Management Accounting 2

which of the following elements provide orientation for a business according to the st. gallen management model? (check all)

which of the following is not a stakeholder

business plan elements are (check all)

which of the following is NOT a step to prepare a financial planning model:

Which of the following variables is usually proportinal to sales 

bugeting is the process of establishing company-wide objectives that serce as a deterrent to wast and inefficiency. 

the effectiveness of the budget program is directly related to its acceptance by all levels of management

budgeting always has the effect on human behavior of inspiring managers to higher levels of performance

one disadvantage of budgeting is that it DOES NOT facilitate the coordination of activitites within a business. 

the sales budget is the first budget prepared and each of the other budgets depend on it. 

the qantities of direct materials in the direct materials budget are derived from the formula: Desired ending direct materials units + direct materials units required for Production - Beginning direct materials units = required direct materials units to be purchased 

the manufacturing overhead budget shows only the expected indirect labor costs for the year

the budgeted income statement indicates the expected profitability of operations for the next year and provides the basis for evaluation company performance

long-range planning differs from budgeting in the time period involved, emphasis, and the amount of detail presented.

budgeting is NOT used in not-for-profit organizations because it is NOT necessary for these organizations to engage in profit planning. 

a formal written statement of managment's plans for a specified future time period, expressend in finanical terms is a(n)

which of the following is NOT a benefit of budgeting?

all of the following are financial budgets EXEPT the

the master budget includes all of the following EXCEPT

if required production units are 75' budgeted sales units are 65' required direct materials purchases units are 3' and beginnning finished goods units are 5' then desired ending findished goods units would be

in a static budget, the data may be modified or adjusted if activity changes more than a pecified amount during the year

flexible budgets can be prepared for each of the types of budgets included in the master budget

with a flexible budget, if production increases, budget allowances for variable costs should increase both directly and proportionately. 

flexible budget reports xonsist of two section: production data and cost data

Under responsibility accounting, the valuation of a manager's performance is based on the matters directly under that manager's control

The terms "controllable costs" and "non-controllable costs" are synonyms with variable costs and fixed costs, respectively. 

Only controllable costs are included in a responsibility performance report, and there is no distinction made between variable and fixed costs

A responsibility reporting system begins with the lowest level of responsibility in an organization and moves upward to each higher level. 

There are three types of responsibility centers: cost, segment, and investment

The primary basis for evaluating the performance of a manger of an investment center is return on investment. 

A static budget report is appropriate for 

the flexible budget report includes all of the following sections EXEPT

at 40' direct labor hours. the flexible budget for indirect labor is $160'. if $172' of indirect labor costs are incurred at 44' direct labor hours, the flexible budget report sould show the following difference for indirect laor

controllable fixed costs are deducted from the contribution margin to arrive at 

the numerator in computing return on investment is

The CVP income statement classifies costs as variable or fixed and computes a contribution margin

the margin of safety indicates how much sales must increase before a company will be operating at a profit

sales mix is the relative percentage in which each product is sold when a company sells more than one product

when multiple products exist, the break.even point in dollars is computed by dividing fixed costs by the weighted-average contribution margin

When a company has limited resources, management must decide which product to make and sell in order to maximize contibutionmargin ratio.