ACCT 526 COMPREHENSIVE ANSWERS AND
QUESTIONS SET A+
✔✔a budget created in advance for a particular level of activity. - ✔✔static budget
✔✔If the variable cost per unit goes down, - ✔✔Contribution margin increases and
Break-even point decreases.
✔✔For performance reporting, it is best to compare actual costs with budgeted costs
using - ✔✔flexible budgets
✔✔a strategic management system that translates an organization's mission and
strategy into operational objectives and performance measures. - ✔✔balanced
scorecard
✔✔part of an organization in which the manager is responsible only for costs. - ✔✔cost
center
✔✔defines the customer and market segments in which the business segments
compete. - ✔✔customer perspective
✔✔the difference between realization (what the customer receives) and sacrifice (what
is given up in return). - ✔✔customer value
✔✔the length of time it takes to produce one unit of output from the time raw materials
are received until the unit is delivered to finished goods inventory. - ✔✔cycle time
✔✔the practice of delegating decision-making authority to lower levels of management.
- ✔✔decentralization
✔✔after-tax operating income minus the dollar cost of capital employed. - ✔✔economic
value added
, ✔✔describes the economic consequences of actions taken in the other three Balanced
Scorecard perspectives. - ✔✔financial perspective
✔✔the minimum ROI required to accept an investment. - ✔✔hurdle rate
✔✔creates new products and services to satisfy emerging and potential customer
needs. - ✔✔innovation process
✔✔describes the internal business processes needed to provide value for customers
and owners. - ✔✔internal business process perspective
✔✔part of an organization in which the manager is responsible for sales, costs, and
investment. - ✔✔investment center
✔✔defines the capabilities that an organization needs to create long-term growth and
improvement, including employee capabilities, information systems capabilities, and
employee attitudes. - ✔✔learning and growth infrastructure perspective
✔✔the ratio of operating income to sales. - ✔✔margin
✔✔value-added time divided by total time. - ✔✔manufacturing cycle efficiency
✔✔all assets acquired to generate income. - ✔✔operating assets
✔✔earnings before interest and taxes. - ✔✔operating income
✔✔produces and delivers existing products and services to customers. - ✔✔operations
process
✔✔costs incurred by the customer after purchase. - ✔✔post purchase cost
✔✔provides services to customers after the product is produced and delivered. -
✔✔post sales service process
✔✔the innovation, operations, and post-sales service processes. - ✔✔process value
chain
✔✔part of an organization in which the manager is responsible for both sales and costs.
- ✔✔profit center
✔✔the difference between income and the minimum dollar return required on a
company's operating assets. - ✔✔residual income
QUESTIONS SET A+
✔✔a budget created in advance for a particular level of activity. - ✔✔static budget
✔✔If the variable cost per unit goes down, - ✔✔Contribution margin increases and
Break-even point decreases.
✔✔For performance reporting, it is best to compare actual costs with budgeted costs
using - ✔✔flexible budgets
✔✔a strategic management system that translates an organization's mission and
strategy into operational objectives and performance measures. - ✔✔balanced
scorecard
✔✔part of an organization in which the manager is responsible only for costs. - ✔✔cost
center
✔✔defines the customer and market segments in which the business segments
compete. - ✔✔customer perspective
✔✔the difference between realization (what the customer receives) and sacrifice (what
is given up in return). - ✔✔customer value
✔✔the length of time it takes to produce one unit of output from the time raw materials
are received until the unit is delivered to finished goods inventory. - ✔✔cycle time
✔✔the practice of delegating decision-making authority to lower levels of management.
- ✔✔decentralization
✔✔after-tax operating income minus the dollar cost of capital employed. - ✔✔economic
value added
, ✔✔describes the economic consequences of actions taken in the other three Balanced
Scorecard perspectives. - ✔✔financial perspective
✔✔the minimum ROI required to accept an investment. - ✔✔hurdle rate
✔✔creates new products and services to satisfy emerging and potential customer
needs. - ✔✔innovation process
✔✔describes the internal business processes needed to provide value for customers
and owners. - ✔✔internal business process perspective
✔✔part of an organization in which the manager is responsible for sales, costs, and
investment. - ✔✔investment center
✔✔defines the capabilities that an organization needs to create long-term growth and
improvement, including employee capabilities, information systems capabilities, and
employee attitudes. - ✔✔learning and growth infrastructure perspective
✔✔the ratio of operating income to sales. - ✔✔margin
✔✔value-added time divided by total time. - ✔✔manufacturing cycle efficiency
✔✔all assets acquired to generate income. - ✔✔operating assets
✔✔earnings before interest and taxes. - ✔✔operating income
✔✔produces and delivers existing products and services to customers. - ✔✔operations
process
✔✔costs incurred by the customer after purchase. - ✔✔post purchase cost
✔✔provides services to customers after the product is produced and delivered. -
✔✔post sales service process
✔✔the innovation, operations, and post-sales service processes. - ✔✔process value
chain
✔✔part of an organization in which the manager is responsible for both sales and costs.
- ✔✔profit center
✔✔the difference between income and the minimum dollar return required on a
company's operating assets. - ✔✔residual income
