Exam 10: Budgetary Control and Responsibility Accounting

The denominator in the formula for return on investment calculation is

A static budget is usually appropriate in evaluating a manager's effectiveness in controlling

If a company plans to sell 48,000 units of product but sells 60,000, the most appropriate comparison of the cost data associated with the sales will be by a budget based on

The denominator in the formula for calculating the return on investment includes operating and nonoperating assets.

The maintenance department of a manufacturing company is a(n)

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 $30,000, assuming fixed costs are held constant?

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

Under management by exception, which differences between planned and actual results should be investigated?

Las Sendas, Inc. had average operating assets of $4,000,000 and sales of $2,000,000 in 2016. If the controllable margin was $600,000, the ROI was

For June, Gold Corp. estimated sales revenue at $600,000. It pays sales commissions that are 4% of sales. The sales manager's salary is $285,000, estimated shipping expenses total 1% of sales, and miscellaneous selling expenses are $15,000. How much are budgeted selling expenses for the month of July if sales are expected to be $540,000?

In the formula for ROI, idle plant assets are

Benet Division of United Refinery Company's operating results include: controllable margin, $200,000; sales $2,200,000; and operating assets, $800,000. The Benet Division's ROI is 25%. Management is considering a project with sales of $100,000, variable expenses of $60,000, fixed costs of $40,000; and an asset investment of $150,000. Should management accept this new project?

Rhein Manufacturing recorded operating data for its auto accessories division for the year. Sales \ 750,000 Contribution margin 150,000 Total direct fixed costs 90,000 Average total operating assets 400,000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30,000, assuming fixed costs are held constant?

In the Dichter Co., indirect labor is budgeted for $72,000 and factory supervision is budgeted for $24,000 at normal capacity of 160,000 direct labor hours. If 180,000 direct labor hours are worked, flexible budget total for these costs is

Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are: Fixed manufacturing costs $\quad \quad \$ 50,000$ per month Variable manufacturing costs $\quad \$ 12.00$ per ton of steel Nikoto produced 40,000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?

The activity index used in preparing a flexible budget should not influence the variable costs that are being budgeted.

Which of the following would not be considered an aspect of budgetary control?

A responsibility report for a profit center will

The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is called