Complete the following statements with one of the terms listed here. You may use a term more than once. Some terms may not be used at all.

Capital turnover	Common fixed expenses	Cost center
Direct fixed expenses	Favorable variance	Flexible budget
Flexible budget variance	Goal congruence	Investment center
Key performance indicators (KPIs)	Management by exception	Master budget variance
Profit center	Return on Investment (ROI)	Revenue center
Sales margin	Unfavorable variance	Volume variance

a.	A(n) is a budget prepared for a different volume level than that which was originally anticipated.

b.	The difference between the flexible budget and actual results is called the flexible budget variance .

c.

Capital turnover Common fixed expenses Cost center Direct fixed expenses Favorable variance Flexible budget Flexible budget variance Goal congruence Investment center Key performance indicators (KPIs) Management by exception Master budget variance Profit center Return on Investment (ROI) Revenue center Sales margin Unfavorable variance Volume variance measures the profitability of a division relative to the size of its assets.

d.

If budgeted salary expense is higher than the actual salary expense, then a(n) capital turnover common fixed expenses cost center direct fixed expenses favorable variance flexible budget flexible budget variance goal congruence investment center key performance indicators (KPIs) management by exception master budget variance profit center return on investment (ROI) revenue center sales margin unfavorable variance volume variance will result.

e.

A(n) capital turnover common fixed expenses cost center direct fixed expenses favorable variance flexible budget flexible budget variance goal congruence investment center key performance indicators (KPIs) management by exception master budget variance profit center return on investment (ROI) revenue center sales margin unfavorable variance volume variance manager is responsible for generating revenue.

f.

The capital turnover common fixed expenses cost center direct fixed expenses favorable variance flexible budget flexible budget variance goal congruence investment center key performance indicators (KPIs) management by exception master budget variance profit center return on investment (ROI) revenue center sales margin unfavorable variance volume variance arises only because the actual volume sold differs from the volume originally anticipated in the master budget.

g.

Capital turnover Common fixed expenses Cost center Direct fixed expenses Favorable variance Flexible budget Flexible budget variance Goal congruence Investment center Key performance indicators (KPIs) Management by exception Master budget variance Profit center Return on Investment (ROI) Revenue center Sales margin Unfavorable variance Volume variance shows how much sales revenue is generated with every $1.00 of assets.

h.

If budgeted sales revenue is greater than the actual sales revenue, then a(n) capital turnover common fixed expenses cost center direct fixed expenses favorable variance flexible budget flexible budget variance goal congruence investment center key performance indicators (KPIs) management by exception master budget variance profit center return on investment (ROI) revenue center sales margin unfavorable variance volume variance will result.

i.

j.	The legal department of a manufacturer is considered to be a(n)

k.	The headquarters for an international consulting firm is considered to be a(n)

l.	Fixed expenses that can be traced to the segment are called

m.	shows how much income is generated for every $1.00 of sales.

n.

o.	The difference between actual results and the master budget is called the .

p.	When the goals of the segments managers in a company are the same, then

q.	The local branch office of a national bank is considered to be a(n) .

r.	Fixed expenses that cannot be traced to the segment are called

Click to select your answer(s).