44. What are standard cost variances?

A. Differences between standard and actual costs

B. Amounts that exceed budgeted amounts

C. Useful industry-developed amounts that can be used by companies to evaluate their performance

D. Differences between budgeted and standard amounts

45. Which of the following variances is most likely the responsibility of the purchasing manager?

A. Material quantity variance

B. Labor efficiency variance

C. Material price variance

D. Overhead volume variance

46. An advantage of decentralization is that subunit managers can respond more quickly to changing circumstances.(True or false)

47. Goal congruence refers to the match between

A. locations of manufacturing plants and customers.

B. goals based on profits and those based on return on investment.

C. number of units produced and number of units sold.

D. goals of the individual managers and those of the company as a whole.

48. What does ROI measure?

A. The amount of profit generated out of each sales dollar

B. The amount of sales generated out of each dollar of assets invested

C. The amount of profit generated out of each dollar of assets invested

D. The amount of revenue generated out of each sales dollar.

49. Financial leverage relates to a companys use of debt financing to acquire and use productive assets.(True or false)

50. What does financial leverage measure?

A. How quickly a company generates profit from its assets

B. How quickly a company is turning its net income into cash

C. The overall efficiency with which a company uses assets to generate revenues

D. How effectively the company uses debt financing to acquire economic resources