Managerial Accounting Questions Test 3 Pannell

number of repeat customers a. financial b. internal business c. learning and growth d. customer

customer

percentage of on-time deliveries a. financial b. internal business c. learning and growth d. customer

customer

updating retail store lighting a. financial b. internal business c. learning and growth d. customer

customer

Which of the following are noncash expenses that will always result in differences between the budgeted operating expenses for a given period and the budgeted cash payments for the same​ period? a. depreciation expense and bad debt expense b. advertising expense and rent expense c. depreciation expense and rent expense d. advertising expense and bad debt expense

depreciation expense and bad debt expense

Fixed expenses that can be traced to the segment are called ____ a. common fixed expenses b. direct fixed expenses

direct fixed expenses

___ are included on balanced scorecards and help managers assess how well the company's objectives are being met. a. key performance indicators (KPI) b. management by exceptions

key performance indicators (KPI)

Employee turnover a. financial b. internal business c. learning and growth d. customer

learning and growth

number of employee suggestions implemented a. financial b. internal business c. learning and growth d. customer

learning and growth

provide employee training a. financial b. internal business c. learning and growth d. customer

learning and growth

updating the company's information system a. financial b. internal business c. learning and growth d. customer

learning and growth

​"Hours of employee​ training" would be a key performance indicator​ (KPI) for which of the four balanced scorecard​ perspectives? a. financial b. learning and growth c. internal business d. customer

learning and growth

managers of cost and revenue centers are at ___ levels of the organization than are managers of investment centers a. high b. lower

lower

___ is a management technique in which managers only investigate budget variances that are relatively large. a. management by exception b. cost center c. goal congruence

management by exception

The comprehensive planning document for the entire organization is called the ___ budget. a. cash b. operating c. financial d. master

master

The difference between actual results and the master budget is called the ___ a. master budget variance b. flexible budget variance

master budget variance

Which of the following is​ true? a. neither credit card nor debit card transaction fees are limited by the law b. only credit card transaction fees are limited by the law c. both credit card and debit card transaction fees are limited by the law d. only debit card transaction fees are limited by the law

only debit card transaction fees are limited by the law

A segment margin is the operating income generated by subtracting a. only common fixed expenses from a segment's contribution margin b. all expenses from a segment's sales revenue c. only direct fixed expenses from a segment's contribution margin d. all fixed expenses from a segment's contribution margin

only direct fixed expenses from a segment's contribution margin

Which of the following is false? a. outsourcing refers to having work performed overseas b. contract manufacturers are manufacturers that make products for other companies c. outsourcing decisions should take into consideration the intended use of freed capacity d. outsourcing decisions are often referred as "make or buy" decisions

outsourcing refers to having work performed overseas

Managers of various corporate-owned Holiday Inn locations a. cost center b. profit center c. revenue center d. investment center

profit center

The Barnes​ & Noble bookstore in​ Asheville, North​ Carolina, is owned by its​ parent, Barnes​ & Noble, Inc. a. cost center b. profit center c. revenue center d. investment center

profit center

The Champaign, Illinois, location of the Outback chain restaurant would be a a. profit center b. investment center c. cost center

profit center

The Floral Department at the Crowley, Texas, Kroger grocery store would be considered a a. investment center b. profit center c. cost center

profit center

The J.M. Smucker Company Store and​ Café is located in​ Orrville, Ohio. The store sells a variety of company​ products, while the​ café offers items made with ingredients from the​ Smucker's brands. a. cost center b. profit center c. revenue center d. investment center

profit center

The JCPenney store in the Oakpark Shopping Center in Kansas City is owned by The JCPenney​ Company, Inc. a. cost center b. profit center c. revenue center d. investment center

profit center

The Prepared Foods department of Whole Foods Market, Inc., would be considered an a. investment center b. profit center c. cost center

profit center

The local branch office of a national bank is considered to be a ___ a. profit center b. revenue center c. investment center

profit center

Which of the following is false? a. relevant information always differs among alternatives b. relevant information always regards the future c. sunk costs are never relevant to a decision d. relevant information is always financial in nature

relevant information is always financial in nature

Which of the following is not a valid strategy for determining a transfer​ price? a. using the market price b. using a negotiated price c. using the price set by GAAP d. using some definition of cost

using the price set by GAAP

The __ arises only because the actual volume sold differs from the volume originally anticipated in the master budget a. sales margin b. volume variance c. unfavorable variance

volume variance

Which of the following is not an advantage of​ decentralization? a. improved customer relations b. frees top management's time c. use of expert knowledge d. achieving goal congruence

achieving goal congruence

Benefits of budgeting include: a. coordination and communication b. benchmarking c. planning d. all of the above

all of the above

Companies often decentralize their operations by a. customer base b. product line c. geographic area d. all of the above

all of the above

Which of the following should be considered for special order​ decisions? a. whether the special price will be high enough to cover incremental costs of filling the order b. whether excess capacity exists c. whether the special order will affect regular sales in the long run d. all of the listed choices should be considered in special order decisions

all of the listed choices should be considered in special order decisions

Keys to making short-term decisions include which of the following? a. using a contribution margin approach that separates variable costs from fixed costs b. focusing on relevant revenues, costs, and profits c. both of the above d. none of the above

both of the above

Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue? a. budgetary slack b. participative budgeting c. strategic planning d. benchmarking

budgetary slack

Which budget reflects the​ company's plans to invest in new​ property, plant, and​ equipment? a. operating expenses budget b. cash collections budget c. capital expenditures budget d. direct materials budget

capital expenditures budget

___ shows how much sales revenue is generated with every $1.00 of assets. a. sales margin b. capital turnover c. flexible budget

capital turnover

Fixed expenses that cannot be traced to the segment are called ___ a. direct fixed expenses b. common fixed expenses

common fixed expenses

In addition to other accounting​ duties, the Financial Reporting and Control​ & Analysis Department at Progressive Insurance is responsible for performing a monthly analysis of general ledger accounts and fluctuations as a control mechanism a. cost center b. profit center c. revenue center d. investment center

cost center

Manager of the Housekeeping Department at a Holiday Inn a. cost center b. profit center c. revenue center d. investment center

cost center

Manager of the complimentary breakfast buffer at a Holiday Inn Express a. cost center b. profit center c. revenue center d. investment center

cost center

The Human Resources Department at American Greetings is responsible for hiring and training new associates. a. cost center b. profit center c. revenue center d. investment center

cost center

The Information System Department is responsible for​ designing, installing, and servicing the information systems throughout​ Kohl's Corporation. a. cost center b. profit center c. revenue center d. investment center

cost center

The legal department of a manufacturer is considered to be a ____. a. profit center b. revenue center c. cost center

cost center

The production line at the Ford Rouge plant in Dearborn, Michigan, where Ford F-150 trucks are manufactured, is considered to be a a. profit center b. investment center c. cost center

cost center

The payroll department of Kohl's Corporation, a retailer, is a ___. ___ is any segment of business whose manager is accountable for specific activities. a. cost center; responsibility center b. cost center; investment center c. revenue center; responsibility center

cost center; responsibility center

In making​ "sell as​ is" decisions, companies should consider all of the following EXCEPT​ for: a. cost incurred up to the "sell as is" decision point b. incremental costs that would be incurred by processing further c. incremental revenues that would be earned by processing further d. all of the above should be considered

cost incurred up to the "sell as is" decision point

Which of the following budgets is unique to merchandising​ companies? a. operating expenses budget b. production budget c. cost of goods sold, inventory, and purchases budget d. direct materials budget

cost of goods sold, inventory, and purchases budget

If a budgeted salary expense is higher than the actual salary expense then a ___ will result. a. favorable variance b. unfavorable variance

favorable variance

Which of the following is​ true? a. unfavorable variances should always be interpreted as "bad news" for the company b. favorable variances are variances that cause operating income to be higher than budgeted c. management by exception means that managers investigate all unfavorable variances but not all favorable variances d. favorable variances should always be interpreted as "good news" for the company

favorable variances are variances that cause operating income to be higher than budgeted

earnings per share a. financial b. internal business c. learning and growth d. customer

financial

paying quarterly dividends a. financial b. internal business c. learning and growth d. customer

financial

revenue growth rate a. financial b. internal business c. learning and growth d. customer

financial

A ___ is a budget prepared for different volume levels than that which was originally anticipated a. flexible budget b. master budget variance c. flexible budget variance

flexible budget

The difference between flexible and actual results is called the ___ a. flexible budget variance b. master budget variance

flexible budget variance

When the goals of the segment managers in a company are the same, then __ is achieved a. revenue center b. profit center c. goal congruence

goal congruence

The operating budgets culminate in the budgeted a. statement of cash flows b. statement of owners' equity c. balance sheet d. income statement

income statement

Percentage of defects discover during manufacturing a. financial b. internal business c. learning and growth d. customer

internal business

new product development time a. financial b. internal business c. learning and growth d. customer

internal business

numbers of warranties claimed a. financial b. internal business c. learning and growth d. customer

internal business

purchasing efficient production equipment a. financial b. internal business c. learning and growth d. customer

internal business

​"Number of new products​ developed" would be a key performance indicator​ (KPI) for which of the four balanced scorecard​ perspectives? a. financial b. learning and growth c. internal business d. customer

internal business

Honda North America, a division of the Honda Motor Company, is a a. profit center b. investment center c. cost center

investment center

In terms of responsibility​ centers, a large corporate division would be considered​ a(n) a. cost center b. investment center c. revenue center d. profit center

investment center

Manager of the Holiday Inn Express corporate division a. cost center b. profit center c. revenue center d. investment center

investment center

Manager of the Holiday Inn corporate division a. cost center b. profit center c. revenue center d. investment center

investment center

The 3M Company manufactures and distributes products under the​ Post-it, Scotch,​ Nexcare, and Thinsulate brand names. a. cost center b. profit center c. revenue center d. investment center

investment center

The Fairmont​ Chicago, The Fairmont Royal York in​ Toronto, and The Fairmont Orchid in Hawaii are all hotels owned by their parent​ corporation, Fairmont Hotels​ & Resorts. a. cost center b. profit center c. revenue center d. investment center

investment center

The Goodyear Tire​ & Rubber Company is one of the oldest tire companies in the world. Its geographic regions include North​ America, Europe,​ Africa, South​ America, Asia, and Australia. a. cost center b. profit center c. revenue center d. investment center

investment center

The J.M. Smucker Company headquarters, located in Orrville, Ohio, would be an a. investment center b. profit center c. cost center

investment center

The headquarters for an international consulting firm is considered to a ___ a. investment center b. profit center c. cost center

investment center

____ measures the profitability of a division relative to the of its assets. a. return on investment (ROI) b. capital turnover c. sales margin

return on investment (ROI)

Manager of Holiday Inn's central reservation office a. cost center b. profit center c. revenue center d. investment center

revenue center

The Dairy Group Account team of the Dean Foods Company is responsible for sales and servicing for the​ SUPERVALU, Target and Costco accounts. a. cost center b. profit center c. revenue center d. investment center

revenue center

The reservation office for CharterNow​ Airlines, Inc., is responsible for both Website sales and counter sales. a. cost center b. profit center c. revenue center d. investment center

revenue center

The sales manager in charge of Patagonia's Northwest sales territory oversees a a. profit center b. investment center c. revenue center

revenue center

a ___ manager is responsible for generating revenue. a. cost center b. revenue center c. profit center

revenue center

The formula for arriving at target cost is which of the​ following? a. revenue minus variable cost b. cost minus actual profit c. revenue minus actual profit d. revenue minus desired profit

revenue minus desired profit

Which of the following budgets must be prepared​ first, as it serves as a basis for most other​ budgets? a. sales budget b. operating expenses budget c. production budget d. cash budget

sales budget

___ shows how much income is generate for every $1.00 of sales a. volume variance b. sales margin c. capital turnover

sales margin

Return on investment​ (ROI) can be restated as which of the​ following? a. residual income / sales margin b. residual income x sales margin c. sales margin x capital turnover d. sales margin / capital turnover

sales margin x capital turnover

a segment margin is the a. segment's contribution margin minus direct fixed costs b. segment's contribution margin minus all fixed costs c. same as the segment's contribution margin d. segment's contribution margin minus allocated fixed costs

segment's contribution margin minus direct fixed costs

When resources are​ constrained, which of the following should be used to guide product mix​ decisions? a. the products' contribution margin b. the products' gross margin c. the products' contribution margin per unit of constraint d. the products' gross margin per unit of constraint

the products' contribution margin per unit of constraint

Which of the following is false? a. the flexible budget is prepared using the actual volume achieved during the period b. the master budget variance can be split into two components: a volume variance and a flexible budget variance c. the volume variance is due to causes other than volume d. the difference between actual results and the master budget is called the master budget variance

the volume variance is due to causes other than volume

Which is true of price-setters? a. their price approach emphasizes target costing b. they are highly competitive markets c. their pricing approach emphasizes cost-plus pricing d. their products lack uniqueness

their pricing approach emphasizes cost-plus pricing

Which of the following is true for merchants that accept payments made by​ Visa, MasterCard, and other forms of​ "plastic"? a. credit card fees are usually lower than debit card fees b. transaction fees are generally a fixed amount per month c. retail cards (such as Target and Kohl's charge cards) have similar transaction fees to those issued by Visa and MasterCard d. transaction fees should be budgeted for in the operating expenses budget

transaction fees should be budgeted for in the operating expenses budget

Which of the following is not relevant when deciding whether or not to discontinue a​ product? a. the effect of the discontinuation on the sales of the company's other products b. unavoidable fixed costs related to the product c. the product's contribution margin d. avoidable fixed costs related to the profit

unavoidable fixed costs related to the product

If budget sales revenue is greater than the actual sales revenue then a ___ will result a. favorable variance b. unfavorable variance

unfavorable variance