Which of the following is not a component of a time value of money problem? The amount of cash received. The time until the cash is received. The opportunity costs of the alternative actions. The required rate of return. 5. Which of the following techniques uses time value of money? Payback period Internal rate of return Accounting rate of return Relative sales value method 6. Which of the following is not a reason that actual results may deviate from planned performance? A bottom-up approach to budgeting was used. Managers have done a particularly good or particularly poor job of managing operations. Conditions have changed since the budget was developed. The budget was poorly conceived and constructed. 7. The amount of direct material that must be purchased during a period depends on the amount of direct material needed for production. available in the beginning inventory. desired as ending inventory. All of the above are correct. 8. The difference between standard costs and budgeted costs is that standard costs refer to a single unit while budgeted costs refer to the cost, at standard, for the total number of budgeted units. are calculated under ideal conditions, while budgeted costs are calculated for attainable conditions. are calculated for material while budgeted costs are calculated for labor. are part of the management accounting system, while budgets are part of the financial accounting system. 9. The overhead volume variance indicates that raw materials have been wasted. management has done a poor job of controlling costs. the quantity of production differed from what was anticipated. labor rates were higher than expected. 10. The type of center that has responsibility for generating revenue as well as controlling costs is a(n) investment center. cost center. business center. profit center. 11. Which of the following is not an advantage of decentralization for a company? Subunit managers have better information. Subunit managers will act to benefit the organization as a whole. Subunit managers can respond quicker to changing circumstances. Subunit managers can receive training to move into top level management positions. 12. The ratio that measures the return earned independently of how the firm is financed is the return on stockholders' equity. price earnings ratio. earnings per share. return on assets