Performance Management System (Set 1) Quiz
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Questions and Answers

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?

    <p>P162,000</p> Signup and view all the answers

    What is the variable overhead rate per hour?

    <p>P2.00</p> Signup and view all the answers

    What is the controllable variance for the factory overhead?

    <p>P350 favorable</p> Signup and view all the answers

    What is the main reason why residual income may not align with the overall goal of the firm?

    <p>It may result in division managers making decisions that are in their own best interest</p> Signup and view all the answers

    What is the formula to calculate ROI?

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

    What is the ROI of Christian Company?

    <p>13.33%</p> Signup and view all the answers

    What is the purpose of residual income?

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

    What is the invested capital of Christian Company?

    <p>P6,000,000</p> Signup and view all the answers

    What is the sales revenue of Christian Company?

    <p>P5,000,000</p> Signup and view all the answers

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

    <p>Normal activity in hours</p> Signup and view all the answers

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

    <p>P2.50</p> Signup and view all the answers

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

    <p>Accountability for costs</p> Signup and view all the answers

    What is the distinguishing characteristic of an investment center?

    <p>Investment of funds</p> Signup and view all the answers

    What is the value of the actual total overhead?

    <p>P40,000</p> Signup and view all the answers

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

    <p>Cost centers and Profit centers</p> 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?

    <p>480,000</p> 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?

    <p>24,000</p> Signup and view all the answers

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

    <p>5% per month</p> Signup and view all the answers

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

    <p>80% of the next month's estimated sales</p> Signup and view all the answers

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

    <p>4 pounds</p> 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?

    <p>P5.00 per unit</p> 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?

    <p>Cycle time</p> Signup and view all the answers

    What does the balanced scorecard primarily describe?

    <p>A strategic performance measurement and management framework</p> Signup and view all the answers

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

    <p>Financial measures</p> Signup and view all the answers

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

    <p>Strategy map</p> Signup and view all the answers

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

    <p>Supply chain perspective</p> Signup and view all the answers

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

    <p>Balanced scorecard</p> Signup and view all the answers

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