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chapter 22
Tools for Enterprise
Performance Evaluation
goals discussion goals achievement fill in the blanks multiple choice problems check list and key terms
1. A is a responsibility unit in which a manager is held accountable for cost incurrence.
2. An is the most complex of the responsibility centers.
3. To measure the success or failure of an investment center manager, many companies employ a measure known as .
4. A report furnishes management with feedback of operating results and is used for purposes of evaluation and control.
5. A process whereby performance assessment and corrective measures focus on what has gone wrong: .
6. A budget is a budget developed for one level of activity, whereas a budget covers a range of activity.
7. A is the expected quantity or cost of input required in producing a good or service.
8. A reveals the standard quantity and price of the production components necessary to produce a single unit of output.
9. An standard is one that can be achieved by efficient but not perfect operations.
10. The computation and examination of variances is consistent with the concept of management by .
11. The is the amount of input that should have been used in manufacturing activities during the period.
12. The variance for labor is computed in much the same manner as the material price variance for materials.
13. By comparing the actual labor hours at standard prices to the standard labor requirements at standard prices, one is able to compute the labor variance.
14. The variable total overhead variance consists of two separate variances known as the , and .
15. A focuses on financial and nonfinancial performance aspects, identifying key metrics that are consistent with the overall entity objectives.