One subunit of Field Sports Company had the following financial results last month: (Click the icon to view the financial results.) Read the requirements Requirement 1. Complete the performance evaluation report for the subunit. (Enter a variance for each account as a positive number and select whether the variance is favorable or unfavorable. Enter the variance percent as a percentage rounded to two decimal places, X.XX%) Actual Flexible Flexible Budget % Variance Subunit x Results Budget Variance (For U) (For U) Net Sales Revenue $ 480.000 $ 453,000 % Variable Expenses 263,000 253,000 % Contribution Margin 217,000 $ 200,000 35,000 26,000 Traceable Fixed Expenses % $ 182 000 $ 174,000 Divisional Segment Margin Requirement 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? S This performance report includes therefore, this subunit must be Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $8,000 and exceeding 10% (both criteria must be met)? Management should investigate the following: (If a box is not used in the table, leave the box empty.) Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate Favorable expense variances Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances due to sales volume differences between budget and actual. Differences in sales volume are captured by the The flexible budget variance is due to Requirement 6. Will management place equal weight on each of the variances exceeding $8,000? Explain. Management will because Requirement 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain The performance report addresses the perspective of the balanced Scorecard performance measures tend to be indicators They typically Requirement 8. List one key performance indicator for the three other balanced Scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators you list. Complete the following table to identify one key performance indicator for the three other balanced Scorecard perspectives Balanced Scorecard Key performance perspective indicator - Data Table - X Flexible Budget Variance (F or U) % Variance (For U) Actual Results $ Subunit X Net Sales Revenue Variable Expenses Contribution Margin Traceable Fixed Expenses 480,000 $ 263,000 Flexible Budget 453,000 253,000 217,000 35,000 200,000 26,000 $ Divisional Segment Margin 182,000 $ 174,000 Print Done Requirements - X 1. Complete the performance evaluation report for the subunit (round to two decimal places) 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $8,000 and exceeding 10% (both criteria must be met)? 4. Should only unfavorable variances be investigated? Explain. 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. 6. Will management place equal weight on each of the variances exceeding $8,000? Explain. 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain. 8. List one key performance indicator for the three other balanced Scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators you list Print Done Requirement 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? This performance report includes therefore, this subunit must be Requirement 3. Which items shou criteria must be met)? hent's decision criteria is to investigate all variances equal to or exceeding $8,000 and exceeding 10% (both both revenue and cost data Management should investigate th e table, leave the box empty.) only cost data only revenue data Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $8,000 and exceeding 10% (both criteria must be met)? Management should investigate the following: (If a box is not used in the table, leave the box empty.) Contribution margin Net sales revenue Traceable fixed expenses Variable expenses favorable variances be investigated? Explain. Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate Favorable expense variances Requirement 5. Is it possible d sales volume? Explain. favorable as well as unfavorable variances The flexible budget variances only favorable variances budget and actual. Differences in sales volume are captured by the ance is due to only unfavorable variances Requirement 6 Will management place equal weight on each of the variances exceeding $8.0002 Explain Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate Favorable expense variances Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances V due to sales volume differences between budget and actual. Differ The flexible budget variance is due to indicate that the budget was prepared correctly may indicate costs are being cut that might impact future operations result in greater profits to the company Requirement 6 Will management place equal weight on each of the variances exceeding $8.0002 Fxplain Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances due to sales volume differences between budget and actual. Differences in sales volume are captured by the The flexible budget variance is due to - the variances exceeding $8,000? Explain. flexible budget because revenue center performance report sales volume variance, not the flexible budget variance addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances due to sales volume differences between budget and actual. Differences in sales volume are captured by the The flexible budget variance is due to Requirement 6. Will management place equal weight on each of the variances exceeding $8,000 actual prices and costs varying from standards. Management will bec sales volume variances Requirement 6. Will management place equal weight on each of the variances exceeding $8,000? Explain. Management will because Requirement 7. V Explain. e report The performance They typically not place as much weight on each of the variances which exceed $8,000 place equal weight on all variances place more weight on the variable expenses variance Requirement 6. Will management place equal weight on each of the variances exceeding $8,000? Explain. Management will because Requirement 7. Which balanced Scorecard perspective is being addressed through this performancer Explain. The performance report addresses the perspective of the balanced Scorecard. They typically all variances have a signficant impact on the company's bottom line. they will consider the percentage change also. variable expenses are more important than any of the other items. Requirement 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain. perspective of the balanced Scorecard. performance measures tend to be indicators The performance report addresses the They typically customer Requirement 8. List one key performar you list. ar balanced Scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators financial Complete the following table to identify internal business r for the three other balanced Scorecard perspectives. Balanced scorecard learning and growth Requirement 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain perspective of the balanced Scorecard. performance measures tend to be indicators The performance report addresses the They typically Customer Requirement 8. List one key performance indicator for the three other balanced Scorecard perspectiv you list h perspective is being addressed by the indicators Financial Complete the following table to identify one key performance indicator for the three other balanced Sco Internal business Balanced scorecard Key performance Learning and growth Requirement 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain. The performance report addresses the perspective of the balanced Scorecard. performance measures tend to be indicators They typically lag dicat Requirement 8. List one key performance indicator for the three other balanced Scorecard perspectives. Make sure to indicate which perspective is being addre you list. lead Requirement 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain perspective of the balanced Scorecard. performance measures tend to be indicators. The performance report addresses the They typically Requirement ee other balanced Scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators you list. forcast future performance. measure the results of past decisions. Complete the ndicator for the three other balanced Scorecard perspectives. Requirement 8. List one key performance indicator for the three other balanced Scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators you list Complete the following table to identify one key performance indicator for the three other balanced Scorecard perspectives. Balanced scorecard Key performance indicator perspective Customer perspective Financial perspective Internal business perspective Learning and growth perspective Balanced Scorecard perspective Key performance indicator customer satisfaction ratings hours spent training employees number of new products developed return on investment sales revenue growth