Monte Inc. recorded operating data for its Sandtrap division for the year. Monte requires its return to be 9%. \[\begin{array} { l r } \text { Sales } & \$ 1,000,000 \\ \text { Controllable margin } & 180,000 \\ \text { Total average assets } & 600,000 \\ \text { Fixed costs } & 60,000 \end{array}\] How much is ROI for the year?

A) 10% B) 17% C) 20% D) 30% A) 10% B) 17% C) 20% D) 30%

A flexible budget is appropriate for $\begin{array} { l c c } & \text { Direct Labor Costs } & \text { Manufacturing Overhead Costs } \\\end{array}$ A)$\begin{array} { l c c } &&& \text { No } &&&&&&&&&& \text { No } \\\end{array}$ B) $\begin{array} { l c c } &&& \text { Yes } &&&&&&&&&& \text { Yes } \\\end{array}$ C)$\begin{array} { l c c } &&& \text { Yes } &&&&&&&&&& \text { No } \\\end{array}$ D) $\begin{array} { l c c } &&& \text { No } &&&&&&&&&& \text { Yes } \end{array}$

The answer of A flexible budget is appropriate for \(\begin{array}...

The master budget of Windy Co. shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity the following manufacturing overhead costs are expected: \[\begin{array} { l r } \text { Indirect labor } & \$ 720,000 \\ \text { Machine supplies } & 180,000 \\ \text { Indirect materials } & 210,000 \\ \text { Depreciation on factory building } & 150,000 \\ \text { Total manufacturing overhead } & \$ 1,260,000 \end{array}\] A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of

A) $1482000. B) $1260000. C) $1512000. D) $1362000. A) $1482000. B) $1260000. C) $1512000. D) $1362000.

Naples Inc. recorded operating data for its shoe division for the year. \[\begin{array} { l r } \text { Sales } & \$ 750,000 \\ \text { Contribution margin } & 135,000 \\ \text { Total fixed costs } & 90,000 \\ \text { Average total operating assets } & 300,000 \end{array}\] How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30000 assuming fixed costs are held constant?

A) 25% B) 18% C) 45% D) 12% A) 25% B) 18% C) 45% D) 12%

Exam 24: Budgetary Control and Responsibility Accounting

Trails and Paths Inc. had average operating assets of $6000000 and sales of $3000000 in 2016. If the controllable margin was $600000 the ROI was

(Multiple Choice)

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Question 161

An advantage of the return on investment ratio is that no judgmental factors are involved.

(True/False)

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Question 162

Management by exception

(Multiple Choice)

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Question 163

A major aspect of budgetary control is the use of budget reports that compare _ with ___.

(Short Answer)

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Question 164

A static budget is appropriate in evaluating a manager's performance if

(Multiple Choice)

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Question 165

Moss Corp. reported the following items for 2016: Instructions Compute the controllable margin for 2016.

(Short Answer)

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Question 166

Monte Inc. recorded operating data for its Sandtrap division for the year. Monte requires its return to be 9%. Sales \ 1,000,000 Controllable margin 180,000 Total average assets 600,000 Fixed costs 60,000 How much is ROI for the year?

(Multiple Choice)

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Question 167

A flexible budget is appropriate for Direct Labor Costs Manufacturing Overhead Costs A) No No B) Yes Yes C) Yes No D) No Yes

(Short Answer)

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Question 168

The comparison of differences between actual and planned results

(Multiple Choice)

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Question 169

If actual results are different from planned results the difference must always be investigated by management to achieve effective budgetary control.

(True/False)

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Question 170

A flexible budget depicted graphically

(Multiple Choice)

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Question 171

The terms "direct fixed costs" and "indirect fixed costs" are synonymous with "traceable costs" and "common costs" respectively.

(True/False)

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Question 172

What budgeted amounts appear on the flexible budget?

(Multiple Choice)

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Question 173

The master budget of Windy Co. shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity the following manufacturing overhead costs are expected: Indirect labor \ 720,000 Machine supplies 180,000 Indirect materials 210,000 Depreciation on factory building 150,000 Total manufacturing overhead \ 1,260,000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of

(Multiple Choice)

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Question 174

Management by exception

(Multiple Choice)

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Question 175

The master budget is not used in the budgetary control process.

(True/False)

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Question 176

Naples Inc. recorded operating data for its shoe division for the year. Sales \ 750,000 Contribution margin 135,000 Total fixed costs 90,000 Average total operating assets 300,000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30000 assuming fixed costs are held constant?

(Multiple Choice)

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Question 177

A static budget is changed only when actual activity is different from the level of activity expected.

(True/False)

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Question 178

Danner Co. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. Operating Data Women's Shoes Men's Shoes Children's Shoes Contribution margin \ 280,000 (3) \ 220,000 Controllable fixed costs 130,000 (4) (5) Controllable margin (1) \ 90,000 96,000 Sales 800,000 480,000 (6) Variable costs (2) 330,000 250,000 Instructions (a) Compute the missing amounts. Show computations. (b) Prepare a responsibility report for the Women's Shoe Division assuming (1) the data are for the month ended June 30 2016 and (2) all data equal budget except variable costs which are $20000 over budget.

(Essay)

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Question 179

Return on investment is calculated by dividing _ by .

(Short Answer)

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Question 180

Exam 24: Budgetary Control and Responsibility Accounting

Trails and Paths Inc. had average operating assets of $6000000 and sales of $3000000 in 2016. If the controllable margin was $600000 the ROI was

An advantage of the return on investment ratio is that no judgmental factors are involved.

Management by exception

A major aspect of budgetary control is the use of budget reports that compare _____________________ with _______________________.

A static budget is appropriate in evaluating a manager's performance if

Moss Corp. reported the following items for 2016: Instructions Compute the controllable margin for 2016.

Monte Inc. recorded operating data for its Sandtrap division for the year. Monte requires its return to be 9%. Sales \ 1,000,000 Controllable margin 180,000 Total average assets 600,000 Fixed costs 60,000 How much is ROI for the year?

A flexible budget is appropriate for Direct Labor Costs Manufacturing Overhead Costs A) No No B) Yes Yes C) Yes No D) No Yes

The comparison of differences between actual and planned results

If actual results are different from planned results the difference must always be investigated by management to achieve effective budgetary control.

A flexible budget depicted graphically

The terms "direct fixed costs" and "indirect fixed costs" are synonymous with "traceable costs" and "common costs" respectively.

What budgeted amounts appear on the flexible budget?

Management by exception

The master budget is not used in the budgetary control process.

A static budget is changed only when actual activity is different from the level of activity expected.

Return on investment is calculated by dividing _________________________ by ________________________.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters

A major aspect of budgetary control is the use of budget reports that compare _ with ___.

Return on investment is calculated by dividing _ by .