Accounting Depo at Macys is cost center Avg repair time on products returned for service would be a typical measure for which of the following balance scorecard perspectives internal business Budget Committee are often used to review submitted budgets Budgeted Income Statement is not a financial budget Budgets are future oriented Depreciation Exp would not appear in a cash budget Division of Honda Motor Co is investment center Division of HP produces sells printing scanning equipment investment center DL Efficiency Variance tells managers how much of the total variance is due to using a greater or lesser amount of time than anticipated DL Rate Variance tells managers how much of the total variance is due to paying a different hourly way rate than anticipated DM Price Variance tells managers how much of the total variance is due to paying a different price than expected for DM DM quantity variance tells managers how much of the total variance is due to using a difference quantity of DM than expected DM price variance is calculated using actual quantity of materials purchased Financial Budgets project collection payment of cash and forecast the balance sheet Fixed OH Budget Variance measures the dif between actual fixed MOH costs incurred and budgeted fixed MOH costs Fixed OH Volume Variance measures the difference between the budgeted fixed MOH costs and the standard allocated MOH costs Flexible budget contains a plan for a range of activity levels so that the plan can be adjusted to reflect changes in activity levels For a merchandising company the COGS Inv and Purch budget does not replace sales budget Ideal Standards standards based on conditions that do not allow for any waste in the production process Increase in selling price would not cause an unfavorable DM quantity variance IRR is the interest rate at which the NPV of the investment is 0 Managers will sometimes build slack into their budgets to protect themselves Manages of cost rev c are at lower levels of the org than of profit investment c Master Budget comprehensive planning doc for entire org North Canton location of a chain restaurant is profit center Participative Budgeting begins with departmental managers and flows up through top management Paying bonuses to the sales force is not an example of a capital budgeting investment Pharm Depo of grocery store is profit center Practical Standards attainable standards Price sensitivity of customers can be analyzed would not be an advantage of using standard costs Production Budget is not ordinarily prepared by service company Production Budget used to forecast how many units should be made Production line at car plant where Ford trucks are manufactured cost center Responsibility Center any segment whose manager is accountable for specific activities Rolling Budget is continuously updated by adding months to the budget Safety Stock is extra inventory of finished goods that is kept on hand Sales manager in charge of Nike NE sales territory revenue center A Shoe Depo at a store which is responsible for buying selling merch profit center Standard Cost budget for a single unit of product Starting point for DL budget for a manufacturer is the production budget Starting point for master budget sales budget Strategic Planning process of setting long term goals Tech has made it easier to do everything except remove slack from budget The DL efficiency variance is calculated using the standard labor rate per hour The fixed overhead variances are the budget variance and the volume variance The production volume variance is favorable whenever actual output exceeds expected input The income st is part of which element of the master budget operating budgets The variance is the dif between actual budgeted figures The sales budget production budget are operating budgets The volume variance on a flexible budget report is the different between the master budget and the flexible budget The Quaker Foods division of PepsiCo is most likely treated as a investment center Variable OH Rate Variance variable overhead spending variance Variable OH Efficiency Variance tells managers how much of the total variable MOH variance is due to using more less of the allocation base than anticipated for the actual volume of output Variable overhead spending variance is calculated by AH AR SR When management only investigates budget variances that are large this is management by exception When making capital rationing decisions the size of the initial investment required may differ between alternative investments The profitability index can be used in conjunction with which of the following methods to help managers choose between alternatives NPV Which disadvantage of financial performance measures ROI and residual income focus on Which responsibility center would it be appropriate to measure performance using RIO short term performance investment center Which would be most likely to be the cause of unfavorable DL rate variance using highly paid skilled workers for routine jobs normally performed by minimum wage workers Which uses accrual accounting rather than net cash flows ARR Which does not consider the investment s profitability Payback Which of the following balanced scorecard perspectives essentially asks Can we continue to improve and create value learning and growth Which is the most reliable method for making capital budgeting decisions NPV Which of the following would be least likely to cause a DM quantity standard to be outdated demand for the product has increased steadily over the past two years in spite of a worsening economy Which is not one of the potential advantages of decentralization increases goal congruence Zero Based Budgeting is when an org builds its budget from ground up