Exam 16: Management Control Systems

If production was budgeted at 400 units and the actual production was 420 units, what would be the flexible budget variance for materials if the actual cost of materials was £4,150 and the budgeted cost per unit is £10?

Figure 16-2 Glenn, SA., has done a cost analysis for its production of T-shirts. The following activities and cost drivers have been developed: Following are the actual costs of producing 75,000 T-shirts: 5,000 machine hours; 10 batches; 20 purchase orders -Refer to Figure 16-2. What is the budget variance for setups in an activity-based performance report?

Goal congruence means

Figure 16-5 Torino, SA., manufactures machine parts. Torino has developed a static budget for its plant at an activity level of 10,000 direct labour hours for the month of March. The actual level of activity was 11,000 hours. The following table summarizes the static budget and the actual costs for March: -Which of the following departments would NOT be classified as a profit centre?

Participative budgeting offers which of the following advantages?

Figure 16-1 Armati, SA., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, SA., had the following budgeted data: The following actually occurred: -Refer to Figure 16-1. The static budget variance for total fixed overhead is

Figure 16-1 Armati, SA., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, SA., had the following budgeted data: The following actually occurred: -Refer to Figure 16-1. The flexible budget for direct materials cost in 2011 is

Identify and discuss the key features that a budgetary system should have to encourage managerial, goal-congruent behaviour.

Figure 16-5 Torino, SA., manufactures machine parts. Torino has developed a static budget for its plant at an activity level of 10,000 direct labour hours for the month of March. The actual level of activity was 11,000 hours. The following table summarizes the static budget and the actual costs for March: -A manager of a profit centre:

If production was budgeted at 400 units and the actual production was 420 units, what would be the static budget variance for materials if the actual cost of materials was £4,150 and the budgeted cost per unit is £10?

Which of the following is NOT an advantage of participative budgeting?

Figure 16-5 Torino, SA., manufactures machine parts. Torino has developed a static budget for its plant at an activity level of 10,000 direct labour hours for the month of March. The actual level of activity was 11,000 hours. The following table summarizes the static budget and the actual costs for March: -Which cost centre listed below is evaluated with the aid of flexible budgets drawn up for the actual level of activity?

Figure 16-5 Torino, SA., manufactures machine parts. Torino has developed a static budget for its plant at an activity level of 10,000 direct labour hours for the month of March. The actual level of activity was 11,000 hours. The following table summarizes the static budget and the actual costs for March: -Refer to Figure 16-5. What is the flexible budget variance for March?

Which budget should be used to determine how efficiently managers controlled costs?

Figure 16-1 Armati, SA., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, SA., had the following budgeted data: The following actually occurred: -Refer to Figure 16-1. The static budget variance for direct materials is

Which of the following is not an essential element of responsibility accounting?

Riemay, SA., has done a cost analysis for its production of sports cards. The following activities and cost drivers have been developed: Following are the actual costs of producing 35,000 cards: 60 labour hours; 500 machine hours; 5 batches; 30 purchase orders The following variances were given in the activity performance report: Required: Find the missing values. Prepare an activity-based performance report in good form

Timothy, SA., uses a flexible budget for overhead costs. The company expects to produce 40,000 units of the product it manufactures. Each unit requires 0.40 direct labour hours. The cost formulas for each of the four overhead items (where X is measured in direct labour hours) is as follows: Required: a. Prepare an overhead budget for the expected activity level for the coming year. b. Prepare an overhead budget that reflects production that is 25 per cent lower than expected.

Define responsibility accounting and describe four types of responsibility centres.

Figure 16-1 Armati, SA., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, SA., had the following budgeted data: The following actually occurred: -Refer to Figure 16-1. The flexible budget variance for total cost for 2011 is