Drop Down Answers Req 2a Both revenue and cost data only cost data only revenue data 2b a cost center an investment center a profit center a revenue center

req3 Req4a Favorable as well as unfavorable variances only favorable variances only unfavorable variances

4b may be due to bookeeping or budget errors result in greater profit to the company indicate that the budget was prepared correctly

req5a are are not could be 5b flexible budget revenue center performance report volume variance not the flexible budget 5c somthing other than volume volume variances

req6a not place as much weight on the variable because it does not exceed 10% place equal weight on both variances place more weight on the variable expenses variances 6b cost of sale variances the common fixed expenses the revenue variances the volume variances 6c this is a direct cost of the subunit this is not a direcct cost of the subunit the overall variance is insignificant

req7a customer financial internal business learning and growth 7b customer financial internal business learning and growth 7c forcast future performances measure the results of past decisions req8 8a balanced scorecard perspective / key performance indicator 8b lag lead 8c forcast future performances measure the result of past decisions

8d projecting future performances than past financial data providing real time information reporting on pst financial data than projecting future performances

One subunit of Racer Sports Company had the following financial results last month: EEB (Click the icon to view the financial results.) Read the requirements Requirement 1. Complete the performance evaluation report for this subunit (round to three decimal places). (Enter a variance for each account and select whether the variance is unfavorable (U) or favorable (F). Enter the results as positive numbers. Enter the variance percents as a percentage to three decimal places.".xxx%*) Racer Sports Company-Team Sports Subunit Monthly Performance Report For the Month Variance Product Actual Budgeted Variance Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Segment margin Less: Common fixed expenses Operating income Requirement 2. Based on the data presented, what type of responsibility center is this subunit? This performance report includes Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $13,000 and 709,800 650,000 406,250 290,550243,750 12,500 277,500231,250 31,250 233,250 200,000 419,250 13,050 44,250 therefore this subunit must be exceeding 16% (both criteria must be met)? (If a box is not used in the table, leave the box empty: do not select a label.) Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate to evaluate Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances Favorable variances Management needs 7 to determine the root cause of the variance. due to sales volume differences between budget and actual. Differences in sales volume are captured by the flexible budget variance is due to Requirement 6. Do you think t will place equal weight on each of the $13,000 variances? Explain. Management will Additionally, they may not place much weight on because Requirement 7. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or lag ndicator? Explain. The performance report addresses the indicators. They typicalhy Requirement 8. Give one key performance indicator for the other three balanced scorecard perspectives. Indicate which perspective is being addressed by the perspective of the balanced scorecard. performance measures tend to be indicators you list. Are they lead or lag indicators? Explain. Complete the following table to identify one key performance indicator for the three other balanced scorecard perspectives. Balanced scorecard perspective Key performance indicator Are they lead or lag indicators? Explain. Each of these performance measures isaindicator which tend to | The performance indicators listed above are often better at Requirement 3. Which itens should be inves Common fixed expenses Contribution margin Direct ficed expenss l Sales favorable vari number of new products de piair hours spent training employees res s sales revenue growth y number in the input fields and then continue to Requirement 8. Cive one key performanoe in Complete the following table to identify one ke Balanced scorecard perspective Customer perspective Financial perspective l Internal business perspective Investment perspective Leaning and growth perspective Choose from any list or enter any number in