30 Questions
What is the quantity of actual materials used in production?
4,300 pounds
What is the total factory overhead in the actual results for May?
P220,500
What is the standard direct labor hours (DLH) allowed for the capacity attained?
31,500 hours
What is the budgeted fixed overhead for May?
P162,000
What is the variable overhead rate per hour?
P2.00
What is the controllable variance for the factory overhead?
P350 favorable
What is the main reason why residual income may not align with the overall goal of the firm?
It may result in division managers making decisions that are in their own best interest
What is the formula to calculate ROI?
ROI = (Sales Revenue - Operating Expenses) / Invested Capital
What is the ROI of Christian Company?
13.33%
What is the purpose of residual income?
To align the decisions of division managers with the overall goal of the firm
What is the invested capital of Christian Company?
P6,000,000
What is the sales revenue of Christian Company?
P5,000,000
What is the basis for the calculation of the volume variance?
Normal activity in hours
What is the total overhead application rate per standard direct labor hour?
P2.50
Which of the following is a characteristic of a cost center?
Accountability for costs
What is the distinguishing characteristic of an investment center?
Investment of funds
What is the value of the actual total overhead?
P40,000
Which of the following responsibility centers have managers who are held accountable for costs and revenues?
Cost centers and Profit centers
What is the total number of units expected to be sold for the year according to Sussex Company's sales budget?
480,000
How many units of finished goods inventory should be at the end of the first quarter according to Sussex Company's inventory policy?
24,000
What is the expected sales growth rate per month for Lorie Company?
5% per month
What is the desired monthly ending inventory in units of finished product for Lorie Company?
80% of the next month's estimated sales
How many pounds of direct materials are required to produce one unit of finished product for Lorie Company?
4 pounds
What is the total cost of direct materials required to produce one unit of finished product for Lorie Company?
P5.00 per unit
Which of the following performance measures would be part of those used for the internal business processes perspective in a balanced scorecard?
Cycle time
What does the balanced scorecard primarily describe?
A strategic performance measurement and management framework
In comparison to the balanced scorecard, what does value-based management primarily focus on?
Financial measures
What is the term for a visual representation of the relationship between customer satisfaction and return on investment?
Strategy map
Which of the following is not a component of the balanced scorecard?
Supply chain perspective
What is the term for a framework that measures an organization's performance from four different perspectives?
Balanced scorecard
Assess your knowledge of performance management systems with this quiz. Covers key concepts and principles related to performance management. Ideal for BSMA 3rd-year students.
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