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