A responsibility accounting system is based on the organizational structure of the firm.

true   Correct or    falseIncorrect

 

Under which type of responsibility unit are operations or departments not directly involved in revenue generating activities?

investment center    Incorrect or    cost centerCorrect

 

Both profit centers and investment centers hold managers accountable for the revenues and expenses of the responsibility unit.

true   Incorrect or    falseCorrect

 

When evaluating performance under a responsibility accounting system, management should be held accountable for revenues, expenses, and investments that are both controllable and uncontrollable.

true    Incorrect or   falseCorrectCorrect

 

As production levels fluctuate, which of the following budgets tend to become meaningless.

static   Correct or    flexibleIncorrect

 

With a flexible budget, which cost component is the same no matter the presumed level of activity?

variable production cost    Incorrect or    fixed factory overheadCorrect

 

Standard costs are used in the construction of both static and flexible budgets.

true   Correct or    falseIncorrect

 

Which standard takes into account normal inefficiencies related to scrap, waste, spoilage, and worker inefficiencies?

ideal standard   Incorrect or    acheivable standardCorrect

 

With an ideal standard, workers can be expected to perform better because of the continued motivation to try and achieve the unachievable.

true    Incorrect or   falseCorrect

 

The materials quantity variance is computed by comparing the actual quantity of materials used to the standard quantity of materials which should have been used for the production achieved. Which prices should be used in this comparison?

standard prices   Correct or    actual pricesIncorrect

 

The net of the labor rate variance and labor efficiency variance will produce the total labor variance.

true    Correct or    falseIncorrect

 

If overhead is applied on the basis of direct labor hours, then the variable overhead efficiency variance calculations incorporate the same number of actual and standard hours as used in the computation of the direct labor variances.

true   Correct or   falseIncorrect

 

All unfavorable variances should be investigated.

true   Incorrect or   falseCorrect

 

The use of highly skilled employees beyond that anticipated may result in unfavorable labor rate variances, and what type of labor efficiency variances?

favorable    Correct or    unfavorable Incorrect

 

A balanced scorecard approach to performance evaluation might consider financial, customer, and/or process outcomes.

yes    Correct or    noIncorrectIncorrect