CH 16 SB QUESTIONS WITH ANSWERS.
A management activity in the planning and control cycle that compares actual performance with
planned activity is known as: ANS -controlling
All costs are (controllable/noncontrollable) by someone at some time, but in the short run, some costs
may be classified as (controllable/noncontrollable) because there is really nothing a manager can do to
influence the amount of cost in the short run. ANS -controllable
noncontrollable
The difference between the actual and budgeted amounts shown in a performance report is called a .
ANS -variance
A performance reporting technique used to communicate explanations of variances to each manager
within the organization with an appropriate level of detail or summarization is known as:
Multiple choice question. ANS -responsibility reporting
A management technique that permits managers to concentrate their attention on only those activities
that have a significant variance, with the objective of understanding why the variance occurred, is
known as: ANS -management by exception
The primary objective of reporting is to highlight those activities for which actual and planned results
differ, favorably or unfavorably, so that appropriate action can be taken. ANS -performance
Noncontrollable cost
Controllable cost
matches ANS -A cost that cannot be influenced by managers in the short run
, A cost that is influenced by managers in the long run
Actual selling expense exceeds the budgeted selling expense.
Actual selling expense is less than the budgeted selling expense. ANS -Unfavorable variance
Favorable variance
A system of performance reporting that involves successive degrees of summarization as the number of
management responsibility levels being reported about increases is called reporting. ANS -responsibility
Using management by exception, which of the following variances would likely be further investigated?
Multiple select question. ANS -Raw materials variance: $6,800 favorable
Manufacturing overhead variance: $4,900 unfavorable
An example of a cost that is noncontrollable in the short run is: ANS -property taxes
If actual raw materials cost is less than the budgeted raw materials cost, then the variance is a(n)
(favorable/unfavorable) variance. ANS -favorable
ABC Company's performance report for April included the following for fixed manufacturing overhead:
Budgeted cost = $42,000; Variance = $1,500 F; Actual cost = $ ANS -40500
ABC Company's production budget for April included the following for direct labor: Budgeted production
= 15,000 units; Budgeted direct labor unit cost = $24 per unit. ABC Company's actual production for April
was the following: Actual production = 16,000 units; Actual direct labor cost = $25.00 per unit.
Calculate the following items for ABC's April performance report for direct labor: ANS -360000
384000
A management activity in the planning and control cycle that compares actual performance with
planned activity is known as: ANS -controlling
All costs are (controllable/noncontrollable) by someone at some time, but in the short run, some costs
may be classified as (controllable/noncontrollable) because there is really nothing a manager can do to
influence the amount of cost in the short run. ANS -controllable
noncontrollable
The difference between the actual and budgeted amounts shown in a performance report is called a .
ANS -variance
A performance reporting technique used to communicate explanations of variances to each manager
within the organization with an appropriate level of detail or summarization is known as:
Multiple choice question. ANS -responsibility reporting
A management technique that permits managers to concentrate their attention on only those activities
that have a significant variance, with the objective of understanding why the variance occurred, is
known as: ANS -management by exception
The primary objective of reporting is to highlight those activities for which actual and planned results
differ, favorably or unfavorably, so that appropriate action can be taken. ANS -performance
Noncontrollable cost
Controllable cost
matches ANS -A cost that cannot be influenced by managers in the short run
, A cost that is influenced by managers in the long run
Actual selling expense exceeds the budgeted selling expense.
Actual selling expense is less than the budgeted selling expense. ANS -Unfavorable variance
Favorable variance
A system of performance reporting that involves successive degrees of summarization as the number of
management responsibility levels being reported about increases is called reporting. ANS -responsibility
Using management by exception, which of the following variances would likely be further investigated?
Multiple select question. ANS -Raw materials variance: $6,800 favorable
Manufacturing overhead variance: $4,900 unfavorable
An example of a cost that is noncontrollable in the short run is: ANS -property taxes
If actual raw materials cost is less than the budgeted raw materials cost, then the variance is a(n)
(favorable/unfavorable) variance. ANS -favorable
ABC Company's performance report for April included the following for fixed manufacturing overhead:
Budgeted cost = $42,000; Variance = $1,500 F; Actual cost = $ ANS -40500
ABC Company's production budget for April included the following for direct labor: Budgeted production
= 15,000 units; Budgeted direct labor unit cost = $24 per unit. ABC Company's actual production for April
was the following: Actual production = 16,000 units; Actual direct labor cost = $25.00 per unit.
Calculate the following items for ABC's April performance report for direct labor: ANS -360000
384000
