BUS143 Chapter 22&23 Quiz
Popping, illegal services, research and development, in human resources are most likely to be classified as ____ centers
Discretionary cost
T or F: According to GAAP, performance measurement reports must be consistent among the organization. They may show non financial information but are required to include financial information as well
False
Kelly Smith is the manager. She is accountable for generating net income in making decisions concerning asset allocation. Kelly is in charge of a _____ center.
investment
Residual income =
net income minus (desired return on investment x invested assets)
Who should set standards?
All of the above
Responsibility accounting classifies data according to
Areas of responsibility
Net income / invested assets =
Return on investment
The top of the variance analysis is as followed: AHxAR AHxSR SHxSR. Which of the following cannot be calculated from this analysis? a. Price variance b. Time variance c. rate variance d. all can be calculated
a. Price variance
A ____ is an evaluation tool that takes into consideration Financial and nonfinancial measures. It's basic model includes financial, customer, internal process, In innovation And learning measures
balanced scorecard
Businesses that are separated into two or more manageable units have authority and responsibility for operations are said to be
decentralized
All of the following our advantage of decentralization except a. expertise in all areas of business is difficult. Decentralization makes it better to delegate certain responsibilities b. managers make better decisions when closer to the operation of the company c. each decentralized operation purchases their own assets and pays for operating costs d. decentralized managers can respond quickly to customer satisfaction and quality service
each decentralized operation purchases their own assets and pays for operating costs
When actual costs are less than standard cost, a(n) ___variance exists
favorable
Tonya is a store manager for target Is in charge of a(n) _____ center.
profit
Which of the following would not be classified as a nonfinancial performance measure
profit margin
As predetermined production cost that Is used for management planning and control is called a ____ cost
standard
The difference between a company actual performance and their budgeted performance is known as
variance