a. Which of the following is not a measure of performance for a balanced scorecard?

Defect rates

A hold strategy

Customer satisfaction

Stock price

b. Oil to keep a factory machinery lubricated is an example of

Indirect Material: Yes & Overhead: No

Indirect Material: No & Overhead: Yes

Indirect Material: No & Overhead: No

Indirect Material: Yes & Overhead: Yes

c. Assume you are planning a spring break ski trip to Colorado. You plan to stay at a lodge that has a special where the lodge charges you a flat fee of $25 for each package of ten ski lift rides. You believe you will ride the ski lift 40 times during the week, so you budget $100. The ski lift charge is an example of a

fixed cost.

step cost.

variable cost.

mixed cost.

d. Helens Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Helens offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1230 per month, with part of their pay coming from client tips. Helen pays rent and overhead costs of $2200 per month on the facility. Because of the quick nature of the service, Helen doesnt have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.55 each. She also provides shampoo and conditioner for each client at a cost of $1.05 per client. The average price for a haircut is $10. Helen pays herself $6000 per month. What is Helens contribution margin ratio?

79.2%

16.0%

5.0%

84.0%

e. At the breakeven point,

sales revenue equals zero.

sales revenue equals total costs.

contribution margin equals total variable costs.

operating income equals total costs.