A) only incurs costs and does not directly generate revenues. B) incurs costs and generates revenues. C) is a responsibility center of a company which incurs losses. D) is a responsibility center which generates profits and evaluates the investment cost of earning the profit. A) only incurs costs and does not directly generate revenues. B) incurs costs and generates revenues. C) is a responsibility center of a company which incurs losses. D) is a responsibility center which generates profits and evaluates the investment cost of earning the profit.

A) is prepared before the master budget. B) is relevant both within and outside the relevant range. C) eliminates the need for a master budget. D) is a series of static budgets at different levels of activity. A) is prepared before the master budget. B) is relevant both within and outside the relevant range. C) eliminates the need for a master budget. D) is a series of static budgets at different levels of activity.

Pippen Co.recorded operating data for its shoe division for the year.The company's desired return is 5%. $\begin{array} { l r } \text { Sales } & \$ 1,000,000 \\ \text { Contribution margin } & 200,000 \\ \text { Total direct fixed costs } & 120,000 \\ \text { Average total operating assets } & 400,000 \end{array}$ Which one of the following reflects the controllable margin for the year?

A) 20% B) 50% C) $60000 D) $80000 A) 20% B) 50% C) $60000 D) $80000

Exam 15: Planning for Capital Investments

Chambers Inc.uses flexible budgets.At normal capacity of 16000 units budgeted manufacturing overhead is: $64000 variable and $180000 fixed.If Chambers had actual overhead costs of $250000 for 18000 units produced what is the difference between actual and budgeted costs?

(Multiple Choice)

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Question 41

The foreign subsidiary of a large corporation is

(Multiple Choice)

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Question 42

At zero direct labor hours in a flexible budget graph the total budgeted cost line intersects the vertical axis at $30000.At 15000 direct labor hours a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90000.Fixed and variable costs may be expressed as:

(Multiple Choice)

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Question 43

Best Shingle's budgeted manufacturing costs for 50000 squares of shingles are: Fixed manufacturing costs $\quad \$ 12,000$ Variable manufacturing costs $\quad \$ 16.00$ per square Best produced 40000 squares of shingles during March.How much are budgeted total manufacturing costs in March?

(Multiple Choice)

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Question 44

Trails and Paths Inc.had average operating assets of $6000000 and sales of $3000000 in 2022.If the controllable margin was $600000 the ROI was

(Multiple Choice)

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Question 45

A cost center

(Multiple Choice)

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Question 46

Controllable margin is subtracted from controllable fixed costs to get net income for a profit center.

(True/False)

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Question 47

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

(True/False)

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Question 48

Sales results that are evaluated by a static budget might show 1. favorable differences that are not justified. 2. unfavorable differences that are not justified.

(Multiple Choice)

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Question 49

If costs are not responsive to changes in activity level then these costs can be best described as

(Multiple Choice)

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Question 50

Of the following choices which contain both a traceable fixed cost and a common fixed cost?

(Multiple Choice)

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Question 51

Most direct fixed costs are not controllable by the profit center manager.

(True/False)

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Question 52

The flexible budget

(Multiple Choice)

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Question 53

Pippen Co.recorded operating data for its shoe division for the year.The company's desired return is 5%. Sales \ 1,000,000 Contribution margin 200,000 Total direct fixed costs 120,000 Average total operating assets 400,000 Which one of the following reflects the controllable margin for the year?

(Multiple Choice)

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Question 54

A distinction should be made between controllable and noncontrollable costs when reporting information under responsibility accounting.

(True/False)

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Question 55

For June Gold Corp.estimated sales revenue at $600000.It pays sales commissions that are 4% of sales.The sales manager's salary is $285000 estimated shipping expenses total 1% of sales and miscellaneous selling expenses are $15000.How much are budgeted selling expenses for the month of July if sales are expected to be $540000?

(Multiple Choice)

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Question 56

Which responsibility centers generate both revenues and costs?

(Multiple Choice)

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Question 57

The best measure of the performance of the manager of a profit center is the

(Multiple Choice)

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Question 58

Which one of the following would be the same total amount on a flexible budget and a static budget if the activity level is different for the two types of budgets?

(Multiple Choice)

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Question 59

A cost is considered controllable at a given level of managerial responsibility if

(Multiple Choice)

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Question 60

Showing 41 - 60 of 127

Chambers Inc.uses flexible budgets.At normal capacity of 16000 units budgeted manufacturing overhead is: $64000 variable and $180000 fixed.If Chambers had actual overhead costs of $250000 for 18000 units produced what is the difference between actual and budgeted costs?

The foreign subsidiary of a large corporation is

At zero direct labor hours in a flexible budget graph the total budgeted cost line intersects the vertical axis at $30000.At 15000 direct labor hours a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90000.Fixed and variable costs may be expressed as:

Best Shingle's budgeted manufacturing costs for 50000 squares of shingles are: Fixed manufacturing costs $\quad \$ 12,000$ Variable manufacturing costs $\quad \$ 16.00$ per square Best produced 40000 squares of shingles during March.How much are budgeted total manufacturing costs in March?

Trails and Paths Inc.had average operating assets of $6000000 and sales of $3000000 in 2022.If the controllable margin was $600000 the ROI was

A cost center

Controllable margin is subtracted from controllable fixed costs to get net income for a profit center.

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

Sales results that are evaluated by a static budget might show 1. favorable differences that are not justified. 2. unfavorable differences that are not justified.

If costs are not responsive to changes in activity level then these costs can be best described as

Of the following choices which contain both a traceable fixed cost and a common fixed cost?

Most direct fixed costs are not controllable by the profit center manager.

The flexible budget

Pippen Co.recorded operating data for its shoe division for the year.The company's desired return is 5%. Sales \ 1,000,000 Contribution margin 200,000 Total direct fixed costs 120,000 Average total operating assets 400,000 Which one of the following reflects the controllable margin for the year?

A distinction should be made between controllable and noncontrollable costs when reporting information under responsibility accounting.

Which responsibility centers generate both revenues and costs?

The best measure of the performance of the manager of a profit center is the

Which one of the following would be the same total amount on a flexible budget and a static budget if the activity level is different for the two types of budgets?

A cost is considered controllable at a given level of managerial responsibility if

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

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