The standard direct labour rate of your company is 10 per unit of product and 30 per hour. The budgeted level of sales is 3000 units. The actual direct labour rate of your company is 20 per unit of product sold and 40 per hour. The actual level of sales is 4,000 units. What is the direct labour efficiency variance expressed in monetary terms?

---------

Company X has two divisions: A and B. Division A sources material at 8/unit. Division A's fixed costs are 14,000/month and normal activity is 700 units/month. Division A applies further processing that costs 6/unit. A transfer price set at full cost plus a 10% markup would be

-----------

Which of the following statements about the BSC is incorrect? 1)The BSC helps managers to consider all important operational measures together, including the employee perspective. This enables managers to see whether improvement can be brought into the organization as a result of the employees role in improving the business processes.

2)Cause-and-effect relationships in the BS can be expressed by a sequence of if-then statements.

3)Every measure selected for a balanced scorecard should be an element of a chain of cause-and-effect relationships that communicates the meaning of the business unit's strategy to the organization.

4)Kaplan and Norton think that strategy can be viewed as a set of hypotheses about cause-and-effect, thus enabling a scorecard to tell the story of a business unit's strategy through a sequence of cause-and-effect relationships.

---------------------

Which of the following is an objective of the internal business perspective? (A)

Increasing process quality. (B) Reducing product cost per unit. (C) Improving product quality. (D) Improving product functionality.

-------------------------

Which of the following is not a benefit of the BSC? A Providing a comprehensive framework for translating company's strategic goals into a coherent set of performance measures. B Promoting the active formulation of organizational strategy by making highly visible the linkage of cause-and-effect relationships which are developed on strong theoretical grounds and empirical evidence. (C) Helping managers to consider all important operational measures together enables managers to see whether improvement in one area may have been at the expense of the other. D Bringing together in a single report four different perspectives on a company's performance that relate to many of the disparate elements of a company's competitive agenda.

------------------------------------------

Company X has two divisions: A and B. Division A sources material at 12/unit. Division A's fixed costs are 10,000/month and normal activity is 1000 units/month. Division A applies further processing that costs 3/unit. Division B has further processing costs of 6/unit and fixed costs of 8,000 based on normal activity of 1,000 units. The market price of the final product is 42. A transfer price set at full cost plus 16% would be (A Acceptable to Neither division B Acceptable to both Divisions C) Acceptable to Company X D Acceptable to Division A only

---------------------------------- Which of the following statements about the BC is incorrect? 1)Measures of internal business processes are in turn assumed to be the drivers of measures of customer perspective. 2)Measures of the customer perspective are the drivers of the financial perspective. 3)Measures of organizational learning and growth are assumed to be the drivers of the internal business processes. 4)Measurements relating to the financial perspective are assumed to be predictors of future financial performance.

------------------------------------

LUZ Ltd budgeted to generate the following sales during a three month period: January: E900,000, February: E1000,000, and March: 1,600,000. The timing of cash receipts is 50% in the month of sale, 30% in the following month, and 20% two months after the sale. How much cash should LUZ Ltd forecast to receive during the entire 3 month period?

-----------------------------------

Which of the following measures does not belong to the financial perspective? A Percentage reduction in cost per unit. B Sales growth percentage. C Percentage of revenues from new markets. D) Percentage of market share.

------------------------------------------

Which of the following statements about Kaplan and Norton definition of strategy is incorrect? 1)Strategy entails identifying the critical internal and business processes that the unit must excel at to deliver the value propositions to customers in the targeted market segments.

2)Strategy includes choosing the market and customer segments the business unit intends to serve.

3)Strategy implies selecting the individual and organizational capabilities required for the internal and financial objectives.

4)Strategy consists of using the BC in order to minimize information overload and avoid a proliferation of measures, each perspective ought to comprise four to five separate measures. Thus, the scorecard can provide top management with a fast but comprehensive view of the organizational unit (i.e. a division/strategic business unit).

----------------------------

The traditional management accounting control system focuses primarily on the following: A Cost containment B Balanced scorecard

C Non-financial measures (D) Techniques applied on an ad hoc basis