Drop Down Options:

Requirement : F or U

Requirement 2 (pt. 1): both revenue and data cost, only cost data, only revenue data,

Requirement 2 (pt. 2): a cost center, an investment center, a profit center, a revenue center

Requirement 3: Contribution margin, Net sales revenue, Traceable fixed expenses, Variable expenses

Requirement 4 (pt. 1): favorable as well as unfavorable variances, only favorable variances, only unfavorable variances

Requirement 4 (pt. 2): indicate that the budget was prepared correctly, may indicate costs are being cut that might impact future operations, result in greater profits to the company

Requirement 5 (pt. 1): are, are not

Requirement 5 (pt. 2): fixed budget, revenue center performance report, (sales volume variance, not the flexible budget variance)

Requirement 5 (pt. 3): actual prices and costs varying from standards, sales volume variances

Requirement 6 (pt. 1): not place as much weight on each of the variances which exceeds $8,000, place equal weight on all variances, place more weight on the variable expense variance

Requirement 7 (pt. 1): customer, financial, internal business, learning and growth

Requirement 7 (pt. 2): customer, financial, internal business, learning and growth

Requirement 7 (pt. 3): lag, lead

Requirement 7 (pt. 4): forecast future performance, measure the results of past decisions

Requirement 8 (pt. 1): Customer perspective, Financial perspective, Internal business perspective, Learning and growth perspective

Requirement 8 (pt. 2): customer satisfaction rating, hours spent training employees, number of new products developed, return on investment, sales revenue growth.

0 Data Table Flexible Budget Variance (F or U) % Variance (For U) Subunit x Net Sales Revenue Variable Expenses Contribution Margin Traceable Fixed Expenses Actual Results Flexible Budget 473,000 $ 451,000 263,000 255,000 210,000 40,000 196,000 30,000 170,000 $ 166,000 Divisional Segment Margin Requirement 1. Complete the performance evaluation report for the subunit. (Enter a variance for each account as a positive number and select whether the variance is favorable or unfavorable. Enter the variance percent as a percentage rounded to two decimal places, X.XX%.) Flexible Budget Variance (F or U) % Variance (F or U) Subunit x Net Sales Revenue Variable Expenses Contribution Margin Traceable Fixed Expenses Actual Flexible Results Budget $ 473,000 $ 451,000 263,000 255,000 $ 210,000 $ 196,000 40,000 30,000 $ 170,000 $ 166,000 Divisional Segment Margin Requirement 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? This performance report includes v; therefore, this subunit must be Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $8,000 and exceeding 10% (both criteria must be met)? Management should investigate the following: (If a box is not used in the table, leave the box empty.) Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate 7. Favorable expense variances Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances volume are captured by the due to sales volume differences between budget and actual. Differences in sales Y. The flexible budget variance is due to Requirement 6. Will management place equal weight on each of the variances exceeding $8,000? Explain. Management will y because Requirement 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain. The performance report addresses the performance measures tend to be perspective of the balanced scorecard. indicators. They typically Requirement 8. List one key performance indicator for the three other balanced scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators you list Complete the following table to identify one key performance indicator for the three other balanced Scorecard perspectives. Balanced scorecard perspective Key performance indicator