Performance Measurement and Control Pre-Test Questions - 3348 Verified Questions

Performance Measurement and Control Pre-Test Questions https://quizplus.com/study-set/3522 24 Chapters 3348 Verified Questions

Performance Measurement and Control Pre-Test Questions Course Introduction This course explores the principles and practices of performance measurement and control within organizations. It examines various frameworks and tools used to evaluate organizational effectiveness, efficiency, and alignment of activities with strategic objectives. Students will learn to design and implement performance measurement systems,

including

balanced

scorecards,

key

performance

indicators,

and

benchmarking techniques. The course also addresses the behavioral implications of measurement

and

decision-making,

control

and

systems,

approaches

the

for

role

ensuring

of

information

in

managerial

accountability

and

continuous

improvement in dynamic business environments. Through case studies and practical applications, students will develop skills to critically assess and enhance organizational performance.

Recommended Textbook Cost Accounting A Managerial Emphasis 6th Canadian Edition by Charles T. Horngren

Available Study Resources on Quizplus 24 Chapters 3348 Verified Questions 3348 Flashcards Source URL: https://quizplus.com/study-set/3522

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Chapter 1: The Accountants Vital Role in Decision Making Available Study Resources on Quizplus for this Chatper 140 Verified Questions 140 Flashcards Source URL: https://quizplus.com/quiz/69925

Sample Questions Q1) As users of the information produced by management accounting systems, managers are forced to understand the design and operation of these systems.

A)True B)False Answer: False Q2) Developing a new web site to display and demonstrate the company's products would be part of which value chain function?

A) research and development B) design of products, services, and processes C) production D) marketing E) distribution Answer: D Q3) Control includes deciding what feedback to provide that will help with future decision making.

A)True B)False Answer: True To view all questions and flashcards with answers, click on the resource link above.

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Chapter 2: An Introduction to Cost Terms and Purposes Available Study Resources on Quizplus for this Chatper 165 Verified Questions 165 Flashcards Source URL: https://quizplus.com/quiz/69926

Sample Questions Q1) Overtime premium is always a component of direct labour.

A)True B)False Answer: False Q2) Operating income does not include interest expense and income taxes.

A)True B)False Answer: True Q3) Cost allocation is A) the process of tracking both direct and indirect costs associated to a cost object.

B) the process of determining the actual cost of the cost object.

C) the assignment of indirect costs to the chosen cost object.

D) a function of cost tracing.

E) the assignment of direct costs to the chosen cost object.

Answer: C Q4) Prime costs consist of direct and indirect manufacturing labour.

A)True B)False Answer: False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 3: Cost-Volume-Profit Analysis Available Study Resources on Quizplus for this Chatper 139 Verified Questions 139 Flashcards Source URL: https://quizplus.com/quiz/69927

Sample Questions Q1) Widget Company sells widgets for $20.00 each. The manufacturing costs, all variable, are $6 each. The company is planning on renting an exhibition booth ,for both display and selling purposes, at the annual candy convention. The company's sales manager will earn a vacation bonus if she can earn a target net income of $150,000, for the sales operation at the convention. The convention organizers provide the advertising and guarantee a certain level of traffic, in exchange for 15% of the net income. The 15% surcharge operates like a tax on net income. The company absorbs all of the fixed costs of production for the sales made at the convention.

How many widgets does the sales manager have to sell to earn the vacation bonus?

Answer: $20Q - $6Q - 0 = [$150,000 ÷ (1 - 0.15)] $14Q = $176,470.59 Q = 12,605 units Q2) The degree of operating leverage at a specific level of sales helps the managers calculate the effect that potential changes in sales will have on operating income.

A)True B)False Answer: True To view all questions and flashcards with answers, click on the resource link above.

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Chapter 4: Job Costing Available Study Resources on Quizplus for this Chatper 138 Verified Questions 138 Flashcards Source URL: https://quizplus.com/quiz/69928

Sample Questions Q1) The amount of manufacturing overhead allocated to all jobs during June 2012 totals A) $77,000.

B) $105,000.

C) $110,000.

D) $200,000.

E) $557,000.

Q2) An accounting firm provides tax consulting for estates and trusts. Their job costing system has a single direct cost category (professional labour) and a single indirect cost pool (research support). The indirect cost pool contains all the costs except direct personnel costs. All budgeted indirect costs are allocated to individual jobs using actual professional labour hours.

Required: a. Discuss the reasons a consulting firm might use normal costing in its job system rather than actual costing. b. What might be some ways for the firm to change from a one pool allocation concept?

Q3) Describe job-costing and process-costing systems. Explain when it would be appropriate to use each.

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Chapter 5: Activity-Based Costing and Management Available Study Resources on Quizplus for this Chatper 133 Verified Questions 133 Flashcards Source URL: https://quizplus.com/quiz/69929

Sample Questions Q1) Which of the following is not an activity under an ABC system?

A) an event B) a task C) a unit of work D) a process E) indirect cost Q2) If manufacturing overhead costs are considered one large cost pool and are assigned based on 10 million pages of production capacity, what is the cost driver rate?

A) $0.25 per page B) $0.05 per page C) $0.025 per page D) $0.042 per page E) $0.42 per page Q3) The estimated total manufacturing overhead costs that will be incurred in each department in the coming year are often referred to as activity cost pools.

A)True B)False Q4) Explain how a top-selling product may actually result in losses for the company.

Q5) How are cost drivers selected in activity-based costing systems?

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Chapter 6: Master Budget and Responsibility Accounting Available Study Resources on Quizplus for this Chatper 150 Verified Questions 150 Flashcards Source URL: https://quizplus.com/quiz/69930

Sample Questions Q1) Boone Hobbies budgeted purchases for next month is expected to be A) $240,000.

B) $264,000.

C) $225,000.

D) $360,000.

E) $244,000.

Q2) Frame Antique manufactures picture frames. Sales for May are expected to be 20,000 units of various sizes. Historically, the average frame requires three metres of framing, one square metre of glass, and two square metres of backing. Beginning inventory includes 3,000 metres of framing, 1,000 square metres of glass, and 1,000 square metres of backing. Current prices are $0.20 per metre of framing, $4.00 per square metre of glass, and $1.50 per square metre of backing. Ending inventory should be 150 percent of beginning inventory. Purchases are paid for in the month acquired.

Required: a. Determine the quantity of framing, glass, and backing that is to be purchased during May. b. Determine the total costs of direct materials for May purchases.

Q3) How is budgeting for a multinational corporation different than budgeting for a corporation that is strictly domestic?

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Chapter 7: Flexible Budgets, Variances, and Management Control: I Available Study Resources on Quizplus for this Chatper 146 Verified Questions 146 Flashcards Source URL: https://quizplus.com/quiz/69931

Sample Questions Q1) A favourable direct materials yield variance results when less direct materials are used than planned.

A)True B)False Q2) During February the Lungren Manufacturing Company's costing system reported several variances that the production manager was surprised to see. The following information is for the manufacture of garden gates, its only product: 1. Direct materials price variance, $800 unfavourable.

2. Direct materials efficiency variance, $1,800 favourable.

3. Direct manufacturing labour price variance, $4,000 favourable.

4. Direct manufacturing labour efficiency variance, $600 unfavourable.

Required: a. Provide the manager with some ideas as to what may have caused the price variances. b. What may have caused the efficiency variances?

Q3) An unfavourable direct materials mix variance results when cheaper direct materials are substituted for more expensive direct materials.

A)True B)False Page 9 To view all questions and flashcards with answers, click on the resource link above.

Chapter 8: Flexible Budgets, Variances, and Management Control: II Available Study Resources on Quizplus for this Chatper 137 Verified Questions 137 Flashcards Source URL: https://quizplus.com/quiz/69932

Sample Questions Q1) Delivering value to the customer requires executing activities important to the value proposition. Many of the activities cannot be evaluated by financial measures of performance. List five non-financial measures of performance applicable to the hospitality industry.

Q2) What is the variable manufacturing overhead efficiency variance?

A) $80,000 favourable B) $80,000 unfavourable C) $101,200 favourable D) $101,200 unfavourable E) $181,200 favourable Q3) Managers have found that non-financial measures provide useful information for their planning and control decisions.

A)True B)False Q4) Capacity decisions are considered operating decisions because they involve the long-term acquisition of assets by purchase or lease.

A)True B)False Page 10 Q5) How is a budgeted fixed overhead cost rate calculated?

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Chapter 9: Income Effects of Denominator Level on Inventory Valuation Available Study Resources on Quizplus for this Chatper 154 Verified Questions 154 Flashcards Source URL: https://quizplus.com/quiz/69933

Sample Questions Q1) Which of the following is correct concerning variable vs absorption costing?

A) Absorption costing income statement classifies fixed costs as period costs.

B) The absorption costing income statement combines costs by cost behaviour.

C) Absorption costing income statements need to differentiate between variable and fixed costs.

D) The difference in operating income between the two approaches is captured by the difference between fixed manufacturing costs in ending inventory minus fixed manufacturing costs in opening inventory.

E) The difference in operating income between the two approaches is captured by the difference between fixed manufacturing costs in ending inventory minus variable manufacturing costs in ending inventory.

Q2) Holding fixed cost and unit contribution margin constant, operating income rises as the level of sales rises.

A)True B)False Q3) How does the capacity level chosen to compute the budgeted fixed overhead cost rate affect the production-volume variance?

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Chapter 10: Quantitative Analyses of Cost Functions Available Study Resources on Quizplus for this Chatper 114 Verified Questions 114 Flashcards Source URL: https://quizplus.com/quiz/69934

Sample Questions Q1) The total cost at an operating level of 10,000 units would be A) $31,136.

B) $30,200.

C) $21,416 D) $42,550 E) $46,625 Q2) Simple linear regression differs from multiple linear regression in that A) multiple linear regression uses all available data to estimate the cost function whereas simple linear regression only uses simple data.

B) simple linear regression is limited to the use of only the outcome variables and multiple linear regression can use both outcome and predictor variables.

C) simple linear regression uses only one predictor variable and multiple linear regression uses more than one predictor variable.

D) simple linear regression uses only one outcome variable and multiple linear regression uses more than one outcome variable.

E) the lease squares technique cannot be used for simple linear regression whereas it can be used for multiple linear regression.

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Chapter 11: Decision Making and Relevant Information Available Study Resources on Quizplus for this Chatper 146 Verified Questions 146 Flashcards Source URL: https://quizplus.com/quiz/69935

Sample Questions Q1) For make-or-buy decisions, a supplier's ability to deliver the item on a timely basis is considered a(n) A) qualitative factor.

B) relevant cost.

C) differential factor.

D) opportunity cost.

E) quantitative factor.

Q2) What is the change in operating profits if the one-time-only special order for 1,000 units is accepted for $180 a unit by Welch?

A) $70,000 increase in operating profits B) $10,000 increase in operating profits C) $10,000 decrease in operating profits D) $75,000 decrease in operating profits E) $40,000 increase in operating profits Q3) When replacing an old machine with a new machine, the purchase price of the old machine is a relevant cost.

A)True B)False Q4) Explain what revenues and costs are relevant when choosing among alternatives.

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Chapter 12: Pricing Decisions, Product Profitability Decisions, and Cost Management Available Study Resources on Quizplus for this Chatper 135 Verified Questions 135 Flashcards Source URL: https://quizplus.com/quiz/69936

Sample Questions Q1) If Ms. Yukki wanted a long-term commitment for supplying this product, what price would most likely be quoted to her?

A) $290 B) $390 C) $260 D) $377 E) $507 Q2) What is the Satellite Inc. life cycle operating income?

A) $408,000 B) $76,000 C) $388,000 D) $348,000 E) $288,000 Q3) What is the target operating income?

A) $2,931,120 B) $2,160,000 C) $2,036,880 D) $2,484,000 E) $248,400 Page 14 Q4) What is the primary reason a firm would adopt target costing?

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Chapter 13: Strategy, Balanced Scorecard, and Profitability Analysis Available Study Resources on Quizplus for this Chatper 140 Verified Questions 140 Flashcards Source URL: https://quizplus.com/quiz/69937

Sample Questions Q1) The growth component measures the increase in revenues minus the increase in costs from selling more units of a product.

A)True B)False Q2) The price-recovery component of a change in operating income from one year to the next measures the increase in operating income from selling more units of the product.

A)True B)False Q3) The accounting scorecard translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for implementing its strategy.

A)True B)False Q4) What is the operating income in year 2?

A) $378,600 B) $366,120 C) $1,242,000 D) $403,520 E) $210,000

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Chapter 14: Period Cost Allocation Available Study Resources on Quizplus for this Chatper 153 Verified Questions 153 Flashcards Source URL: https://quizplus.com/quiz/69938

Sample Questions Q1) Using the step-down method, what amount of Warehouse Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up) A) $58,333 B) $116,667 C) $60,833 D) $121,667 E) $0 Q2) John Peters is drafting the provisions of a cost-plus contract and is concerned with ironing out any possible misunderstandings during the life of the contract. What advice can you provide to reduce contract disputes over reimbursement amounts based on costs?

Q3) Both fixed and variable costs are allocated according to capacity used. The fixed and variable costs allocated to the Barbell Department are A) $30,000 and $50,000, respectively.

B) $30,000 and $60,000, respectively.

C) $30,000 and $75,000 respectively.

D) $40,000 and $60,000, respectively.

E) $60,000 and $40,000, respectively.

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Chapter 15: Cost Allocation: Joint Products and Byproducts Available Study Resources on Quizplus for this Chatper 149 Verified Questions 149 Flashcards Source URL: https://quizplus.com/quiz/69939

Sample Questions Q1) The selection of a joint cost allocation method assists managers in which of the following decisions?

A) pricing B) total cost minimization C) joint costs minimization D) adding or dropping a product line E) sell or process further Q2) When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to Mr. DirtOut and Mr. SinkClean?

A) $231,116 and $148,884 B) $224,200 and $155,800 C) $227,202 and $152,798 D) $155,800 and $224,200 E) $148,884 and $231,116 Q3) What are a joint cost and a splitoff point?

Q4) Byproduct revenues appear in the income statement as a cost increase to the main product and as a separate item of expense.

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Chapter 16: Revenue and Customer Profitability Analysis Available Study Resources on Quizplus for this Chatper 137 Verified Questions 137 Flashcards Source URL: https://quizplus.com/quiz/69940

Sample Questions Q1) Calculate the allocation of packaged price for Game A in Package 1, using unit costs as the base.

A) $12.57 B) $13.97 C) $20.84 D) $22.00 E) $23.16 Q2) The (the difference between the actual market size in units and the budgeted market size in units) times (the budgeted market share) times (budgeted contribution margin per composite unit for the budgeted mix) is called the A) budgeted market-size variance.

B) budgeted market-share variance.

C) market-share variance.

D) market-size variance.

E) sales quantity variance.

Q3) A difficulty with the market share and market size variances is that accurate measures of market share and market size often do not exist.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 17: Process Costing Available Study Resources on Quizplus for this Chatper 128 Verified Questions 128 Flashcards Source URL: https://quizplus.com/quiz/69941

Sample Questions Q1) Process-costing journal entries and job-costing journal entries are similar except for the multiple work-in-process accounts in the job-costing system.

A)True B)False Q2) Conceptually transferred-in costs from another department are similar to A) direct labour.

B) finished goods inventory.

C) direct labour and materials.

D) manufacturing overhead.

E) materials provided by external suppliers.

Q3) An operation-costing system is a hybrid costing system, applied to batches of similar products.

A)True B)False Q4) Process-costing systems using standard costs usually accumulate actual costs separately from the inventory accounts.

A)True B)False Q5) Discuss some typical products which would likely use process costing.

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Chapter 18: Spoilage, Rework, and Scrap Available Study Resources on Quizplus for this Chatper 121 Verified Questions 121 Flashcards Source URL: https://quizplus.com/quiz/69942

Sample Questions Q1) Which of the following can be used in accounting for spoilage?

A) standard costs B) FIFO C) Weighted average D) FIFO and weighted average but not standard costs E) FIFO and weighted average and standard costs Q2) What is the total cost per equivalent unit using the weighted-average method of process costing?

A) $3.00 B) $3.60 C) $4.60 D) $6.60 E) $6.90 Q3) When scrap is insignificant in value, A) it is recorded when discovered.

B) it may not be recognized until the point of sale.

C) it is recognized at the point of production.

D) it is recorded at its fair market value.

E) it is not necessary to recognize it in the accounting records.

Q4) Distinguish among spoilage, reworked units, and scrap. Give an example of each.

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Chapter 19: Cost Management: Quality, Time, and the Theory of Constraints Available Study Resources on Quizplus for this Chatper 158 Verified Questions 158 Flashcards Source URL: https://quizplus.com/quiz/69943

Sample Questions Q1) Producing more non-bottleneck output increases throughput contribution.

A)True B)False Q2) How much does external failure costs change if all changes are as anticipated with the new prevention procedures?

A) $57,024 decrease B) $57,600 increase C) $57,600 decrease D) $72,000 decrease E) $72,624 increase Q3) Which of the following are typically not included in COQ reports?

A) lost contribution margin from lost sales due to poor quality B) lost production that results from poor quality C) lower prices that result from poor quality D) allocation bases E) lost contribution margin from lost sales and/or from lost production, nor lower prices that result form poor quality Q4) How much will appraisal costs change assuming the new prevention methods reduce material failures by 40% in the appraisal Page 21phase?

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Chapter 20: Inventory Cost Management Strategies Available Study Resources on Quizplus for this Chatper 136 Verified Questions 136 Flashcards Source URL: https://quizplus.com/quiz/69944

Sample Questions Q1) What are the total relevant costs, assuming the quantity ordered equals 500 units?

A) $3,500 B) $500 C) $4,000 D) $3,750 E) $3,350 Q2) Which of the following is NOT a component in a materials requirement planning system?

A) lead times of all items to be purchased B) master production schedule C) bill of materials filed D) standard construction times for all components produced externally E) demand forecasts for finished goods Q3) Just-in-Time (JIT) Production is a system in which each component on a production line is produced immediately as needed by the next step in the production line.

A)True B)False Q4) The costs associated with storage are an example of which cost category?

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Page 22

Chapter 21: Capital Budgeting: Methods of Investment Analysis Available Study Resources on Quizplus for this Chatper 128 Verified Questions 128 Flashcards Source URL: https://quizplus.com/quiz/69945

Sample Questions Q1) The accrual accounting rate of return is an accounting measure of income divided by an accounting measure of investment.

A)True B)False Q2) The payback method allows for managers to highlight liquidity.

A)True B)False Q3) Both financial and nonfinancial factors associated with proposed capital budgeting opportunities need to be considered as part of the capital budgeting decision process.

A)True B)False Q4) Defensive strategies can be difficult to quantify because opportunity costs are difficult to predict.

A)True B)False Q5) Explain capital budgeting, and then briefly discuss each of the six processes of the capital budgeting decision process model?

23 Budgeting Decision Process Model.

Q6) Briefly describe the processes in the Page Capital To view all questions and flashcards with answers, click on the resource link above.

Chapter 22: Capital Budgeting: a Closer Look Available Study Resources on Quizplus for this Chatper 120 Verified Questions 120 Flashcards Source URL: https://quizplus.com/quiz/69946

Sample Questions Q1) A company purchased a class 8 asset (there were no disposals). If the asset cost $20,000, had an estimated salvage value of $5,000, using the declining balance method with an allowable rate of 20%, the allowable CCA in the first and second years would be, respectively, A) $1,500 and $2,700.

B) $2,000 and $3,600.

C) $3,000 and $2,400.

D) $3,000 and $1,200.

E) $4,000 and $3,200.

Q2) Headwaters Ltd. is considering purchasing a new asset. It has a cost of $1,350,000, an expected 6 year life and a salvage value of $90,000. The equipment would qualify as a class 8 (20% CCA) asset and Headwaters has a required rate of return of 11% and an effective tax rate of 32%.

Required: Calculate the tax shields that are generated from the purchase of this asset. Assume the asset will be placed in a pool and the pool will continue upon disposition. For tax purposes the disposition will occur on day 1 of Year 7. What is the net tax effect of the asset acquisition?

Q3) Explain why the term tax shield is used in conjunction with amortization.

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Chapter 23: Transfer Pricing and Multinational Management Control Systems Available Study Resources on Quizplus for this Chatper 141 Verified Questions 141 Flashcards Source URL: https://quizplus.com/quiz/69947

Sample Questions Q1) The president of Silicon Company has just returned from a week of professional development courses and is very excited that she will not have to change the organization from a centralized structure to a decentralized structure just to have responsibility centres. However, she is somewhat confused about how responsibility centres relate to centralized organizations where a few managers have most of the authority.

Required: Explain how a centralized organization might allow for responsibility centres.

Q2) What is the transfer price per compressor from the Compressor Division to the Assembly Division if the method used to place a value on each compressor is 150% of variable costs?

A) $81.75 B) $77.00 C) $9.00 D) $72.75 E) $51.00 Q3) Opportunity costs represent the cash flows directly associated with the production and transfer of the products and services.

A)True B)False

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Chapter 24: Multinational Performance Measurement and Compensation Available Study Resources on Quizplus for this Chatper 139 Verified Questions 139 Flashcards Source URL: https://quizplus.com/quiz/69948

Sample Questions Q1) What is Economic Value Added (EVA) for the Gold Division?

A) -$283,200 B) -$82,560 C) $196,800 D) $397,440 E) -$195,200 Q2) What is the value of the total assets belonging to the Alpha Division?

A) $4,333,333 B) $6,000,000 C) $6,500,000 D) $7,151,800 E) $6,434,434 Q3) One way to achieve greater comparability of historical-cost based ROIs is to restate performance in dollars.

A)True B)False Q4) Ethical behaviour on the part of managers, while important for its own sake, is not paramount in importance.

A)True B)False

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