Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 24, Problem 16TI
To determine
Match the responsibility center and the responsibility report correctly.
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Distinguish among a budget, a performance report, and a variance.
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Part 1
A.
A budget measures the differences between a performance report and a variance; a performance report compares actual results with the budget; and a variance is a quantitative expression of a plan of action.
B.
A budget compares the performance report with variances; a performance report measures the differences between budget and actual; and a variance is a quantitative expression of a plan of action.
C.
A budget compares actual results with the performance report; a performance report is a quantitative expression of a plan of action; and a variance measures the differences between budget and actual.
D.
A budget is a quantitative expression of a plan of action; a performance report compares actual results with the budget; and a variance measures the differences between budget and actual.
Responsibility reports should be simple, show variances between the budgeted and actual amounts of controllable revenue and expense items, and be timely. TRUE OR FALSE
When analyzing an organization's budget using 2-variance analysis, the 2 elements used are volume variance and: Select one: a. quantity variance b. price variance c. applied variance O d. budget variance
Chapter 24 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. 24 - Prob. 1TICh. 24 - Fill in the blanks with the phrase that best...Ch. 24 - Prob. 3TICh. 24 - Fill in the blanks with the phrase that best...Ch. 24 - Prob. 5TICh. 24 - Fill in the blanks with the phrase that best...Ch. 24 - Prob. 7TICh. 24 - Prob. 8TICh. 24 - Prob. 9TICh. 24 - Prob. 10TI
Ch. 24 - Prob. 11TICh. 24 - Prob. 12TICh. 24 - Prob. 13TICh. 24 - Match the responsibility center to the correct...Ch. 24 - Prob. 15TICh. 24 - Prob. 16TICh. 24 - Prob. 17TICh. 24 - Prob. 18TICh. 24 - Prob. 19TICh. 24 - Prob. 20TICh. 24 - Sheffield Company manufactures power tools. The...Ch. 24 - Prob. 22TICh. 24 - Which is not one of the potential advantages of...Ch. 24 - The Quaker Foods division of PepsiCo is most...Ch. 24 - Which of the following is not a goal of...Ch. 24 - Which of the following balanced scorecard...Ch. 24 - The performance evaluation of a cost center is...Ch. 24 - Assume the Residential Division of Kipper Faucets...Ch. 24 - Assume the Residential Division of Kipper Faucets...Ch. 24 - Assume the Residential Division of Kipper Faucets...Ch. 24 - Assume the Residential Division of Kipper Faucets...Ch. 24 - Penn Company has a division that manufactures a...Ch. 24 - Explain the difference between a centralized...Ch. 24 - Prob. 2RQCh. 24 - List the disadvantages of decentralization.Ch. 24 - What is goal congruence?Ch. 24 - Prob. 5RQCh. 24 - What is the purpose of a responsibility accounting...Ch. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - Prob. 9RQCh. 24 - What are the goals of a performance evaluation...Ch. 24 - Prob. 11RQCh. 24 - How is the use of a balanced scorecard as a...Ch. 24 - What is a key performance indicator?Ch. 24 - What are the four perspectives of the balanced...Ch. 24 - Explain the difference between a controllable and...Ch. 24 - Prob. 16RQCh. 24 - What are two key performance indicators used to...Ch. 24 - Prob. 18RQCh. 24 - Prob. 19RQCh. 24 - Prob. 20RQCh. 24 - Prob. 21RQCh. 24 - Prob. 22RQCh. 24 - What is the biggest advantage of using RI to...Ch. 24 - What are some limitations of financial performance...Ch. 24 - Prob. 25RQCh. 24 - Prob. 26RQCh. 24 - Prob. 27RQCh. 24 - Prob. 1SECh. 24 - Prob. 2SECh. 24 - Well-designed performance evaluation systems...Ch. 24 - Consider the following key performance indicators,...Ch. 24 - Management by exception is a term often used in...Ch. 24 - Consider the following data, and determine which...Ch. 24 - XTreme Sports Company makes snowboards, downhill...Ch. 24 - Prob. 8SECh. 24 - Using ROI and RI to evaluate investment centers...Ch. 24 - Henderson Company manufactures electronics. The...Ch. 24 - Prob. 11ECh. 24 - Prob. 12ECh. 24 - Well-designed performance evaluation systems...Ch. 24 - Consider the following key performance indicators,...Ch. 24 - One subunit of Harris Sports Company had the...Ch. 24 - The accountant for a subunit of Speed Sports...Ch. 24 - Zims, a national manufacturer of lawn-mowing and...Ch. 24 - Refer to the data in Exercise E24-17. Calculate...Ch. 24 - Prob. 19ECh. 24 - One subunit of Racer Sports Company had the...Ch. 24 - Consider the following condensed financial...Ch. 24 - Prob. 22APCh. 24 - The Harris Company is decentralized, and divisions...Ch. 24 - One subunit of Track Sports Company had the...Ch. 24 - Consider the following condensed financial...Ch. 24 - Prob. 26BPCh. 24 - The Hernandez Company is decentralized, and...Ch. 24 - Prob. 28PCh. 24 - This problem continues the Piedmont Computer...Ch. 24 - The Trolley Toy Company manufactures toy building...Ch. 24 - Dixie Irwin is the department manager for...Ch. 24 - Prob. 1FCCh. 24 - In 150 words or fewer, list each of the four...
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- In comparing actual sales revenue to flexible budget sales revenue, would it be possible to have a favorable variance and still not have met revenue expectations?arrow_forwardThe budget variance for variable production costs is broken down into quantity and price variances. Explain why the quantity variance is more useful for control purposes than the price variance.arrow_forwardThe refers to a measure of acceptable performance established by management a guide in making decisions. Group of choices: Planning Standards Variance Budgetarrow_forward
- Match the definition the term. Terms: Cost variance Overhead cost variance Price variance Quantity variance Standard costs Sales budget Production Budget Balanced scorecard Profit center Cost center Definitions: 1. A plan showing the units of goods to be sold and sales to be derived; usually starting pointing the budgeting process. 2. A system of performance measures, including the nonfinancial measures, used to asses manager performance. 3. A department that incurs cost and genrate revenues, such as a selling department 4. The difference between actual and budgeted sales or cost caused by the difference between the actual per unit and the budgeted price per unit. 5. The difference between actual cost and standard cost, made up of a price variance and a quantity variance. 6. The difference between the total overhead cost actually incurred and the total overhead cost applied to products 7. The difference between the actual budgeted cost caused by…arrow_forwardExplain the relationship between performance reports and flexible budgeting.arrow_forwardWhen a variance occurs between the budgeted amount and the actual expenditures, it is important to: O Analyze the variance and update the budget accordingly. Analyze the variance to determine if it is significant, and then determine if the variance needs to be corrected or the budget adjusted. Note the variance and and make changes to your business operations to bring the actual expenses back in line with the budget.arrow_forward
- Cite a specific example of the application of gross profit variance analysis. How will it help the company in its decision making?arrow_forwardThe variance that highlights the difference between actual sales volume and the master budget sales volume is the sales activity variance. O flexible budget variance. O master budget variance. O MOH volume variance.arrow_forwardExplain your answer and do not copy from others sourcesarrow_forward
- 1. Match each of the following terms with the appropriate definition. The difference between actual and budgeted revenue or cost caused by the difference between the actual number of units sold or used and the budgeted number of units. A budget prepared after an operating period is complete in order to help managers evaluate past performance; uses fixed and variable costs in determining total costs. The costs that should be incurred under normal conditions to produce a specific product or to perform a specific service. The difference between 1. Cost Variance total overhead cost that would have been expected if the actual operating 2. Volume Variance volume had been accurately predicted and 3. Price Variance the amount of overhead cost that was allocated to products using the predetermined standard overhead rate. 4. Quantity Variance 5. Standard Costs A planning budget based on a single predicted amount 6. Fixed Budget of sales or production volume; unsuitable for 7. Flexible Budget…arrow_forwardShow how managers can gain insight into the causes of a sales-volume variance by subdividing the components of this variance.arrow_forwardIn the executing stage of management cycle, managers check for variances, between budgets and actual performance. Select one: O True O Falsearrow_forward
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Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY