CBAD 202 Final Exam – Questions With Complete
Solutions
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Perio Study DENT 475 - Implant components NBDE II Review - Pro
Teacher 78 terms 42 terms 69 terms
Hunter_Charters Preview gillphil Preview melissa_jarvis7
Terms in this set (105)
Decentralization Splitting operations into different operating segments
-Knowledge of local requirements
Advantages of Decentralization -Local sourcing
-Less bureaucracy
Disadvantages of -duplication of costs
Decentralization -problems achieving goal congruence
Performance Evaluation is Provides upper management with feedback
Important Why?
- Clearly communicate expectations
Performance evaluation systems - Provide benchmarks that promote goal congruence and
should? coordination between segments
- Motivate segment managers
Dividing the organization up into centers of responsibilities then
Responsibility Accounting evaluating performance of each responsibility center and its
manger
GOOD THINGS
Favorable Variance
Operating income will be higher than budgeted
NOOT GOOD THINGS
Unfavorable Variance
Operating income will be lower than budgeted
The Budget Variance is variance divided by the budget amount
calculated by
Measures the amount of income an investment center earns
Return on Investment
relative to the size of its assets
ROI is found by Operating income / Total Assets
- Determines whether the division has created any excess
Residual Income (residual) income above management's expectations
- Incorporates target rate of return
Operating income - minimal acceptable income
RI is found by
Operating income - (target rate of return x total assets)
- Short-term focus
Limitations of Financial
- Potential Remedy: management can measure financial
Performance Evaluation
performance using a longer time horizon
, When one department uses products produced by another
department within the company. When this happens a price must
be set between departments.
Transfer Pricing
- They may use market pricing
- They can negotiate a price
- Cost or cost plus pricing
- Fairer option to evaluate managers
Flexible Budgets - often the budget is prepared for a different level of volume
than that which was originally anticipated
Difference between the actual revenues and expenses and the
master budgets
Master Budget Variance - Does not result in a correct comparison
- The fair option is to compare actual volume and what the
results should have been based on that new volume
The difference between the master budget and the flexible
Volume Variance
budget
Volume Variance arises only actual volume
because the ____________ ____________ originally
differs from the volume ____________ master budget
anticipated in the __________ __________
The difference between the flexible budget and the actual
Flexible Budget Variance
results
- Management must consider both financial and operational
performance measures
The Balanced Scorecard
- Major Shift: Financial indicators are no longer the sole measure
of performance
- Financial
Four Perspectives of the - Customer
Balanced Scorecard - Internal Business
- Learning and Growth
- Summary performance metric; assesses how well the company
is achieving its goals
Key Performance Indicator (KPI) - Continually measured
- Reported on performance scorecard or performance
dashboard
- "How do we look to shareholders?"
- Must continually attempt to increase profits
Financial Perspective ~ Increase revenues
~ Control costs
~ Increase productivity
Four product / service attributes:
- Price
Customer Perspective - Quality
- Sales service
- Delivery time
What is managerial accounting? Type of accounting used by internal users
What is the Institute of
Management Accountants?
What is Certified Management
Accountant?
What are product costs? Costs incurred by manufacturers to produce their products
What is gross profit (gross Sales revenues - CoGS
margin)?
Typically used by companies that produce large quantities of
What is process costing?
identical units
What is a bill of material? Lists all of the raw materials needed to manufacture a job
Solutions
Save
Students also studied
Perio Study DENT 475 - Implant components NBDE II Review - Pro
Teacher 78 terms 42 terms 69 terms
Hunter_Charters Preview gillphil Preview melissa_jarvis7
Terms in this set (105)
Decentralization Splitting operations into different operating segments
-Knowledge of local requirements
Advantages of Decentralization -Local sourcing
-Less bureaucracy
Disadvantages of -duplication of costs
Decentralization -problems achieving goal congruence
Performance Evaluation is Provides upper management with feedback
Important Why?
- Clearly communicate expectations
Performance evaluation systems - Provide benchmarks that promote goal congruence and
should? coordination between segments
- Motivate segment managers
Dividing the organization up into centers of responsibilities then
Responsibility Accounting evaluating performance of each responsibility center and its
manger
GOOD THINGS
Favorable Variance
Operating income will be higher than budgeted
NOOT GOOD THINGS
Unfavorable Variance
Operating income will be lower than budgeted
The Budget Variance is variance divided by the budget amount
calculated by
Measures the amount of income an investment center earns
Return on Investment
relative to the size of its assets
ROI is found by Operating income / Total Assets
- Determines whether the division has created any excess
Residual Income (residual) income above management's expectations
- Incorporates target rate of return
Operating income - minimal acceptable income
RI is found by
Operating income - (target rate of return x total assets)
- Short-term focus
Limitations of Financial
- Potential Remedy: management can measure financial
Performance Evaluation
performance using a longer time horizon
, When one department uses products produced by another
department within the company. When this happens a price must
be set between departments.
Transfer Pricing
- They may use market pricing
- They can negotiate a price
- Cost or cost plus pricing
- Fairer option to evaluate managers
Flexible Budgets - often the budget is prepared for a different level of volume
than that which was originally anticipated
Difference between the actual revenues and expenses and the
master budgets
Master Budget Variance - Does not result in a correct comparison
- The fair option is to compare actual volume and what the
results should have been based on that new volume
The difference between the master budget and the flexible
Volume Variance
budget
Volume Variance arises only actual volume
because the ____________ ____________ originally
differs from the volume ____________ master budget
anticipated in the __________ __________
The difference between the flexible budget and the actual
Flexible Budget Variance
results
- Management must consider both financial and operational
performance measures
The Balanced Scorecard
- Major Shift: Financial indicators are no longer the sole measure
of performance
- Financial
Four Perspectives of the - Customer
Balanced Scorecard - Internal Business
- Learning and Growth
- Summary performance metric; assesses how well the company
is achieving its goals
Key Performance Indicator (KPI) - Continually measured
- Reported on performance scorecard or performance
dashboard
- "How do we look to shareholders?"
- Must continually attempt to increase profits
Financial Perspective ~ Increase revenues
~ Control costs
~ Increase productivity
Four product / service attributes:
- Price
Customer Perspective - Quality
- Sales service
- Delivery time
What is managerial accounting? Type of accounting used by internal users
What is the Institute of
Management Accountants?
What is Certified Management
Accountant?
What are product costs? Costs incurred by manufacturers to produce their products
What is gross profit (gross Sales revenues - CoGS
margin)?
Typically used by companies that produce large quantities of
What is process costing?
identical units
What is a bill of material? Lists all of the raw materials needed to manufacture a job
