Exam 16: Management Control Systems

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 supervision for 2011 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 rent in 2011 is

Classics, SA., uses a flexible budget for overhead costs. The company expects to produce 20,000 units of the product it manufactures. Half of the units require 0.50 direct labour hours per unit. The remainder requires 0.75 direct labour hours per unit. The cost formulas for each of the four overhead items 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 10 per cent higher than expected.

Figure 16-3 Harald, SA., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed: Following are the actual costs of producing 85,000 stickers: 5,000 machine hours; 10 batches; 20 purchase orders -Refer to Figure 16-3. What is the budget variance for setups in an activity-based performance report?

Figure 16-3 Harald, SA., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed: Following are the actual costs of producing 85,000 stickers: 5,000 machine hours; 10 batches; 20 purchase orders -Refer to Figure 16-3. What is the budget variance for purchasing in an activity-based performance report?

The static budget variance for materials is £200 F and the budgeted cost for materials is £52,000. If the budgeted volume is 13,000 and the actual volume is 13,500, then the flexible budget variance is

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 is likely to be evaluated as a discretionary cost centre?

Figure 16-4 Villafane, SA., has done a cost analysis for its production of decals. The following activities and cost drivers have been developed: Following are the actual costs of producing 35,000 decals: 1,000 machine hours; 5 batches; 30 purchase orders The following variances were given in the activity performance report: -Refer to Figure 16-4. What is the actual cost of setups?

Controllable costs are those that a manager

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: -What results could be expected by placing pressure on management to perform at certain levels?

Which of the following is NOT a key feature of an ideal budgetary system?

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 purchasing in an activity-based performance report?

Flexible budgets do NOT provide

An example of a negative incentive is

Which of the following is NOT a potential disadvantage of participative budgeting?

Which of the following is NOT a key feature of an ideal budgetary system?

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 for March?

Figure 16-3 Harald, SA., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed: Following are the actual costs of producing 85,000 stickers: 5,000 machine hours; 10 batches; 20 purchase orders -Refer to Figure 16-3. What is the budget variance for maintenance in an activity-based performance report?

The budget most appropriate for control purposes is the

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 total costs in an activity-based performance report?