Which of the following is used in the ROI (return on investment) calculation?

Group of answer choices

net operating income in the numerator

net operating income in the denominator

The variance that is most useful in assessing the performance of the purchasing department manager is:

Group of answer choices

the materials price variance

the materials quantity variance

the direct labor rate variance

the direct labor efficiency variance

When preparing a flexible budget for a car wash, some cost are considered fixed expenses, while others are considered a variable cost. Which of the following would be considered a fixed expense for a car wash?

Group of answer choices

depreciation on the equipment

cleaning supplies

electricity

machinery repairs

Which of the following is not an example of a responsibility center?

Group of answer choices

contribution center

profit center

cost center

investment center

average operating assets in the numerator

fixed assets in the denominator

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Question 203 pts

The purpose of the Information Technology Department of Fullerton Corporation is to assist the various departments of the corporation with their information needs free of charge. The Information Technology Department would best be evaluated as a:

Group of answer choices

cost center

revenue center

profit center

intelligent center

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Question 213 pts

Which of the following is not a benefit of budgeting?

Group of answer choices

it reduces the need for tracking actual cost activity

it uncovers potential bottlenecks

it provides a communication of the company's goals

it sets benchmarks for evaluation performance

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Question 223 pts

The purpose of the production budget is to:

Group of answer choices

inform the production team how many units of product must be manufactured in each month, quarter, or year

to inform the purchasing department how much direct materials to purchase in each month, quarter, or year

to help the marketing team prepare the sales budget

to use at the bank to apply for financing

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Question 233 pts

What department should be held accountable for an unfavorable direct materials price variance?

Group of answer choices

purchasing

production

engineering

human resources

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Question 243 pts

Sunnyvale Corporation makes collections on sales according to the following schedule:

40% in the month of sale

50% in the month after the sale

10% two months after the sale

Here are their expected sales for the first quarter:

January............$70,000

February..........$50,000

March...............$30,000

How much cash will they collect in the month of March?

Group of answer choices

$44,000

$30,000

$42,000

$37,000

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Question 253 pts

The purpose of a flexible budget is to:

Group of answer choices

compare actual and budgeted results at virtually any level of activity

give management excuses to justify why they have large variances

reduce the time to prepare the annual budget

eliminate fluctuations in production reports by ignoring variable costs