Performance Management System (Set 1) Quiz

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What is the quantity of actual materials used in production?

3,700 pounds

4,000 pounds

4,300 pounds (correct)

4,900 pounds

What is the total factory overhead in the actual results for May?

P200,000

P220,500 (correct)

P230,000

P210,000

What is the standard direct labor hours (DLH) allowed for the capacity attained?

30,500 hours

32,500 hours

31,500 hours (correct)

33,500 hours

What is the budgeted fixed overhead for May?

P162,000 Signup and view all the answers

What is the variable overhead rate per hour?

P2.00 Signup and view all the answers

What is the controllable variance for the factory overhead?

P350 favorable Signup and view all the answers

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 Signup and view all the answers

What is the formula to calculate ROI?

ROI = (Sales Revenue - Operating Expenses) / Invested Capital Signup and view all the answers

What is the ROI of Christian Company?

13.33% Signup and view all the answers

What is the purpose of residual income?

To align the decisions of division managers with the overall goal of the firm Signup and view all the answers

What is the invested capital of Christian Company?

P6,000,000 Signup and view all the answers

What is the sales revenue of Christian Company?

P5,000,000 Signup and view all the answers

What is the basis for the calculation of the volume variance?

Normal activity in hours Signup and view all the answers

What is the total overhead application rate per standard direct labor hour?

P2.50 Signup and view all the answers

Which of the following is a characteristic of a cost center?

Accountability for costs Signup and view all the answers

What is the distinguishing characteristic of an investment center?

Investment of funds Signup and view all the answers

What is the value of the actual total overhead?

P40,000 Signup and view all the answers

Which of the following responsibility centers have managers who are held accountable for costs and revenues?

Cost centers and Profit centers Signup and view all the answers

What is the total number of units expected to be sold for the year according to Sussex Company's sales budget?

480,000 Signup and view all the answers

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 Signup and view all the answers

What is the expected sales growth rate per month for Lorie Company?

5% per month Signup and view all the answers

What is the desired monthly ending inventory in units of finished product for Lorie Company?

80% of the next month's estimated sales Signup and view all the answers

How many pounds of direct materials are required to produce one unit of finished product for Lorie Company?

4 pounds Signup and view all the answers

What is the total cost of direct materials required to produce one unit of finished product for Lorie Company?

P5.00 per unit Signup and view all the answers

Which of the following performance measures would be part of those used for the internal business processes perspective in a balanced scorecard?

Cycle time Signup and view all the answers

What does the balanced scorecard primarily describe?

A strategic performance measurement and management framework Signup and view all the answers

In comparison to the balanced scorecard, what does value-based management primarily focus on?

Financial measures Signup and view all the answers

What is the term for a visual representation of the relationship between customer satisfaction and return on investment?

Strategy map Signup and view all the answers

Which of the following is not a component of the balanced scorecard?

Supply chain perspective Signup and view all the answers

What is the term for a framework that measures an organization's performance from four different perspectives?

Balanced scorecard Signup and view all the answers