. Question: At 9,000 direct labor hours, the flexible budget for indirect materials is $27,000. If $28,000 of indirect materials costs are incurred at 92,00 direct labor hours, the flexible budget report should show the following difference for indirect materials:

    A
    $1000 unfavorable.

    B
    $1000 favourable.

    C
    $400 favourable.

    D
    $400 unfavourable.

    Note: Not available
    1. Report
  5. Question: Under responsibility accounting, the evaluation of a manager's performance is based on matters that the manager:

    A
    directly controls.

    B
    directly and indirectly controls.

    C
    indirectly controls.

    D
    All.

    Note: Not available
    1. Report
  6. Question: Responsibility centers include:

    A
    cost centers.

    B
    profit centers.

    C
    investment centers.

    D
    All

    Note: Not available
    1. Report
  7. Question: Responsibility reports for cost centers:

    A
    distinguish between fixed and variable costs.

    B
    use static budget data.

    C
    include both controllable and noncontrollable costs.

    D
    include only controllable costs.

    Note: Not available
    1. Report
  8. Question: In a responsibility report for a profit center, controllable fixed costs are deducted from contribution margin to show:

    A
    profit center margin.

    B
    controllable margin.

    C
    net income.

    D
    income from operation.

    Note: Not available
    1. Report
  9. Question: In a formula for return on investment (RIO), the factors for controllable margin and operating assets are respectively:

    A
    controllable margin percentage and total operating assets.

    B
    controllable margin dollars and average operating assets.

    C
    controllable margin dollars and total assets.

    D
    controllable margin percentage and average operating assets.

    Note: Not available
    1. Report
  10. Question: A manager of an investment center can improve ROI by:

    A
    reducing sales.

    B
    increasing variable costs.

    C
    reducing variable and/or controllable fixed costs.

    D
    increasing average operating assets.

    Note: Not available
    1. Report
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