Costing - Study Mode
[#61] Variance used by managers to check whether company has performed well and properly implemented strategies is considered as
Correct Answer
(C) performance evaluation
Explanation
Solution: Variance used by managers to check whether company has performed well and properly implemented strategies is considered as performance evaluation. Performance Evaluation is defined as a formal and productive procedure to measure an employee's work and results based on their job responsibilities.
[#62] Manager who is responsible only for revenues of company can be categorized under the
Correct Answer
(D) revenue center
Explanation
Solution: Manager who is responsible only for revenues of company can be categorized under the revenue center. A revenue center is a distinct operating unit of a business that is responsible for generating sales.
[#63] System which measures budget, action and plan of each responsibility center is known as
Correct Answer
(D) responsibility accounting
Explanation
Solution: System which measures budget, action and plan of each responsibility center is known as responsibility accounting. Responsibility Accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs.
[#64] Significant feature of Kaizen Budgeting is
Correct Answer
(A) employee suggestion
Explanation
Solution: Significant feature of Kaizen Budgeting is employee suggestion. Kaizen budgeting takes the concept of continual improvement and applies it to budgets and budget forecasting.
[#65] Budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers can be classified as
Correct Answer
(D) kaizen budgeting
Explanation
Solution: Budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers can be classified as kaizen budgeting. Kaizen budgeting takes the concept of continual improvement and applies it to budgets and budget forecasting.