# Quiz 16: Operational Performance Measurement: Further Analysis of Productivity and Sales

Business

Q 1Q 1

Which one of the following uses the number of units of an input factor in its assessment of productivity?
A)Partial financial productivity.
B)Total productivity.
C)Operational productivity.
D)Partial productivity.

Free

Multiple Choice

C

Q 2Q 2

Which one of the following is a productivity measure that focuses only on the relationship between one of the inputs and the output attained?
A)Financial productivity.
B)Total productivity.
C)Total financial productivity.
D)Productivity.
E)Partial productivity.

Free

Multiple Choice

E

Q 3Q 3

Which one of the following does not use the dollar amount of the input in assessing productivity?
A)Financial productivity.
B)Total productivity.
C)Operational productivity.
D)Productivity.
E)Partial financial productivity.

Free

Multiple Choice

C

Q 4Q 4

Which one of the following measures the relationship between the output attained and the total input costs of all the required input resources?
A)Partial financial productivity.
B)Total productivity.
C)Partial operational productivity.
D)Total financial productivity.
E)Partial productivity.

Free

Multiple Choice

Q 5Q 5

Productivity can be thought of as:
A)The relationship between what is produced and the capacity to produce.
B)Doing more with less.
C)The ratio of output to input.
D)Throughput margin divided by output.

Free

Multiple Choice

Q 6Q 6

A primary objective in measuring productivity is to improve operations either by using fewer inputs to produce the same output, or to produce:
A)More quickly.
B)More effectively.
C)With fewer constraints.
D)More outputs with the same inputs.
E)More outputs with more inputs.

Free

Multiple Choice

Q 7Q 7

A measure of productivity can be either:
A)Operational or financial.
B)Total or segmented.
C)Short-term or long-term.
D)Activity-based or TOC based.

Free

Multiple Choice

Q 8Q 8

A partial operational productivity measure:
A)Uses physical units in both the numerator and denominator.
B)Is harder to understand than a partial financial productivity measure.
C)Is affected by price changes and other factors.
D)Is a comprehensive productivity measure.
E)Has the advantage of considering the effects of both speed and quantity of a resources input on productivity.

Free

Multiple Choice

Q 9Q 9

The experience of many firms is that improvements in quality:
A)Decrease productivity.
B)Have no significant effect on productivity.
C)First increase, and then decrease productivity.
D)Increase productivity.
E)Restrict productivity improvements.

Free

Multiple Choice

Q 10Q 10

Efforts to improve productivity should be focused only on:
A)Quality.
B)Non-value-added activities.
C)Value-added activities.
D)Inputs.
E)Outputs.

Free

Multiple Choice

Q 11Q 11

One major problem in measuring the productivity of a not-for-profit organization is the absence of:
A)Overhead costs.
B)A common measure for its outputs.
C)Mandatory financial reporting.
D)Materials costs.

Free

Multiple Choice

Q 12Q 12

A selling price variance is:
A)Further divided into separate sales quantity and sales mix variances.
B)Further divided into separate revenue and quantity variances.
C)Not further divided.
D)Further divided into separate flexible budget and sales volume variances.
E)Further divided into separate variable and fixed variances.

Free

Multiple Choice

Q 13Q 13

The sales volume variance is:
A)Further divided into separate sales quantity and sales mix variances.
B)Further divided into separate revenue and quantity variances.
C)Not further divided.
D)Further divided into separate flexible budget and sales volume variances.
E)Further divided into separate variable and fixed variances.

Free

Multiple Choice

Q 14Q 14

The two major contributing factors to a sales volume variance are deviations in:
A)Market size and market share.
B)Market size and sales quantity.
C)Sales mix and selling price.
D)Sales mix and sales quantity.
E)Sales price and sales quantity.

Free

Multiple Choice

Q 15Q 15

The sales mix variance for a firm is ultimately expressed in terms of:
A)Units.
B)Ratios.
C)Percentages.
D)Mixes.
E)Dollars.

Free

Multiple Choice

Q 16Q 16

An unfavorable sales mix variance arises for a product when the:
A)Actual units sold are greater than the budgeted units to be sold.
B)Actual units sold are less than the budgeted units to be sold.
C)Actual sales mix percentage is less than the budgeted sales mix percentage.
D)Budgeted sales mix percentage is less than the actual sales mix percentage.
E)Total actual sales dollar from the product is less than the budgeted sales dollar for the product.

Free

Multiple Choice

Q 17Q 17

When the actual sales-mix shifts toward a mix of products with lower contribution margins, there will be negative effects on a firm's:
A)Sales mix and sales quantity variances.
B)Sales quantity and sales volume variances.
C)Sales volume and market mix variances.
D)Market mix and sales mix variance.
E)Sales mix and sales volume variances.

Free

Multiple Choice

Q 18Q 18

When the mix of products sold shifts toward the high contribution margin product, the total:
A)Sales mix variance is favorable.
B)Sales volume variance is favorable.
C)Market mix variance is favorable.
D)Sales mix variance is unfavorable.
E)Sales price variance is favorable.

Free

Multiple Choice

Q 19Q 19

The market size variance arises because of changes:
A)In the total market size of the firm's product.
B)In the firm's proportion in the total market.
C)In the number of firms in the market.
D)In the firm's total sales volume.

Free

Multiple Choice

Q 20Q 20

Decreasing selling prices in order to secure higher sales volumes or market shares:
A)Will always generate higher sales volumes and market shares.
B)Can have a negative impact on a firm's profitability.
C)Should not usually affect profitability.
D)Should not usually affect contribution margins.
E)Should not usually affect sales mix.

Free

Multiple Choice

Q 21Q 21

The sales quantity variance of a firm arises when the:
A)Mixes of individual products sold differ from the budgeted mixes to be sold.
B)Total units of all products sold differ from the budgeted total units to be sold.
C)Total units of a product sold differ from the budgeted units of the product to be sold.
D)Number of products sold differs from the budgeted number of products to be sold.
E)Actual market size differs from the budgeted market size.

Free

Multiple Choice

Q 22Q 22

A firm with a declining market share percentage may still earn a higher operating income if the:
A)Market as a whole is also declining.
B)Market as a whole is stable.
C)Market as a whole is shifting.
D)Market as a whole is growing.
E)Firm reduces operating costs.

Free

Multiple Choice

Q 23Q 23

The market share variance is:
A)(Budgeted contribution margin per unit - actual contribution margin per unit) x (units sold).
B)(Actual market size in units - budgeted market size in units) x (weighted-average budgeted contribution margin per unit).
C)(Actual market size in units - budgeted market size in units) x (weighted-average budgeted contribution margin per unit) x (the budgeted market share).
D)(Actual market share - budgeted market share) x (budgeted total market size) x (weighted average budgeted contribution margin per unit).
E)(Actual market share - budgeted market share) x (actual total market size) x (weighted average budgeted contribution margin per unit).

Free

Multiple Choice

Q 24Q 24

Weighted-average budgeted contribution margin per unit is:
A)Actual total contribution margin ÷ actual total units.
B)Actual total contribution margin ÷ budgeted total units.
C)Budgeted total contribution margin ÷ actual total units.
D)Budgeted total contribution margin ÷ budgeted total units.
E)Sum of budgeted contribution margin per unit of all products ÷ number of products.

Free

Multiple Choice

Q 25Q 25

(Units sold - budgeted sales units) x (Budgeted contribution margin per unit) equals:
A)Sales-mix variance.
B)Market size variance.
C)Sales quantity variance.
D)Sales volume variance.
E)Flexible budget variance.

Free

Multiple Choice

Q 26Q 26

Which one of the following is the result of the [(units sold) x (actual selling price per unit)] - [(units sold) x (budgeted selling price per unit)]:
A)Sales efficiency variance.
B)Sales quantity variance.
C)Selling price variance.
D)Sales mix variance.
E)Sales volume variance.

Free

Multiple Choice

Q 27Q 27

(Budgeted contribution margin per unit) x (units sold - units budgeted to be sold) x (budgeted sales mix of the product) equals:
A)Sales efficiency variance.
B)Sales quantity variance.
C)Sales price variance.
D)Sales mix variance.
E)Sales volume variance.

Free

Multiple Choice

Q 28Q 28

Which one of the following is a result of the difference between the actual sales mix and the budgeted sales mix?
A)Sales efficiency variance.
B)Sales quantity variance.
C)Sales price variance.
D)Sales mix variance.
E)Sales volume variance.

Free

Multiple Choice

Q 29Q 29

(Budgeted sales mix- actual sales mix) x (total quantity sold) x (budgeted contribution margin per unit of the product) equals:
A)Sales efficiency variance.
B)Sales quantity variance.
C)Sales price variance.
D)Sales mix variance.
E)Sales volume variance.

Free

Multiple Choice

Q 30Q 30

The effect of changes in the total industry sales of the firm's product is measured by:
A)Market mix variance.
B)Market share variance.
C)Market price variance.
D)Market quantity variance.
E)Market size variance.

Free

Multiple Choice

Q 31Q 31

The effect of changes in a product's proportion of the total market are measured by:
A)Market mix variance.
B)Market share variance.
C)Market price variance.
D)Market quantity variance.
E)Market size variance.

Free

Multiple Choice

Q 32Q 32

Sales volume variances can have significant implications for strategic management. An unfavorable sales volume variance may indicate that:
A)The industry is in decline.
B)The company needs a new competitive strategy.
C)Product mix changes are favorable but quantity variances are unfavorable.
D)Labor productivity needs to be addressed

Free

Multiple Choice

Q 33Q 33

Darwin, Inc. provided the following information (round calculations to two significant digits): What is the actual partial productivity ratio?
A)0.97 unit per gallon.
B)1.00 units per gallon.
C)1.02 units per gallon.
D)1.06 units per gallon.
E)1.12 units per gallon.

Free

Multiple Choice

Q 34Q 34

Erwin Co. provided the following information for a selected production factor: The actual partial operational productivity ratio of the production factor is (round to two significant digits):
A)0.92 units per gallon.
B)1.00 units per gallon.
C)1.01 units per gallon.
D)1.02 units per gallon.
E)1.11 units per gallon.

Free

Multiple Choice

Q 35Q 35

The partial operational productivity ratio of DTV-12 in 2012 is:
A)0.63 per unit.
B)0.73 per unit.
C)1.92 per unit.
D)3.00 per unit.
E)3.33 per unit.

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Multiple Choice

Q 36Q 36

The partial operational productivity ratio of DTV-12 in 2013 is:
A)0.63 per unit.
B)0.73 per unit.
C)1.92 per unit.
D)3.00 per unit.
E)3.33 per unit.

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Multiple Choice

Q 37Q 37

The partial direct labor operational productivity ratio for 2012 is:
A)262 per unit.
B)169 per unit.
C)428 per unit.
D)300 per unit.
E)333 per unit.

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Multiple Choice

Q 38Q 38

The partial direct labor operational productivity ratio for 2013 is:
A)262 per unit.
B)169 per unit.
C)428 per unit.
D)300 per unit.
E)333 per unit.

Free

Multiple Choice

Q 39Q 39

The partial financial productivity ratio of DTV-12 in 2012 is:
A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

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Multiple Choice

Q 40Q 40

The partial financial productivity ratio of DTV-12 in 2013 is:
A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Free

Multiple Choice

Q 41Q 41

The partial direct labor financial productivity ratio for 2012 is:
A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Free

Multiple Choice

Q 42Q 42

The partial direct labor financial productivity ratio for 2013 is:
A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Free

Multiple Choice

Q 43Q 43

In 2013, the partial operational productivity of Material A is:
A)0.30.
B)0.45.
C)2.22.
D)3.33.
E)5.00.

Free

Multiple Choice

Q 44Q 44

In 2013, the partial operational productivity of Material H is:
A)0.20.
B)0.55.
C)1.82.
D)3.33.
E)5.00.

Free

Multiple Choice

Q 45Q 45

In 2013, the partial direct labor operational productivity is:
A)0.20.
B)0.25.
C)0.40.
D)4.00.
E)5.00.

Free

Multiple Choice

Q 46Q 46

In 2013, the partial financial productivity of Material A is:
A).030.
B).045.
C)2.22.
D)3.33.
E)5.00.

Free

Multiple Choice

Q 47Q 47

In 2013, the partial financial productivity of Material H is:
A)0.20.
B)0.55.
C)1.82.
D)3.33.
E)5.00.

Free

Multiple Choice

Q 48Q 48

In 2013, the partial financial productivity of direct labor is:
A)0.20.
B)0.25.
C)0.40.
D)4.00.
E)5.00.

Free

Multiple Choice

Free

Multiple Choice

Q 50Q 50

The partial operational productivity of Material A in 2012 is:
A)0.28.
B)0.33.
C)3.00.
D)3.33.
E)3.60.

Free

Multiple Choice

Q 51Q 51

The partial operational productivity of Material H in 2012 is:
A)0.20.
B)0.50.
C)2.00.
D)5.00.
E)6.00.

Free

Multiple Choice

Q 52Q 52

The partial direct labor operational productivity in 2012 is:
A)0.22.
B)0.25.
C)4.00.
D)4.50.
E)5.00.

Free

Multiple Choice

Q 53Q 53

In 2012, the partial financial productivity of Material A is:
A)0.28.
B)0.33.
C)3.00.
D)3.33.
E)3.60.

Free

Multiple Choice

Q 54Q 54

In 2012, the partial financial productivity of Material H is:
A)0.20.
B)0.50.
C)2.00.
D)5.00.
E)6.00.

Free

Multiple Choice

Q 55Q 55

In 2012, the partial financial productivity of direct labor is:
A)0.22.
B)0.25.
C)4.00.
D)4.50.
E)5.00.

Free

Multiple Choice

Free

Multiple Choice

Q 57Q 57

What is the sales mix variance for Spiders?
A)$1,125 favorable.
B)$1,500 favorable.
C)$1,650 unfavorable.
D)$4,800 favorable.
E)$4,800 unfavorable.

Free

Multiple Choice

Q 58Q 58

What is the sales quantity variance for Spiders?
A)$0
B)$1,500 favorable.
C)$9,843 favorable.
D)$11,250 favorable.
E)$15,468 favorablE.6900 + 3100 = 10,000

Free

Multiple Choice

Q 59Q 59

What is the sales volume variance for Spiders?
A)$0.
B)$1,125 favorable.
C)$1,500 favorable.
D)$1,650 unfavorable.
E)$12,375 unfavorablE.= (6,900 - 7,500) x $2.75 = $1,650 unfavorable

Free

Multiple Choice

Q 60Q 60

The contribution margin sales volume variance for Product X is:
A)$26,000 unfavorable.
B)$26,000 favorable.
C)$30,000 unfavorable.
D)$40,000 unfavorable.
E)$65,000 favorablE.Budgeted units: $260,000/$130 = 2,000

Free

Multiple Choice

Q 61Q 61

The selling price variance for Product X is:
A)$7,500 favorable
B)$26,000 unfavorable.
C)$30,000 unfavorable.
D)$40,000 favorable.
E)$40,000 unfavorablE.Actual price: $202,500/1,500 = $135

Free

Multiple Choice

Q 62Q 62

The sales quantity variance for Product X is:
A)$4,000 favorable.
B)$25,000 favorable.
C)$26,000 favorable.
D)$45,000 favorable.
E)$52,000 unfavorablE.Total units: budget = 2,000 + 6,000 = 8,000; actual units = 1,500 + 8,500 = 10,000

Free

Multiple Choice

Q 63Q 63

The contribution margin sales volume variance for Product Y is:
A)$7,500 favorable
B)$26,000 favorable.
C)$42,500 unfavorable.
D)$52,000 unfavorable.
E)$75,000 favorablE.Budgeted units: $360,000/$60 = 6,000

Free

Multiple Choice

Q 64Q 64

The selling price variance for Product Y is:
A)$7,500 favorable.
B)$25,000 unfavorable.
C)$42,500 unfavorable.
D)$52,000 favorable.
E)$75,000 unfavorable.

Free

Multiple Choice

Q 65Q 65

The sales quantity variance for Product Y is:
A)$4,000 favorable.
B)$25,000 favorable.
C)$26,000 favorable.
D)$45,000 favorable.
E)$52,000 unfavorablE.Total units: budget = 2,000 + 6,000 = 8,000; actual units = 1,500 + 8,500 = 10,000

Free

Multiple Choice

Q 66Q 66

The contribution margin sales volume variance for Product X is:
A)$6,600 unfavorable.
B)$8,300 favorable.
C)$12,200 favorable.
D)$12,200 unfavorable.
E)$14,800 favorablE.Budgeted units: $286,000/$110 = 2,600

Free

Multiple Choice

Q 67Q 67

The selling price variance for Product X is:
A)$0.
B)$30,000 unfavorable.
C)$30,000 favorable.
D)$15,000 favorable.
E)$75,000 unfavorablE.Actual price: $360,000/3,000 = $120

Free

Multiple Choice

Q 68Q 68

The sales mix variance for Product X is:
A)$22,200 favorable.
B)$43,600 unfavorable.
C)$43,600 favorable.
D)$7,400 unfavorable.
E)$23,200 unfavorablE.Total units: budget = 13,000; actual units = 12,000

Free

Multiple Choice

Q 69Q 69

The sales quantity variance for Product X is:
A)$45,350 favorable.
B)$7,400 unfavorable.
C)$6,500 favorable.
D)$23,200 favorable.
E)$43,500 favorablE.Total units: budget = 13,000; actual units = 12,000

Free

Multiple Choice

Q 70Q 70

The contribution margin sales volume variance for Product Y is:
A)$20,500 favorable.
B)$16,000 unfavorable.
C)$30,600 favorable.
D)$40,600 unfavorable.
E)$91,000 unfavorablE.Budgeted units: $520,000/$50 = 10,400

Free

Multiple Choice

Q 71Q 71

The selling price variance for Product Y is:
A)$90,000 favorable.
B)$43,200 unfavorable.
C)$90,000 unfavorable.
D)$35,000 favorable.
E)$50,000 unfavorablE.Actual price: $540,000/9,000 = $60

Free

Multiple Choice

Q 72Q 72

The sales mix variance for Product Y is:
A)$14,400 favorable.
B)$16,250 favorable.
C)$17,400 unfavorable.
D)$18,750 favorable.
E)$33,250 unfavorablE.Total units: budget = 13,000; actual units = 12,000

Free

Multiple Choice

Q 73Q 73

The sales quantity variance for Product Y is:
A)$6,465 favorable.
B)$6,750 favorable.
C)$33,250 favorable.
D)$23,200 unfavorable.
E)$78,000 favorablE.Total units: budget = 13,000; actual units = 12,000

Free

Multiple Choice

Q 74Q 74

The weighted-average budgeted contribution margin per unit is:
A)$19.95.
B)$35.50.
C)$30.60.
D)$40.00.
E)$77.50.

Free

Multiple Choice

Q 75Q 75

The firm's total sales quantity variance for the period is:
A)$16,000 favorable.
B)$34,800 favorable.
C)$24,660 favorable.
D)$30,600 favorable.
E)$66,375 favorablE.$7,400 + $23,200 = $30,600 unfavorable

Free

Multiple Choice

Q 76Q 76

The firm's market share variance for the period is:
A)$5,670 unfavorable.
B)$30,600 unfavorable.
C)$23,200 favorable.
D)$61,200 favorable.
E)$91,000 favorablE.Market share: budget = 13,00/130,000 = 10%; actual: 12,000/100,000 = 12%

Free

Multiple Choice

Q 77Q 77

The firm's market size variance for the period is:
A)$16,000 favorable.
B)$26,000 favorable.
C)$61,200 favorable.
D)$30,600 unfavorable.
E)$91,800 unfavorablE.Budgeted market share = 13,000/130,000 = 10%

Free

Multiple Choice

Q 78Q 78

The effect of the sales volume variance on November's contribution margin is:
A)$15,000 unfavorable.
B)$18,000 unfavorable.
C)$20,000 unfavorable.
D)$30,000 unfavorable.
E)$65,000 unfavorablE.Price = $300,000/6,000 = $50; Variable cost per unit = $180,000/6,000 = $30

Free

Multiple Choice

Q 79Q 79

The selling price variance for November is:
A)$15,000 unfavorable.
B)$18,000 unfavorable.
C)$20,000 unfavorable.
D)$30,000 unfavorable.
E)$65,000 unfavorablE.Price = $300,000/6,000 = $50; $235,000/5,000 = $47

Free

Multiple Choice

Q 80Q 80

What additional information would be needed for Folsom to calculate the dollar impact of changes in market share on November's operating income?
A)Folsom's budgeted market share and the budgeted total market size.
B)Folsom's budgeted market share, the budgeted total market size, and average market selling price.
C)Folsom's budgeted market share and the actual total market size.
D)Folsom's actual market share and the actual total market size.
E)There is no information that would make such a calculation possible.

Free

Multiple Choice

Q 81Q 81

The net effect of AR-10's sales volume variance on profit is:
A)$720 favorable.
B)$817 favorable.
C)$1,060 favorable.
D)$1,160 favorable.
E)$1,440 favorablE.Price = 6,000/2,000 = $3; unit variable cost = $2,400/2,000 = $1.2

Free

Multiple Choice

Q 82Q 82

The net effect of ZR-7's selling price variance on profit is:
A)$240 favorable.
B)$400 unfavorable.
C)$420 unfavorable.
D)$560 favorable.
E)$800 unfavorablE.Price = $12,000/6,000 = $2; Actual price = $11,760/5,600 = $2.1 = ($2.10 - $2) x 5,600 = $560 favorable

Free

Multiple Choice

Q 83Q 83

If products AR-10 and ZR-7 are substitutes for each other, a sales mix and sales volume variation for the combined products can be calculated. If this combination is calculated, the net effect on profit of the change in the unit sales mix is: (Round intermediate calculations to five significant digits, and your final answer to the nearest whole dollar amount.)
A)$480 favorable.
B)$700 favorable.
C)$560 favorable.
D)$940 favorable.
E)$1,960 favorablE.For AR-10

Free

Multiple Choice

Q 84Q 84

The sales quantity variance that would complement the variance calculated in the previous question is:
A)$480 favorable.
B)$507 favorable.
C)$560 favorable.
D)$960 favorable.
E)$1,040 favorablE.For AR-10

Free

Multiple Choice

Q 85Q 85

What is the company's market share variance?
A)$1,050 favorable.
B)$1,181 favorable.
C)$1,200 favorable.
D)$1,350 favorable.
E)$2,400 favorablE.(.34-.32) x 10,000 x $6 = $1,200 favorable

Free

Multiple Choice

Q 86Q 86

What is the company's market size variance?
A)$1,200 unfavorable.
B)$2,100 unfavorable.
C)$2,231 unfavorable.
D)$2,400 unfavorable.
E)$2,550 unfavorablE.(10,000 - 11,250) x .32 x $6 = $2,400 unfavorable

Free

Multiple Choice

Q 87Q 87

The weighted-average budgeted contribution margin per unit is:
A)$8.90.
B)$8.95.
C)$10.18.
D)$11.36.
E)$11.94.

Free

Multiple Choice

Q 88Q 88

The market share variance is:
A)$113,600 unfavorable.
B)$138,560 unfavorable.
C)$259,200 unfavorable.
D)$277,184 unfavorable.
E)$338,800 unfavorablE.(.05-.06) x 2,440,000 x $11.36 = $277,184 unfavorable

Free

Multiple Choice

Q 89Q 89

The market size variance is:
A)$218,450 favorable.
B)$33,750 favorable.
C)$221,520 favorable.
D)$385,104 favorable.
E)$426,000 favorablE.(2,440,000 - 1,875,000) x .06 x $11.36 = $385,104 favorable

Free

Multiple Choice

Q 90Q 90

Total sales quantity variance is:
A)$36,400 favorable.
B)$84,500 favorable.
C)$95,190 favorable.
D)$97,280 favorable.
E)$107,920 favorablE.Market share variance + Market Size Variance = Total Quantity variance - $277,184 + $385,104 = $107,920 favorable

Free

Multiple Choice

Q 91Q 91

If fixed costs are budgeted for $500,000 and are actually $500,000, what is the difference between budgeted and actual operating income?
A)$3,200 favorable.
B)$5,800 favorable.
C)$122,500 unfavorable.
D)$65,550 favorable.
E)$23,455 favorablE.Budgeted total contribution: (22,500 x $4.8) + (90,000 x $13) = $1,278,000

Free

Multiple Choice

Q 92Q 92

The total contribution margin sales volume variance of the period is:
A)$5,800 favorable.
B)$36,400 unfavorable.
C)$48,000 unfavorable.
D)$63,950 unfavorable.
E)$107,920 favorablE.[(42,000 - 22,500) x $4.8] + [(80,000 - 90,000) x $13] = $36,400 unfavorable

Free

Multiple Choice

Q 93Q 93

The total selling price variance of the period is:
A)$0.
B)$38,000 unfavorable.
C)$67,500 unfavorable.
D)$112,500 unfavorable.
E)$122,000 unfavorablE.[($14 - $13) x 42,000] + [($29 - $30) x 80,000] = $38,000 unfavorable

Free

Multiple Choice

Q 94Q 94

The total sales mix variance for both products is:
A)$140,000 favorable.
B)$160,000 favorable.
C)$416,000 unfavorable.
D)$156,000 unfavorable.
E)$260,000 favorablE.For Product X

Free

Multiple Choice

Q 95Q 95

The total sales quantity variance for both products is:
A)$160,000 favorable.
B)$144,000 unfavorable.
C)$150,000 favorable.
D)$110,000 unfavorable.
E)$254,000 unfavorablE.For Product X.

Free

Multiple Choice

Q 96Q 96

The weighted-average budgeted contribution margin per unit is:
A)$5.15.
B)$6.35.
C)$6.70.
D)$6.80.
E)$7.00.

Free

Multiple Choice

Q 97Q 97

The contribution margin sales volume variance is:
A)$200,000 favorable.
B)$260,000 unfavorable.
C)$340,000 unfavorable.
D)$410,000 unfavorable.
E)$580,000 unfavorablE.[(20,000 - 90,000) x $8] + [(140,000 - 110,000) x $5] = $410,000 unfavorable

Free

Multiple Choice

Q 98Q 98

What is ET's contribution margin sales volume variance?
A)$15,360 favorable.
B)$15,360 unfavorable.
C)$24,960 favorable.
D)$32,000 unfavorable.
E)$16,640 unfavorablE.Budgeted CM = $60 - 36 = $24

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Multiple Choice

Q 99Q 99

What is MT's contribution margin sales volume variance?
A)$800 unfavorable.
B)$1,040 unfavorable.
C)$22,960 favorable.
D)$23,760 favorable.
E)$24,000 favorablE.Budgeted CM = $40 - 20 = $20

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Multiple Choice

Q 100Q 100

What is the total contribution margin sales volume variance?
A)$7,600 favorable.
B)$8,000 unfavorable.
C)$15,600 favorable.
D)$16,560 unfavorable.
E)$24,160 favorablE.$24,960 - $800 = $24,160 favorable

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Multiple Choice

Q 101Q 101

What is MT's sales mix variance?
A)$800 unfavorable.
B)$9,600 unfavorable.
C)$10,800 unfavorable.
D)$12,480 unfavorable.
E)$14,040 unfavorablE.Total units: budget = 4,000 + 4,000 = 8,000; actual units = 3,960 + 5,040 = 9,000

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Multiple Choice

Q 102Q 102

What is ET's sales mix variance?
A)$7,680 favorable.
B)$8,640 favorable.
C)$11,520 favorable.
D)$12,960 favorable.
E)$24,960 favorablE.Total units: budget = 4,000 + 4,000 = 8,000; actual units = 3,960 + 5,040 = 9,000

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Multiple Choice

Q 103Q 103

What is the firm's total sales mix variance?
A)$960 unfavorable.
B)$2,160 favorable.
C)$2,520 unfavorable.
D)$6,880 favorable.
E)$10,920 favorablE.$10,800 F - $12,960 U = $2,160 favorable

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Multiple Choice

Q 104Q 104

What is MT's sales quantity variance?
A)$800 unfavorable.
B)$8,800 favorable.
C)$10,000 favorable.
D)$11,440 favorable.
E)$13,600 favorablE.Total units: budget = 4,000 + 4,000 = 8,000; actual units = 3,960 + 5,040 = 9,000

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Multiple Choice

Q 105Q 105

What is ET's sales quantity variance?
A)$8,000 favorable.
B)$8,960 favorable.
C)$12,000 favorable.
D)$13,440 favorable.
E)$24,960 favorablE.Total units: budget = 4,000 + 4,000 = 8,000; actual units = 3,960 + 5,040 = 9,000

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Multiple Choice

Q 106Q 106

What is the firm's total sales quantity variance?
A)$7,200 favorable.
B)$17,760 favorable.
C)$22,000 favorable.
D)$24,840 favorable.
E)$38,560 favorablE.$10,000 + $12,000 = $22,000 favorable

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Multiple Choice

Q 107Q 107

What is the firm's market share variance?
A)$30,600 favorable.
B)$31,500 favorable.
C)$32,640 favorable.
D)$33,000 favorable.
E)$35,200 favorablE.Market share: budget: 8,000/80,000 = .10; actual market share = 9,000/75,000 = .12

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Multiple Choice

Q 108Q 108

What is the firm's market size variance?
A)$10,200 unfavorable.
B)$11,000 unfavorable.
C)$12,240 unfavorable.
D)$13,200 unfavorable.
E)$22,000 unfavorablE.(75,000 - 80,000) x .10 x $22 = $11,000 unfavorable

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Multiple Choice

Q 109Q 109

What is the firm's market share variance?
A)$10,800 favorable.
B)$11,200 favorable.
C)$12,4000 favorable.
D)$12,600 favorable.
E)$13,200 favorablE.(.15 - .12) x 12,000 x ($60 - 30) = $10,800 favorable

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Multiple Choice

Q 110Q 110

What is the firm's market size variance?
A)$2,440 favorable.
B)$3,600 favorable.
C)$5,550 favorable.
D)$6,000 favorable.
E)$6,300 favorablE.(12,000 - 11,000) x .12 x ($60 - $30) = $3,600 favorable

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Multiple Choice

Q 111Q 111

What is AB's contribution margin sales volume variance?
A)$0
B)$1,500 unfavorable.
C)$4,000 favorable.
D)$7,500 unfavorable.
E)$10,000 unfavorable.

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Multiple Choice

Q 112Q 112

What is CD's contribution margin sales volume variance?
A)$500 favorable.
B)$2,500favorable.
C)$5,500favorable.
D)$12,500 favorable.
E)$25,000 favorable.

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Multiple Choice

Q 113Q 113

What is the total contribution margin sales volume variance?
A)$0.
B)$1,000 favorable.
C)$1,000 unfavorable.
D)$4,000 favorable.
E)$5,000 unfavorablE.$1,500 unfavorable + $5,500 favorable = $4,000 favorable

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Multiple Choice

Q 114Q 114

What is the firm's total sales mix variance?
A)$0.
B)$500 favorable.
C)$725 unfavorable.
D)$3.000 favorable.
E)$3,000 unfavorable.

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Multiple Choice

Q 115Q 115

What is the firm's total sales quantity variance?
A)$0.
B)$3,500 unfavorable.
C)$4,000 favorable.
D)$37,500 favorable.
E)$50,000 favorable.

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Multiple Choice

Q 116Q 116

What is the firm's market share variance?
A)$0.
B)$560 favorable.
C)$1,200 favorable.
D)$1,225 favorable.
E)$10,500 favorable.

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Multiple Choice

Q 117Q 117

What is the firm's market size variance?
A)$6,000 unfavorable.
B)$750 unfavorable.
C)$4,000 unfavorable.
D)$17,500 unfavorable.
E)$0.

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Multiple Choice

Q 118Q 118

Which of the following is not a key determinant of productivity for most organizations?
A)Control of waste.
B)Product and manufacturing process innovation.
C)Control of overhead costs.
D)Fluctuations in demand.

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Multiple Choice

Q 119Q 119

Which of the following is a total productivity measure?
A)Units of output per dollar value of input.
B)Units of output per units of materials.
C)Units of output per labor hour.
D)Units of output per machine hour.

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Multiple Choice

Q 120Q 120

A firm manufactures 5,000 umbrellas per year. The umbrellas cost $25,000 to manufacture. The firm has an annual overhead cost of $5,000. What is the total productivity of manufacturing umbrellas?
A)0.20 umbrellas/dollar
B)0.20 dollars/umbrella
C)5 umbrellas/dollar
D)0.17 dollars/umbrella

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Multiple Choice

Q 121Q 121

Which of the following is not an element of a product's sales quantity variance?
A)Budgeted sales mix ratio for the product.
B)Budgeted contribution margin per unit of the product.
C)Difference in total units of all products between the actual units sold and the units budgeted to be sold.
D)Actual sales mix ratio.

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Multiple Choice

Q 122Q 122

Which of the following is not a part of the sales mix variance equation?
A)Actual sales mix of the product.
B)Budgeted sales mix of the product.
C)Actual contribution margin per unit of the product.
D)Total units sold.

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Multiple Choice

Q 123Q 123

The market share variance measures the effect of the difference in market shares on the firm's total contribution margin and:
A)Net income.
B)Operating income.
C)Investment income.
D)Total sales.

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Multiple Choice

Q 124Q 124

Julie Hilger started New Treads to combine fashion and sustainability. The original production of sandals made from recycled plastic has expanded to a complete line of casual footwear. Current sales total over $2 million. Julie hired the firm's first controller early this year, and has asked him to detail suggestions for ways to increase profits. Adrian Warring, the new controller, has compiled a list of recommended changes that focus on quality improvements. New Treads customers expect high quality at a low price, a "value" product. So the company must simultaneously watch costs and quality. After receiving his list of suggestions, Julie calls Adrian to her office and says, "I don't see how improving quality can increase productivity. In fact, it seems to me that efforts to improve quality will slow down production and decrease productivity."
Required:
Using specific examples, help Adrian explain to Julie why efforts to improve quality can also boost productivity. How does productivity play a role in the firm's strategy and competitive environment?

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Essay

Q 125Q 125

Dr. Howard Abelson is the director of the Wellness House, a residential center for recovering alcoholics. A typical patient spends 3-4 weeks in an intensive program of rehabilitation. The Wellness House has a staff of 45, including 12 certified therapists, to serve an average patient load of 15. Howard Abelson is attempting to develop some productivity measures for the center, but is not aware of the limitations of productivity measurement in not-for-profit organizations. You have been called in as a consultant to help develop appropriate productivity measures.
Required:
(a) Identify any major differences/limitations you face in developing performance measures for the Wellness House.
(b) Recommend two or three overall measures of productivity that are appropriate for the Wellness House as a not-for-profit organization.

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Essay

Q 126Q 126

Paquindo Co. has two products: X and Y. The firm had the following budget and operating results for the period just ended. The budgeted total industry sales for both products was 324,800 units and the actual industry sales was 350,000.
Required:
(A) Calculate the contribution margin sales volume variance for Product X.
(B) Calculate the contribution margin sales volume variance for Product Y.
(C) Calculate the sales mix variance for Product X.
(D) Calculate the sales quantity variance for Product X.
(E) Calculate the sales mix variance for Product Y.
(F) Calculate the sales quantity variance for Product Y.
(G) Calculate the market share variance for both products.
(H) Calculate the market size variance for both products.

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Essay

Q 127Q 127

Zeller Company had two products named Q and R. The firm had the following budget for the period just ended:
Required:
(A) Calculate the contribution margin sales volume variance for Product Q.
(B) Calculate the contribution margin sales volume variance for Product R.
(C) Calculate the sales mix variance for Product Q.
(D) Calculate the sales quantity variance for Product Q.
(E) Calculate the sales mix variance for Product R.
(F) Calculate the sales quantity variance for Product R.

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Essay

Q 128Q 128

The following information is for the Wetherby Company.
1. Compute the partial operational productivity measures for 2012 and 2013.
2. Compute the partial financial productivity ratios for 2012 and 2013.
3. Separate the changes of the partial financial productivity ratios from 2012 to 2013 into productivity change, input price change, and output change.

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Essay

Q 129Q 129

The Tempest Company has the following information for the current year.
The industry budget is 2 million units and the actual result for the industry is 2.5 million units.
Required:
1. Compute the contribution margin sales mix variance for product X.
2. Compute the contribution margin sales mix variance for product Y.
3. Compute the contribution margin sales volume variance for product X.
4. Compute the contribution margin sales volume variance for product Y.
5. Compute the contribution margin sales quantity variance for product X.
6. Compute the contribution margin sales quantity variance for product Y.
7. Compute the market share variance for Tempest.
8. Computer the market size variance for Tempest.

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Essay

Q 130Q 130

Taylor, Inc. has the following information for the two most recent years of operations.
Required:
Determine the following:
1. Selling price variance in sales dollars.
2. Sales volume variance in contribution.
3. Materials usage variance.
4. Materials price variance.
5. Labor usage variance.
6. Labor rate variance.

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Essay

Q 131Q 131

In early 2006, the new CEO of Hewlett-Packard (H-P), Mark Hurd, became aware of a number of customer complaints about the accessibility of sales support at the company. The complaints referred to a confusing management structure and lack of contact with sales support personnel from H-P. There were 17,000 people working in H-P sales, and customers, particularly the large corporate customers, were frustrated dealing with the complexity of the H-P sales system.
Required:
What would you propose to Mark Hurd, the CEO at H-P, regarding an overhaul of the sales support systems at H-P?

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Essay

Q 132Q 132

Triple Delight is a food stand located on a busy corner in the local business district. On average it sells three cheeseburgers and one fishwich for every four hamburgers sold. The following data were culled from its operation for 2013:
The estimated total volume for the food stands in the region was 2,500,000 units. Consistent good weather pushed the total volume for the year to 4,000,000.
Required:
Determine the following:
1. Budgeted weighted-average contribution margin.
2. Budgeted and actual market shares.
3. Budget and actual total units sold.
4. Sales quantity variances for fishwich.
5. Budgeted contribution margin of each product.
6. Actual sales mix of each product.
7. Budget and actual units sold for each product.

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Essay

Q 133Q 133

Lau & Lau, Ltd., of Hong Kong manufacture two products for the same market. Its budget and operating results for the year just completed follow:
At the time of budget preparation, the budgeting department and sales department agreed that the industry volume for the year would likely be 1,500,000 units. Actual industry volume turned out to be 2,000,000 units.
Required:
(you may round fractions to three decimal places)
1. What is the average budgeted contribution margin per unit?
2. What is the sales volume contribution margin variance for each product?
3. What is the sales mix contribution margin variance for each product?
4. What is the sales quantity contribution margin variance for each product?
5. What is the market size contribution margin variance?
6. What is the market share contribution margin variance?
7. What is the total flexible budget contribution margin variance?
8. What is the total variable cost price variance if the total contribution margin price variance is $50,000 favorable?
9. What is the total variable cost efficiency variance if the total contribution margin price variance is $50,000 favorable?

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Essay

Q 134Q 134

Showtime is a group of aspiring musicians and actors who perform in theaters and dinner clubs. It has a matinee and evening show. These operating data pertain to the month of July:
Required:
1. Calculate for each type of show and the total:
a. Sales mix variances.
b. Sales quantity variances.
c. Sales volume variances.
2. What strategic implications can you draw from the variances?

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Essay