Survey of accounting Chapter 15 Exam Questions and Answers 100% Pass
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Survey of accounting Chapter 15
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Survey Of Accounting Chapter 15
Survey of accounting Chapter 15 Exam Questions and Answers 100% Pass
In a decentralized organization, decision making authority is - Answers delegated to individuals responsible for managing specific organization functions
Responsibility center categories are - Answers Profit, investment, and cos...
Survey of accounting Chapter 15 Exam Questions and Answers 100% Pass
In a decentralized organization, decision making authority is - Answers delegated to individuals
responsible for managing specific organization functions
Responsibility center categories are - Answers Profit, investment, and cost
An organizational unit that incurs expenses, but does not generate revenue is called a(n) ________
center - Answers cost
An organizational unit that incurs expenses and generates revenue is called a(n) ________ center -
Answers profit
An organizational unit that is responsible for revenues, expenses, and capital expenditures is a(n)
________ center - Answers Investment
Delegating decision-making authority to individuals responsible for managing specific organization
functions is referred to as ________ - Answers decentralization
The controllability concept states that managers should ________ - Answers be evaluated only on the
revenues and costs they control
Cost, profit, and investment are all categories of ________ centers - Answers responsibility
Managers are usually held responsible for items over which they have _______ rather than absolute
control - Answers predominant
Master budget is frequently called a(n) ________ budget because it remains unchanged even if the
actual volume of activity differs from the planned volume - Answers Static
Investment centers normally appear at the upper levels of an organization chart - Answers True
A budget that shows revenues and costs at a variety of volume levels is a(n) ________ budget - Answers
flexible
Crucial to an effective responsibility accounting system is the ______ concept. - Answers controllability
An organizational unit that controls identifiable revenue or expense items is a(n) ________ center -
Answers responsibility
Flexible budgets ________ - Answers Use the same per-unit standard amounts as the static budget, can
be prepared for any number of units sold, and show the same fixed costs as the static budget
Managers are usually held responsible for items that they have ________ control over - Answers
predominant
The difference between the standard and the actual amount is called a(n) ________ - Answers variance
, The master budget is frequently called a(n) ________ budget because it remains unchanged - Answers
Static
Sales variances are unfavorable when actual sales ______. - Answers are less than expected sales
A budget that shows revenues and costs at a variety of volume levels is a ______ budget. - Answers
flexible
Cost variances are favorable when actual costs ________ - Answers are less than standard costs
The only difference between a flexible budget and a static budget is the expected number of units sold -
Answers True
The difference between the standard and the actual amount is called a(n) _______ - Answers variance
The difference between sales on the static budget and sales on a flexible budget based is a _______
variance - Answers Sales volume
Sales variances are favorable when actual sales ________ - Answers exceed expected sales
Cost variances are unfavorable when actual costs ________ - Answers exceed standard costs
The difference between the cost on the static budget and the cost on a flexible is a(n) ________ _______
volume variance - Answers Variable cost
Volume variances are typically the responsibility of ________ managers - Answers marketing
The difference between costs on the static budget and costs on a flexible budget is a _______ variance -
Answers Costs volume
Unfavorable variable cost volume variances ________ - Answers -focus solely on the cost component of
the income statement
-should be assessed in conjunction with other variances
-may occur in conjunction with favorable revenue variances
The difference between the budgeted fixed costs and the actual fixed costs is called a(n) ________
variance - Answers spending
When marketing managers refer to making the numbers, they usually mean reaching the sales volume
in the ______ budget - Answers Master
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