CMA（P1）備***2——Performance

　　6、 Brannen Videotronics uses a four-way allocation of overhead, machine hours to allocate overhead, and years of experience as the main determinant for wage increases. The standards are set and revised on an annual basis.
　　Due to a surge in competitive pressures, Brannen’s management decided to undertake downsizing. Brannen offered incentives that permitted a large number of senior employees to opt in the middle of the year for early retirement. As a result, Brannen had to bring in temporary replacements who were paid entry-level wages to see that work deadlines were met. Which one of the following is most likely to result from this situation?
　　A. Unfavorable efficiency variances and favorable price variances.
　　B. Unfavorable efficiency variances and unfavorable price variances.
　　C. Favorable efficiency variances and unfavorable price variances.
　　D. Favorable efficiency variances and favorable price variances.
　　7、Richter Company has an unfavorable materials efficiency (usage) variance for a particular month. Which one of the following is least likely to be the cause of this variance?
　　A. Inadequate training of the direct labor employees.
　　B. Poor performance of the shipping employees.
　　C. Poor design of the production process or product.
　　D. Poor quality of the raw materials.
　　8、Which one of the following allocation approaches will ensure that the production departments do not underestimate their planned usage of service at the start of the budget period as well as make the service departments cost efficient?
　　A. The use of actual rates and actual hours for both fixed and variable costs.
　　B. Budgeted rates and standard hours allowed for output attained for variable costs and budgeted rates and capacity available for fixed costs.
　　C. The use of rates and quantities based on long-term historical averages for both variable and fixed costs.
　　D. The use of a budgeted lump-sum amount based on estimates provided by the production departments for both variable and fixed costs.
　　9、 Which one of the following is an incorrect description of transfer pricing?
　　A. It measures the value of goods or services furnished by a profit center to other responsibility centers within a company.
　　B. If a market price exists, this price may be used as a transfer price.
　　C. It measures exchanges between a company and external customers.
　　D. If no market price exists, the transfer price may be based on cost.
　　10、 Which one of the following should be used for *uating the performance of the Repair and Maintenance Department that repairs production equipment in a firm devoted to making keyboards for computers?
　　A. The variance between the firm’s budgeted and actual net income.
　　B. The total factory overhead variances.
　　C. The fixed overhead volume variances.
　　D. The response time and degree of satisfaction among the production departments.
　　11、 Albert Hathaway recently joined Brannen University as the chief information officer of the University Computing Services Department. His assigned task is to help reduce the recurrent problem of cost overruns due to uncontrolled computer usage by the user community, while at the same time not curtailing the use of information technology for research and teaching. To ensure goal congruence, which one of the following algorithms should be used to allocate the cost of the University Computing Services Department to other departments within the university?
　　A. Actual rate times actual hours of computer usage.
　　B. Actual rate times budgeted hours of computer usage.
　　C. Budgeted rate times actual hours of computer usage.
　　D. Budgeted rate times budgeted hours of computer usage.
　　12、For several years, Northern Division of Marino Company has maintained a positive residual income. Northern is currently considering investing in a new project that will lower the division’s overall return on investment (ROI) but increase its residual income. What is the relationship between the expected rate of return on the new project, the firm’s cost of capital, and the division’s current ROI?
　　A. The expected rate of return on the new project is higher than the division’s current return on investment, but lower than the firm’s cost of capital.
　　B. The firm’s cost of capital is higher than the expected rate of return on the new project, but lower than the division’s current return on investment.
　　C. The division’s current return on investment is higher than the expected rate of return on the new project, but lower than the firm’s cost of capital.
　　D. The expected rate of return on the new project is higher than the firm’s cost of capital, but lower than the division’s current return on investment.