Conceptual
Ch. 10
Ch. 11
Ch. 12
100
What is the first step to creating a balanced scorecard?
Defining company strategy
100
How do you find the labor efficiency variance?
(SP x AQ) - (SP x SQ) or vice versa
100
Goodman Inc. allocates variable expenses at a rate of $5 per hour. This year, they budgeted 1,000 hours, but the carpeting division actually used 1,100 hours. How much variable expense should be allocated to the carpeting division?
$5,500
100
What are the 4 categories in a balanced scorecard?
Financial, Customer, Internal Business Processes, Learning and Growth
200
How would you calculate the materials price variance?
(AP x AQ) - (SP x AQ)
200
Bandar Industries manufactured 35,000 helmets last month using 22,500 kg of plastic. The plastic cost the company $171,000. According to the standard cost card, each helmet should require 0.6 kg of plastic, at a cost of $8/kg.
What is the material quantity variance?
$12,000 U
200
Which is NOT an advantage of decentralization?
a) Allows top managers to focus on strategic issues
b) potential duplication of resources
c) allows for development of managerial expertise
d) managers can react quickly to local information
B
200
"Average training hours per employee" would fall under which area of the balanced scorecard?
Learning and growth
300
Which of the 4 balanced scorecard categories would this statement affect:
"Customers are returning too many defective products."
Internal Business Process
300
Bandar Industries manufactured 35,000 helmets last month using 22,500 kg of plastic. The plastic cost the company $171,000. According to the standard cost card, each helmet should require 0.6 kg of plastic, at a cost of $8/kg.
What is the material price variance?
$9,000 F
300
Iowa City Inc. has a profit margin of 12% and an investment turnover of 2.5. Sales revenue is $600,000. What is the average invested assets?
$72,000
300
"Product recalls" would fall under which quality cost subcategory?
External failure
400
A manager has responsibility and authority over revenues, costs and assets in which type of center?
Investment
400
If variable manufacturing overhead is applied to production on the basis of direct labor hours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency be favorable or unfavorable, or could it be either? Explain.
The variable overhead efficiency variance will be the same - so in this case, unfavorable.
400
The pulp division currently sells 1 ton of pulp for $70 (incurring $42 of variable expenses.) Another company division, the carton division, is currently purchasing 5,000 tons of pulp from an outside supplier for $63 per ton. If the pulp division has no idle capacity, what is the acceptable range of transfer prices?
There is none.
400
What are the 4 categories of cost of quality?
Prevention, appraisal, internal failure, external failure
500
Why can undue emphasis on labor efficiency variances lead to excess work in process inventories?
Labor efficiency variances can result from a low demand for product. In this case, if you continue to push for efficiency, you may end up with a large work-in-process inventory that is not demanded by your customers.
500
What is the materials price variance?
$1300 U
500
Columbus Corp. has revenues of 1.5M resulting in an operating income of $105,000. Average invested assets total $750,000. If sales increase by 10% and the investment level remains constant, what is the investment turnover?
2.2
500
"Lost sales due to out-of-stock merchandise" would fall under which category of a balanced scorecard?
Internal business processes