11Which of the following statements BEST describes
management by exception?
A)Management investigates only unfavorable variances.
B)Management investigates all variances that are exceptions to the usual trends.
C)Management investigates all variances.
D)Management investigates only variances of significant magnitude.
12Johnson Construction Materials Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has
provided the data below.
Revenue Center Performance Report
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How much is the flexible budget variance for the 40 inch pipe?
A) $10,000 U
B) $ 1,500 F
C) $ 1,850 U
D) $ 9,000 F
13Johnson Construction Materials Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the data below.
Revenue Center Performance Report
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Actual
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Flexible Budget
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Flexible
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Sales Volume
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Static
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Product type:
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Sales Revenue
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Variance
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U/F
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Budget
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Variance
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U/F
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Budget
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40 inch
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$31,500
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$30,000
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$40,000
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36 inch long
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$40,150
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$42,000
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$33,000
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36 inch short
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$36,200
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$33,000
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$30,000
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32 inch
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$19,000
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$20,000
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$28,000
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How much is the sales volume variance for the 40 inch pipe?
A) $10,000 U
B) $ 1,500 F
C) $ 1,850 U
D) $ 9,000 F
14Johnson Construction Materials Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the data below.
Revenue Center Performance Report
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Actual
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Flexible Budget
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Flexible
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Sales Volume
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Static
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Product type:
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Sales Revenue
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Variance
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U/F
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Budget
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Variance
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U/F
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Budget
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40 inch
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$31,500
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$30,000
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$40,000
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36 inch long
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$40,150
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$42,000
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$33,000
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36 inch short
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$36,200
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$33,000
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$30,000
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32 inch
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$19,000
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$20,000
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$28,000
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How much is the flexible budget variance for the 32 inch pipe?
A) $1,000 F
B) $1,000 U
C) $8,000 U
D) $8,000 F
15Johnson Construction Materials Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has
provided the data below.
Revenue Center Performance Report
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Actual
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Flexible Budget
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Flexible
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Sales Volume
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Static
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Product type:
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Sales Revenue
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Variance
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U/F
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Budget
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Variance
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U/F
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Budget
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40 inch
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$31,500
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$30,000
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$40,000
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36 inch long
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$40,150
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$42,000
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$33,000
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36 inch short
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$36,200
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$33,000
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$30,000
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32 inch
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$19,000
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$20,000
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$28,000
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How much is the sales volume variance for the 32 inch pipe?
A) $1,000 F
B) $1,000 U
C) $8,000 U
D) $8,000 F
16Johnson Construction Materials Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. Please view the partially completed performance report below:
Revenue Center Performance Report
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Actual
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Flexible Budget
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Flexible
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Sales Volume
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Static
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Product type:
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Sales Revenue
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Variance
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U/F
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Budget
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Variance
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U/F
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Budget
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40 inch
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$31,500
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$30,000
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$40,000
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36 inch long
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$40,150
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$42,000
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$33,000
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36 inch short
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$36,200
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$33,000
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$30,000
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32 inch
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$19,000
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$20,000
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$28,000
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A company uses management by exception to address flexible budget variances. On which variance would the company focus first?
A) 40 inch
B) 26 inch long
C) 36 inch short
D) 32 inch
17Tavares Manufactured Homes Company has a sales division which submits a monthly performance report as a revenue center. A partially completed performance report appears below:
Revenue Center Performance Report - $K
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Actual
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Flexible Budget
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Flexible
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Sales Volume
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Static
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Product type:
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Sales Revenue
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Variance
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U/F
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Budget
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Variance
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U/F
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Budget
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Model A
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$11,200
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$12,000
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$10,000
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Model B1
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$3,300
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$3,000
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$5,000
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Model B2
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$3,960
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$4,000
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$4,000
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Model B3
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$5,100
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$5,000
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$4,000
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How much is the flexible budget variance for Model B3?
A) $1,000 U
B) $1,000 F
C) $ 100 U
D) $ 100 F
18Tavares Manufactured Homes Company has a sales division which submits a monthly performance report as a revenue center. A partially completed performance report appears below:
Revenue Center Performance Report - $K
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Actual
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Flexible Budget
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Flexible
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Sales Volume
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Static
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Product type:
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Sales Revenue
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Variance
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U/F
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Budget
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Variance
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U/F
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Budget
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Model A
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$11,200
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$12,000
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$10,000
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Model B1
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$3,300
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$3,000
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$5,000
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Model B2
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$3,960
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$4,000
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$4,000
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Model B3
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$5,100
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$5,000
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$4,000
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How much is the sales volume variance for Model B3?
A) $1,000 U
B) $1,000 F
C) $ 100 U
D) $ 100 F
19Rockland Heavy Industries has a sales division that focuses on power cranes. The sales division is a revenue center. Below is a partially completed performance report for the month of June.
Revenue Center Performance Report - $K
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Actual
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Flexible Budget
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Flexible
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Sales Volume
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Static
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Product type:
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Sales Revenue
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Variance
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U/F
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Budget
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Variance
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U/F
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Budget
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Lightweight
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$10,900
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$11,000
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$10,000
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Heavyweight
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$9,120
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$9,000
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$10,000
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Green model
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$6,100
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$8,000
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$7,000
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Extended length
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$5,100
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$5,000
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$5,000
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Rockland uses management by exception to investigate flexible budget variances. On which of the following variances would they focus first for investigation?
A)Lightweight
B)Heavyweight
C)Green model
D)Extended length
20Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter.
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Flexible Budget
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Actual
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Flexible Budget
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Variance
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U/F
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% variance
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U/F
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Sales Revenue
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$688,000
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$700,000
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Variable expenses
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309,000
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320,000
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Contribution margin
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379,000
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380,000
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Traceable fixed expenses
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371,000
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368,000
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Division margin
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$8,000
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$12,000
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How much is the variance for sales revenue?
A)$11,000 F
B)$12,000 F
C)$12,000 U
D)$13,000 F