QUESTION 1

1. Which variance is sometimes known as the efficiency variance?

   	A.	Volume variance
   	B.	Quantity variance
   	C.	Price variance
   	D.	None of these are correct

2.5 points

QUESTION 2

1. In the illustrated example of variance analysis for an infusion center, the flexible variance analysis is divided into a flexible budget variance of $11,200 (unfavorable) and a sales volume variance of $12,000 (favorable). Which of these variances relates to the number of procedures performed?

   	A.	Flexible budget variance
   	B.	Static budget variance
   	C.	Sales volume variance
   	D.	None of these is correct.

2.5 points

QUESTION 3

1. Using the information provided in the preceding question, the infusion center variance analysis example represents:

   	A.	two-variance analysis.
   	B.	three-variance analysis.
   	C.	five-variance analysis.
   	D.	None of these are correct

2.5 points

QUESTION 4

1. When benchmarking measures against the best levels of performance, these best levels may be found:

   	A.	inside the organization
   	B.	outside the organization
   	C.	inside and outside the organizations
   	D.	None of these is correct

2.5 points

QUESTION 5

1. Jeremy, the controller for a hospice, must commence a benchmarking project. Jeremy decides he needs to look outside his organization in order to find the best levels of performance for measurement purposes. Is this approach acceptable for benchmarking purposes?

   	A.	Yes
   	B.	No
   	C.	Not applicable
   	D.	Depends

2.5 points

QUESTION 6

1. Dr. Gray, chairman of the executive committee for a large physician group, decides to create an ongoing benchmarking project. He chooses to measure his groups data against available AMA national data, and the first report is completed. Shortly thereafter, another physician becomes chairman and kills the project. Conceptually speaking, can the one and only first report be called a benchmarking process?

   	A.	Yes
   	B.	No
   	C.	Not applicable
   	D.	It depends