Info
Warning
Danger
/ Homework Answers / Accounting / 31.How performance evaluated for a cost center?   A. Actual costs incurred compared

Question

31.How is performance evaluated for a cost center? 
 

A. Actual costs incurred compared to budgeted costs.

B. Actual segment margin compared to budgeted segment margin.

C. Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment.

D. None of these.

32.How is performance evaluated for a profit center? 
 

A. Actual costs incurred compared to budgeted costs.

B. Actual segment margin compared to budgeted segment margin.

C. Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment.

D. None of these.

33.How is performance evaluated for an investment center? 
 

A. Actual costs incurred compared to budgeted costs.

B. Actual segment margin compared to budgeted segment margin.

C. Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment.

D. None of these.

34._____________ allows managers to focus their attention on maximizing an amount of earnings above a minimum required ROI: 
 

A. Optimization

B. The DuPont model

C. Residual income

D. Transfer pricing

35.ROI used to evaluate the performance of an investment center manager can sometimes lead to suboptimization. A performance measure designed to avoid the risk of suboptimization is: 
 

A. operating income.

B. residual income.

C. segment income.

D. the DuPont model.

36.The term transfer price refers to: 
 

A. The price at which a product or service is sold to a government entity.

B. The price at which a product or service is sold by one segment to another related segment.

C. The price at which a product or service is sold by a segment to an outside party.

D. None of these.

37.A favorable materials quantity variance would occur if: 
 

A. more material is purchased than is used.

B. actual pounds of materials used were less than the standard pounds allowed.

C. actual labor hours used was greater than the standard labor hours allowed.

D. actual pounds of materials used was greater than the standard pounds allowed.

38.April Corporation developed the following per-unit standards for its product: 2 pounds of direct materials at $3.75 per pound. Last month, 2,000 pounds of direct materials were purchased for $7,600. The direct materials price variance for last month was: 
 

A. $3,800 favorable.

B. $200 favorable.

C. $100 unfavorable.

D. $200 unfavorable.

39.A set of integrated financial and operating performance measures that communicate an organization's priorities associated with achieving strategic goals is known as a: 
 

A. balancedscorecard.

B. segment report.

C. responsibility report.

D. master budget.


Essay Questions

40.Patrick Company manufactures a single product. The original budget for April was based on expected production of 12,000 units; actual production for April was 10,600 units. The original budget and actual costs for the manufacturing department are shown below:

  

Prepare an appropriate performance report for the manufacturing department. 
 




15-1

Solution
5 (1 Ratings )

Solved
Accounting 1 Month Ago 499 Views
This Question has Been Answered!
Premium Content -

Unlimited Access

Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Better Grades!

Ask an Expert

Our Experts can answer your tough homework and study questions
124306 Accounting Questions Answered!
Post a Question

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
17,475 Accounting Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (16634 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!