25. budgeting is when budgets are formulated with the active participation of all

affected employees.

A) Rolling

B) Team

C) Participative

D) Financial

26. The following information is available for the Peter Company:

Sales $150,000

Invested capital 156,250

Return on investment 10%

What is the return on sales?

A) 100.00%

B) 10.42%

C) 62.50%

D) 10.00%

27. An algebraic equation used by managers to describe the relationship between a cost

and its cost drivers) is called a

A) cost analysis

B) cost behavior

C) cost system

D) cost function

28. An ideal performance metric would measure and reward the manager for___

factors and neither reward nor punish the manager for____ factors.

A) controllable: uncontrollable

B) uncontrollable; controllable

C) unallocated; allocated

D) allocated; unallocated