1 Quiz point 1 Exam point Candy Homework Pass 1 Homework point 1 Quiz point 1 Exam point Candy Homework Pass 1 Homework point 1 Quiz point 1 Exam point Candy Homework Pass 1 Homework point 1 Quiz point 1 Exam point Candy Homework Pass 1 Homework point 1 Quiz point 1 Exam point Candy Homework Pass 1 Homework point Performance Management Standard Costing Short Run Decisions PricingQuality
Internal Business Processes Learning and Growth Customer Financial
What are the balanced scorecard’s major stakeholder groups?
Used to determine what improvements will make an organization more profitable.
What is a performance measurement and evaluation system?
Performance evaluated based on master budget and non financial performance measures.
What is a discretionary cost center?
Performance evaluated based on variable costing.
What is a profit center?
A company performance measure was $280 based on total sales of $4,000; operating income of $1,000; beginning assets invested of $6,000; ending assets invested of $12,000; and a desired ROI of 8%.
What is the company’s Residual Income?
An evaluation tool used for direct materials, direct labor, and overhead.
What is a flexible budget?
Direct material price variance plus Direct material quantity variance.
What is the total material variance?
Budget variance plus volume variance.
What is total fixed overhead variance?
The amount of under- or overapplied overhead costs.
What is the total overhead variance?
Standard costing is used to evaluate this type of performance center.
What is a cost center?
The objective of this decision is to select the alternative that maximizes operating income.
What is a sell or process-further decision?
A cost incurred in the past and irrelevant to the decision.
What is a sunk cost?
A company makes pencils. The space currently devoted to the production of pencils could be used for storage if the manufacture of pencils is outsourced. This would eliminate $40,000 of rental expense currently incurred for storage space. The $40,000 is an example of this cost.
What is an example of opportunity cost?
Accepting a special order will be profitable when the revenue provided by the special order exceeds this cost.
What are the relevant costs to produce, package, and ship the special order?
A useful short run decision in areas that involve either relatively low skill levels or highly specialized knowledge.
What is outsourcing?
Gross margin method and return on assets method
What is cost-based pricing?
Cost plus or negotiated internal price.
What is transfer pricing?
A pricing method that reduces costs before they are incurred.
What is target costing?
Competitors’ prices, customer expectations, and cost of substitute products and services are all considerations when developing this type of price.
What must be considered when setting a cost-based price?
Determined by adding total production costs of the product to the total production costs times the gross margin markup percentage.
How is the gross margin-based price computed?
Internal failure costs and external failure costs.
What are nonconformance costs?
Conformance costs plus nonconformance costs.
What is the total cost of quality?
The time between the acceptance of a customer order and when production begins.
What is purchase order lead time?
Loss of potential orders due to poor quality is an example of this quality cost.
What is an example of an external failure cost?
If a company devotes time and money to the cost of a product or service’s conformance to customer standards, a decrease in these quality costs will occur.
What are nonconformance costs?