91Ó°ÊÓ

Budgetary control involves all but one of the following: a. modifying future plans. b. analyzing differences. c. using static budgets but not flexible budgets. d. determining differences between actual and planned results.

A production manager in a manufacturing company would most likely receive a: a. sales report. b. income statement. c. scrap report. d. shipping department overhead report.

A static budget is: a. a projection of budget data at several levels of activity within the relevant range of activity. b. a projection of budget data at a single level of activity. c. compared to a flexible budget in a budget report. d. never appropriate in evaluating a manager's effectiveness in controlling costs.

A static budget is useful in controlling costs when cost behavior is: a. mixed. c. variable. b. fixed. d. linear.

Under responsibility accounting, the evaluation of a manager's performance is based on matters that the manager: a. directly controls. b. directly and indirectly controls. c. indirectly controls. d. has shared responsibility for with another manager.

At 9,000 direct labor hours, the flexible budget for indirect materials (a variable cost) is \(\$ 27,000\). If \(\$ 28,000\) of indirect materials costs are incurred at 9,200 direct labor hours, the flexible budget report should show the following difference for indirect materials: a. \(\$ 1,000\) unfavorable. c. \(\$ 400\) favorable. b. \(\$ 1,000\) favorable. d. \(\$ 400\) unfavorable.

Responsibility centers include: a. cost centers. c. investment centers. b. profit centers. d. All of the above.

Responsibility reports for cost centers: a. distinguish between fixed and variable costs. b. use static budget data. c. include both controllable and noncontrollable costs. d. include only controllable costs.

The accounting department of a manufacturing company is an example of: a. a cost center. c. an investment center. b. a profit center. d. a contribution center.

To evaluate the performance of a profit center manager, upper management needs detailed information about: a. controllable costs. b. controllable revenues. c. controllable costs and revenues. d. controllable costs and revenues and average operating assets.