Question : 158.              A static budget report appropriate for a.fixed manufacturing costs. b.fixed selling : 1311875

 

 

158.              A static budget report is appropriate for

a.fixed manufacturing costs.

b.fixed selling and administrative expenses.

c.variable selling and administrative expenses.

d.both fixed manufacturing costs and fixed selling and administrative expenses.

 

 

159.              Sydney, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is $128,000 variable and $360,000 fixed. If Sydney had actual overhead costs of $500,000 for 18,000 units produced, what is the difference between actual and budgeted costs?

a.$4,000 unfavorable

b.$4,000 favorable

c.$12,000 unfavorable

d.$16,000 favorable

 

 

160.              To develop the flexible budget, management takes all of the following steps except identify the

a.activity index and the relevant range of activity.

b.variable costs and determine the budgeted variable cost per unit.

c.fixed costs and determine the budgeted fixed cost per unit.

d.All of these options are steps in developing the flexible budget.

 

 

161.              A flexible budget is appropriate for

Direct Labor CostsManufacturing Overhead Costs

a.NoNo

b.YesYes

c.YesNo

d.NoYes

 

 

162.All of the following statements are correct about management by exception except it

a.enables top management to focus on problem areas that need attention.

b.means that management has to investigate every budget difference.

c.requires that there must be some guidelines for identifying an exception.

d.means that top management’s review of a budget report is focused primarily on differences between actual results and planned objectives.

 

 

163.              Controllable costs for responsibility accounting purposes are those costs that are directly influenced by

a.a given manager within a given period of time.

b.a change in activity.

c.production volume.

d.sales volume.

 

 

164.              All of the following statements are correct about controllable costs except

a.all costs are controllable at some level of responsibility within a company.

b.all costs are controllable by top management.

c.fewer costs are controllable as one moves up to each higher level of managerial responsibility.

d.costs incurred directly by a level of responsibility are controllable at that level.

 

 

165.              Which of the following will cause an increase in ROI?

a.An increase in variable costs

b.An increase in average operating assets

c.An increase in sales

d.An increase in controllable fixed costs

 

 

166.              Costs that relate specifically to one center and are incurred for the sole benefit of that center are

a.common fixed costs.

b.direct fixed costs.

c.indirect fixed costs.

d.noncontrollable fixed costs.

 

 

167.              If controllable margin is $300,000 and the average investment center operating assets are $2,000,000, the return on investment is

a..67%.

b.6.66%.

c.20%.

d.15%.

 

 

 

 

 

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