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ACG Final (Ch 8-10) (2

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ACG Final (Ch 8-10) (2

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  • July 29, 2024
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  • 2023/2024
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ACG Final (Ch 8-10)
________ compares actual revenues and expenses against budgeted figures. - ANS-A
performance report

________ costs include costs that may be eliminated as a result of discontinuing the product -
ANS-Avoidable fixed

________ entails the planning and establishment of long-term goals which range years into the
future. - ANS-Strategic planning

________ focuses on how efficiently the division uses its assets to generate sales revenue. -
ANS-Capital turnover

________ include fixed costs that continue to be incurred even if the product line is
discontinued. - ANS-Unavoidable fixed costs

________ include(s) expenses that cannot be traced to the profit center. - ANS-Common fixed
expenses

________ include(s) those fixed expenses that can be traced to a profit center. - ANS-Direct
fixed expenses

________ measures the amount of income an investment center earns relative to the size of its
assets. - ANS-Return on investment (ROI)

________ refers to a company having work performed overseas. - ANS-Offshoring

________ refers to the concept that a manager will only investigate budget variances that are
relatively large. - ANS-The management by exception technique

________ refers to the result of operating income or loss for each individual product line. -
ANS-Segment margin income

A ________ is a lending tool the company can use to draw money as needed at a specified rate
of interest, for a specified amount of time, paying on the actual amount owed instead of a
closed-end note. - ANS-line of credit

A managerial accountant needs to make a sell or continue to process decision about a product.
The managerial accountant should continue manufacturing the product instead of selling the
product if ________. - ANS-the extra revenue is greater than the extra cost to continue
manufacturing a product

, A merchandising company uses a master budget which includes a ________. - ANS-cost of
goods sold

A segment margin income statement ________. - ANS-contains NO allocation of common fixed
costs on the statement

A special order ________. - ANS-occurs when a customer requests a one-time order at a
reduction in the sales price

A sunk cost _____ - ANS-includes costs that have been incurred in the past and cannot be
changed

Actual or prior year budgeted data is ________. - ANS-the starting point for creating the budget

Capital turnover ________. - ANS-focuses on how efficiently the division uses its assets to
generate sales revenue

Computer World wants to increase their current return on investment (ROI). What action should
the managerial accountant take to increase the current ROI? - ANS-Operating expense
reduction

Cost-plus pricing ________. - ANS-starts with the product's total costs and adds a desired profit
to determine a cost-plus price

Hamish has calculated the budget variance in column D, but needs to indicate if it is favorable
or unfavorable. Which Excel function will allow Hamish to compare the values in columns B and
C to determine if the variance is favorable or unfavorable? - ANS-IF

Hamish has calculated the budget variance in column D, but needs to indicate if it is favorable
or unfavorable. Which Excel function will be most helpful? - ANS-IF

Hamish is building a performance report and wishes to have the amount in the variance column,
computed as ACTUAL - BUDGET, expressed as a positive number. Which function should
Hamish use to make sure that all variances are displayed as positive numbers? - ANS-ABS

Himal wishes to enter a formula in cell D3 that can be copied down to the rows below and she
would like for the result to always appear as a positive number. Which formula will achieve
Himal's goal? - ANS-=ABS(B3-C3)

In a _______ managers are responsible for both revenues and costs. - ANS-profit center

In a profit center ________. - ANS-managers are responsible for both revenues and costs

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