exam 4 Flashcards
ch. 10, 11, 15
Which is one of the potential disadvantages of decentralization?
A.
Struggle to achieve goal congruence
B.
Does not value the use of expert knowledge
C.
Decreases customer relations
D.
Reduces motivation and job retention
A.
Struggle to achieve goal congruence
Johnson & Johnson’s Consumer Healthcare Division that manufactures and sells products including Band-Aid, Neutrogena, and Listerine is most likely treated as a(n)
A.
profit center.
B.
investment center.
C.
cost center.
D.
revenue center.
B.
investment center.
Decentralization would typically not be based on:
A.
product line.
B.
total revenues.
C.
geographic line.
D.
customer base.
B.
total revenues.
Which type of variance causes operating income to be higher than the budgeted operating income?
A.
Neutral variance
B.
Any variance
C.
Favorable variance
D.
Unfavorable variance
C.
Favorable variance
The basic principle of management by exception would indicate that a manager should investigate which of the following variances?
A.
All favorable variances exceeding the budgeted amount
B.
All variances that are greater than a budgeted and actual dollar amount (or percentage)
C.
All variances regardless of the size of the variance
D.
All unfavorable variances exceeding the budgeted amount
B.
All variances that are greater than a budgeted and actual dollar amount (or percentage)
What will happen to return on investment (ROI) if total assets decrease while everything else remains the same?
A.
ROI will increase over time.
B.
The direction of the impact cannot be determined without further information.
C.
ROI will not be affected by the decrease in total assets.
D.
ROI will decrease over time.
A.
ROI will increase over time.
Which of the following is a disadvantage of financial performance measures such as return on investment (ROI) and residual income?
A.
Cannot be used in a balanced scorecard
B.
Not readily understood by managers
C.
Cannot be used to evaluate division performance
D.
Focus on short-term performance
D.
Focus on short-term performance
Which performance measurement tool is most likely to cause goal incongruence between division managers and the corporate headquarters?
A.
Return on investment (ROI)
B.
Residual income
C.
Balanced scorecard
D.
All of the choices are equally likely to cause goal incongruence
A.
Return on investment (ROI)
If the sales revenue volume variance is favorable, then it is likely that
A.
more units were actually sold than the company had originally budgeted to sell.
B.
the expenses of the company were more than the amount of expenses that the company had budgeted.
C.
the expenses of the company were less than the amount of expenses that the company had budgeted.
D.
fewer units were actually sold than the company had anticipated.
A.
more units were actually sold than the company had originally budgeted to sell.
Which perspective of the balanced scorecard would number of repeat customers be?
A.
Customer
B.
Internal business
C.
Financial
D.
Learning and growth
A.
Customer
The controller wants to prepare a chart of monthly operating income from the past two years. What chart would likely be most appropriate?
A.
Line chart
B.
Scatter plot
C.
Pie chart
D.
Bar chart
A.
Line chart
Hosbach Corporation expects no waste and no inefficiencies in the production process. This type of standard is referred to as a(n)
A.
ideal standard.
B.
practical standard.
C.
efficiency standard.
D.
realistic standard.
A.
ideal standard.
calculation for standard cost of input
standard quantity * standard price
A company receives an unusually high number of orders. To complete all the orders on time, the company pays employees an extra $10 per hour for every hour of overtime the employees work. Which of the following variances will be directly impacted?
A.
Direct materials price variance
B.
Direct materials quantity variance
C.
Direct labor efficiency variance
D.
Direct labor rate variance
D.
Direct labor rate variance
What two variances make up the direct labor variance?
A.
Price variance and efficiency variance
B.
Rate variance and efficiency variance
C.
Rate variance and price variance
D.
Price variance and usage variance
B.
Rate variance and efficiency variance
The unemployment rate has increased over the past year. Allison Company finds that it is able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago. Which of the following variances will be directly impacted?
A.
Direct labor efficiency variance
B.
Direct labor rate variance
C.
Direct materials price variance
D.
Direct materials efficiency variance
B.
Direct labor rate variance
what is the calculation for DL rate variance?
actual hours * (actual rate - standard rate)
what is the calculation for DM price variance?
actual quantity purchased*(actual price - standard price)
what is the calculation for actual direct labor rate?
shandard DL rate per hour - favorable labor rate variance
At lean companies, employees tend to be multiskilled and cross-trained to perform a variety of tasks. These workers are valued by management and are considered to be part of the team rather than a labor force to be handled and controlled. Consequently, this
A.
decreases the importance of direct labor standards.
B.
increases the importance of direct labor standards.
C.
Both of the above
D.
None of the above
A.
decreases the importance of direct labor standards.
Shareholders, special interest groups, employees, customers, bankers, suppliers, policy makers, and community members can all be considered to be
A.
constraints.
B.
regulators.
C.
stakeholders.
D.
none of the above.
C.
stakeholders.
Which of the following is a reason an organization would pursue sustainability initiatives?
A.
To satisfy shareholder demands
B.
To reduce costs
C.
To improve competitive position
D.
All of the above
D.
All of the above
Extended producer responsibility (EPR) laws that require manufacturers to take back a large percentage of their products at the end of the products’ life is an example of which type of reason to implement sustainable initiatives?
A.
Cost reduction
B.
Regulatory compliance
C.
Stakeholder influence
D.
Competitive strategy
B.
Regulatory compliance
Which of the following factors is not part of the triple bottom line?
A.
Planet
B.
People
C.
Profit
D.
Productivity
D.
Productivity
whats the direct materials costs calculation?
pounds of direct materials used * cost per pound of direct materials
whats the direct labor costs?
direct hours used * hourly pay rate
what is the calculation for MOH rate?
estimated total MOH costs/estimated total machine hours
what is the calculation for manufacturing overhead?
machine hours used * MOH rate
what is the calculation for activity cost allocation rate?
total estimated machine maintance cost * total estimate machine hours
what is the calculation for contribution margin per unit?
sales price per unit - variable cost per unit
what is the calculation for breakeven sales in units?
(fixed expenses + operating income) / CM per unit
Another name for a report containing sustainability information is a(an):
A.
environmental, social, and governance (ESG) report.
B.
corporate social responsibility (CSR) report.
C.
Both a. and b. are correct.
D.
Neither a. or b. is correct.
C.
Both a. and b. are correct.
Which of the following organizations is working to develop and/or improve sustainability reporting?
A.
IMA
B.
FASB
C.
GRI
D.
AICPA
C.
GRI
The topic of child labor would address sustainability by which of the GRI standpoints?
A.
Financial
B.
Economic
C.
Environmental
D.
Social
D.
Social
The topic of energy would address sustainability by which of the GRI standpoints?
A.
Social
B.
Environmental
C.
Financial
D.
Economic
B.
Environmental
All of the following represent monetary information in an environmental management accounting system except
A.
cost of metals used in manufacturing products.
B.
cost to upgrade factory to use renewable energy sources.
C.
costs of running a laboratory aimed at developing recyclable product materials.
D.
gallons of waste water generated.
D.
gallons of waste water generated.
Which of the following tools can be used to help to justify investments in sustainability?
A.
Social return on investment (SROI)
B.
Investment appraisals that include traditionally ignored factors related to sustainability
C.
Life-cycle assessment (LCA)
D.
All of the above
D.
All of the above
Which of the following is a reason that managers in an organization would use dashboards?
A.
Teams can be focused on the same goals as represented by metrics on the dashboard.
B.
Data can be consolidated from several sources.
C.
Insights can be gained through charts and other visuals.
D.
All the listed items are reasons to use dashboards.
D.
All the listed items are reasons to use dashboards.
