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ACC 241 Exam 3 CH 9, 10, 11|40 Questions with Verified Answers,100% CORRECT
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ACC 241 Exam 3 CH 9, 10, 11|40 Questions with Verified Answers
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ACC 241 Exam 3 CH 9, 10, 11|40 Questions with VerifiedAnswers
Budgeting assists management in which of the following areas? - CORRECT
ANSWER -Motivation
-Planning and setting objectives
-Performance measurement
Which of the following is an advantage of the budgeting process? - CORRECT
ANSWER -Budgeting provides a standard for performance evaluation
-Budgeting provides resource information for decision making
-Budgeting improves communication and coordination within the organization
When an organization involves its many employees in the budgeting process in a
meaningful way, the organization is said to be using: - CORRECT ANSWER
Participative budgeting
"Responsibility accounting" is the concept that says: - CORRECT ANSWER
Managers should be held responsible for only those things under their control
The manager of a profit center should not be responsible for which of the
following types of decisions? - CORRECT ANSWER Deciding whether or not their
segment should purchase additional machinery
Which type of manager would most likely be held responsible for the return on
investment (ROI) of his segment? - CORRECT ANSWER Investment center
A company has computed that their "margin" is .18. Which of the following
statements is the best interpretation of these results? - CORRECT ANSWER $.18 of
every $1 made in sales is profit
A positive result that stems from the use of return on investment (ROI) is that it
encourages managers to focus on - CORRECT ANSWER -The relationship among
sales, expenses, and investment
, -Operating asset efficiency
-The efficient use of resources in generating income
-Cost efficiency
Division A had ROI of 15% last year. The manager of Division A is considering an
additional investment for the coming year. What step will the manager likely
choose to take? - CORRECT ANSWER Reject the investment if it returns less than
15% ROI
Which of the following is a disadvantage of a focus on return on investment? -
CORRECT ANSWER It can produce a narrow focus on divisional profitability at the
expense of profitability for the overall firm
If the ROI of a project is greater than the target rate of return, the residual income
will be - CORRECT ANSWER Greater than zero
A favorable labor efficiency variance is created when: - CORRECT ANSWER Actual
hours worked are less than the standard hours allowed.
Hayden Corp. has a $6,000 favorable flexible budget variance for January. If
January's flexible budget net income was $100,000, which of the following
statements is true? - CORRECT ANSWER Hayden's actual net income must have
been $106,000
Court Company has an unfavorable materials price variance. Which of the
following would be the LEAST likely reason for this variance? - CORRECT ANSWER
The company used more material than was budgeted for in each unit
An unfavorable materials usage variance could result from - CORRECT ANSWER
Not efficiently utilizing raw materials, thus causing waste
A favorable labor efficiency variance could result from - CORRECT ANSWER Using
higher quality materials that result in fewer inspections
A favorable materials price variance could result from - CORRECT ANSWER
Purchasing identical materials from another supplier at a lower price.
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