ACCOUNTING PRINCIPLES 222 5/16 >C<
ACCOUNTING PRINCIPLES 222 5/16 >C<
2nd Edition
ISBN: 9781323461525
Author: Horngren
Publisher: PEARSON C
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Chapter 24, Problem P24.28APGA
To determine

1)

Introduction:

Variance Analysis

  • Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.
  • In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.
  • In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues.

Complete Performance Evaluation

To determine

2)

Introduction:

Responsibility centers

  • Responsibility centers are investment units that are responsible for incurring costs or generating revenues or both.
  • Under responsibility center accounting, the costs and revenues incurred at a particular location are allocated to the same and profitability analysis is then initiated.
  • If a responsibility center generates only costs, it is a cost center and if it generates both costs and revenues, it is a profit center.

Category of responsibility center that Subunit X falls under

To determine

3)

Introduction:

Variance Analysis

  • Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.
  • In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.
  • In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues.

Variances to be analyzed.

To determine

4)

Introduction:

Variance Analysis

  • Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.
  • In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.
  • In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues.

Whether only unfavorable variances should be analyzed.

To determine

5)

Introduction:

Variance Analysis

  • Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.
  • In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.
  • In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues.

If variances exist due to higher than expected sales volume.

To determine

6)

Introduction:

Variance Analysis

  • Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.
  • In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.
  • In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues.

If Management will give equal weightage to all variances exceeding $6,000

To determine

7)

Introduction:

Balanced Score Card

  • Balanced Score Card is a performance measure implemented to evaluate the performance of an entity based on four major parameters:

A) Financial Perspective

B) Customer Perspective

C) Internal Process Perspective

D) Learning and Growth Perspective

  • Indicators of the entity’s performance in each of these parameters are evaluated and a comparison is done to track progress and achievement of the entity’s organizational objectives and goals.
  • Lagging indicators focus on outputs. They are comparatively easy to measure but difficult to improve.
  • Leading indicators focus on inputs. They are relatively difficult to measure but easy to improve.

Which perspective of the Balanced Score Card is addressed through the performance report and if it is a lead or lag indicator.

To determine

8)

Introduction:

Balanced Score Card

  • Balanced Score Card is a performance measure implemented to evaluate the performance of an entity based on four major parameters:

A) Financial Perspective

B) Customer Perspective

C) Internal Process Perspective

D) Learning and Growth Perspective

  • Indicators of the entity’s performance in each of these parameters are evaluated and a comparison is done to track progress and achievement of the entity’s organizational objectives and goals.
  • Lagging indicators focus on outputs. They are comparatively easy to measure but difficult to improve.
  • Leading indicators focus on inputs. They are relatively difficult to measure but easy to improve.

Indicators of Balanced Score Card

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Chapter 24 Solutions

ACCOUNTING PRINCIPLES 222 5/16 >C<

Ch. 24 - Prob. 11AQCCh. 24 - Prob. 1RQCh. 24 - Prob. 2RQCh. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - Prob. 9RQCh. 24 - 10. Explain the difference between a centralized...Ch. 24 - Prob. 11RQCh. 24 - Prob. 12RQCh. 24 - Prob. 13RQCh. 24 - Prob. 14RQCh. 24 - Prob. 15RQCh. 24 - Prob. 16RQCh. 24 - List the four types of responsibility centers, and...Ch. 24 - What is a performance evaluation system?Ch. 24 - What are the goals of a performance evaluation...Ch. 24 - Prob. 20RQCh. 24 - Prob. 21RQCh. 24 - Prob. 22RQCh. 24 - Prob. 23RQCh. 24 - Prob. 24RQCh. 24 - Prob. 25RQCh. 24 - Prob. 26RQCh. 24 - Prob. 27RQCh. 24 - Prob. 28RQCh. 24 - Prob. 29RQCh. 24 - Prob. 30RQCh. 24 - Prob. 31RQCh. 24 - Prob. 32RQCh. 24 - Prob. 33RQCh. 24 - What is a transfer price?Ch. 24 - Prob. 35ARQCh. 24 - Prob. 36ARQCh. 24 - Prob. S24.1SECh. 24 - Prob. S24.2SECh. 24 - Prob. S24.3SECh. 24 - Prob. S24.4SECh. 24 - Prob. S24.5SECh. 24 - Prob. S24.6SECh. 24 - Describing the balanced scorecard and identifying...Ch. 24 - Prob. S24.8SECh. 24 - Prob. S24.9SECh. 24 - Prob. S24.10SECh. 24 - Prob. S24.11SECh. 24 - Prob. S24.12SECh. 24 - Prob. S24A.13SECh. 24 - Prob. E24.14ECh. 24 - Prob. E24.15ECh. 24 - Prob. E24.16ECh. 24 - E24-17 Computing product costs in traditional and...Ch. 24 - Identifying responsibility centers after...Ch. 24 - Prob. E24.19ECh. 24 - Prob. E24.20ECh. 24 - Prob. E24.21ECh. 24 - Prob. E24.22ECh. 24 - Prob. E24.23ECh. 24 - Prob. E24.24ECh. 24 - Prob. E24.25ECh. 24 - Prob. E24.26ECh. 24 - Prob. P24.27APGACh. 24 - Prob. P24.28APGACh. 24 - Prob. P24.29APGACh. 24 - Prob. P24.30APGACh. 24 - Prob. P24.31APGACh. 24 - Prob. P24.32BPGBCh. 24 - Integration decentralization and performance...Ch. 24 - Prob. P24.34BPGBCh. 24 - Prob. P24.35BPGBCh. 24 - Prob. P24.36BPGBCh. 24 - Prob. P24.37CPCh. 24 - Prob. 1CPCh. 24 - Prob. 2CPCh. 24 - Prob. 3CPCh. 24 - Prob. 4CPCh. 24 - The Thomson Toy Company manufactures toy building...Ch. 24 - Prob. 6CPCh. 24 - Prob. 7CPCh. 24 - The Thomson Toy Company manufactures toy building...Ch. 24 - Prob. 9CPCh. 24 - Prob. 10CPCh. 24 - Prob. 11CPCh. 24 - Prob. 12CPCh. 24 - Prob. 13CPCh. 24 - Prob. 14CPCh. 24 - Prob. 24.1DCCh. 24 - Prob. 24.1EICh. 24 - Fraud Case 24-1 Everybody knew Ed McAlister was a...
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