Budgetary Control and Responsibility Accounting

What is the primary mechanism used for budgetary control in a company?

A static budget is a projection of budget data at what level of activity?

For which of the following costs is a static budget report most appropriate for performance evaluation?

What is the primary difference between a static budget and a flexible budget?

The master budget for Fox Company's Finishing Department shows annual fixed costs of $360,000 for depreciation, supervision, and property taxes. What is the monthly budgeted fixed cost for this department?

What is the core principle of responsibility accounting?

Which of the following describes a cost center?

In a responsibility report for a profit center, how is the controllable margin calculated?

What is the formula for calculating Return on Investment (ROI) for an investment center?

Costs that relate specifically to one responsibility center and are incurred for the sole benefit of that center are known as:

Based on the static budget for Barton Robotics, budgeted costs for producing 10,000 units are $1,100,000. When 12,000 units are actually produced, what is the total unfavorable difference shown on the static budget report?

In the flexible budget for Fox Company's Finishing Department, the variable cost for indirect materials is $1.50 per direct labor hour. If 8,000 direct labor hours are worked, what is the budgeted cost for indirect materials?

What is the primary objective of a responsibility reporting system?

A manager of an investment center can improve ROI by which of the following actions?

What is the key document used to understand the activities in a department under a process cost system?

What does a debit balance in the Manufacturing Overhead account signify at the end of a period?

According to the responsibility report for the Marine Division of Mantle Company, what is the budgeted controllable margin?

The flexible budget report for Fox Company's Finishing Department for January shows an actual cost for indirect labor of $17,000 against a budget of $18,000. What is the variance?

What is the first step in developing a flexible budget?

A responsibility report for a cost center typically includes which of the following?

If the Laser Division of Berra Company has sales of $2,000,000, a contribution margin of 45 percent, and controllable fixed costs of $300,000, what is its controllable margin?

If the Laser Division of Berra Company increases its sales by 10 percent ($200,000) and its contribution margin percentage is 45 percent, by how much will its controllable margin increase, assuming fixed costs do not change?

Which of the following is NOT a level in the responsibility reporting system shown for Francis Chair Company?

A static budget report shows a budget of $180,000 and actual results of $179,000. What is the difference and is it favorable or unfavorable?

What type of responsibility center is the jewelry department of a Macy's department store?