22) company is analyzing month-end results compared to both static and flexible budgets. This month the actual variable expenses per unit were lower than projected in the static budget. What kind of variance would that produce? A) Favorable flexible budget variance for variable expense B) Unfavorable sales volume variance for variable expenses C) Unfavorable flexible budget variance for variable expenses D) Favorable sales volume variance (or variable expenses 23) Which of the following is one of the reasons why companies use standard costs? A) To insure the accuracy of the financial records B) To set performance targets C) To Increase sales D) TO bolster good internal controls and prevent shrinkage 24) Which of the following is NOT a potential advantage of decentralization? A) Top management can use their time to concentrate on long-term strategic planning rather than daily operations. B) Decentralization promote, goal congruence and coordination. C) It improves the motivation and retention of division managers. D) Customer relations are generally improved. 25) The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows: Sweet Dreams is considering eliminating the pillow product line. If they do so, they will be able eliminate $76,000 of total fixed costs. In that event how would that business decision impact operating income? A) Increase $42,000 C) Decrease $60,000 B) Increase $76,000 D) Increase $16,000 22) company is analyzing month-end results compared to both static and flexible budgets. This month the actual variable expenses per unit were lower than projected in the static budget. What kind of variance would that produce? A) Favorable flexible budget variance for variable expense B) Unfavorable sales volume variance for variable expenses C) Unfavorable flexible budget variance for variable expenses D) Favorable sales volume variance (or variable expenses 23) Which of the following is one of the reasons why companies use standard costs? A) To insure the accuracy of the financial records B) To set performance targets C) To Increase sales D) TO bolster good internal controls and prevent shrinkage 24) Which of the following is NOT a potential advantage of decentralization? A) Top management can use their time to concentrate on long-term strategic planning rather than daily operations. B) Decentralization promote, goal congruence and coordination. C) It improves the motivation and retention of division managers. D) Customer relations are generally improved. 25) The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows: Sweet Dreams is considering eliminating the pillow product line. If they do so, they will be able eliminate $76,000 of total fixed costs. In that event how would that business decision impact operating income? A) Increase $42,000 C) Decrease $60,000 B) Increase $76,000 D) Increase $16,000
