Need Answers and why 12 is an example of a monetary incenti

Need Answers and why:

12. _____ is an example of a monetary incentive used to control a manager\'s tendency to shirk and waste resources.

a. A recognition program

b. Job enrichment

c. A promotion

13. Which of the following is true of participative budgeting?

a. It imposes budgets on subordinate managers.

b. It fosters a sense of responsibility among managers.

d. It discourages creativity.

14. In March, Burlywood had the following results:

Production:

Units in process, March 1, 80% complete

36,000 units

Units completed and transferred out

120,000 units

Units in process, March 31, 40% complete

44,500 units

Costs:

Work in process, March 1

$11,600

Costs added during March

$32,000

Determine the total cost to be assigned using the first-in, first-out costing method.

a. $55,200

c. $48,080

d. $52,320

9. In cost-volume-profit analysis, a multiple-product problem is converted into a single-product problem by:

a. determining the sales prices.

b. defining the features of the products.

c. determining the unit variable cost.

d. defining a particular sales mix in units.

13. Which of the following is true of sensitivity analysis?

a. It allows managers to vary costs, prices, and sales mix to show various possible break-even points.

b. It can be performed only when managers have accurate data about financial forecasts.

c. It provides accurate data about sales, contribution margin, and operating income without ambiguity.

d. It can be easily performed on hand with limited knowledge of revenue and cost systems.

1.Decisions that involve choosing between different alternatives that attempt to provide a competitive advantage over a particular time frame are called:

b. strategic decisions.

c. relevant decisions.

d. short-term decisions.

4. Which of the following is an example of a direct fixed cost?

a. Cost of a mold for a product

c. Cost of printing annual reports

d. Salary of a receptionist

10. Which of the following is true of target pricing?

a. It aims to increase cost on redesigning the product during the production stage.

b. It requires the use of fewer materials, labor, and processes during production, delivery and customer service.

c. It recognizes that only 50% of a product\'s cost becomes committed by the time it reaches the design stage.

Budgets can be improved as performance measures by:

a. holding managers accountable for noncontrollable costs.

b. using fixed budgeting.

c. setting standards that are either too high or too low.

d. using participative budgeting.

_____ are an example of nonmonetary incentives used to enhance a budgetary control system.

a. Bonuses paid to managers

b. Salary increases to workers

c. Recognition programs

d. Promotions offered to supervisors

Units in process, March 1, 80% complete	36,000 units
Units completed and transferred out	120,000 units
Units in process, March 31, 40% complete	44,500 units
Costs:
Work in process, March 1	$11,600
Costs added during March	$32,000

Solution

12. Solution: A promotion

Explanation: The recognition program and job enrichment are non-monetary incentives

13) Solution: It fosters a sense of responsibility among managers

Explanation: Participative budgeting fosters a sense of responsibility and promotes creativity as it allows subordinate considerable say in how budgets are created

14. Solution: 48,080

Explanation:

Units

Cost

In process on March-1 80%

36,000

11,600

9,280

complete

120,000

32,000

21,000

In process on March-31 40%

44,500

17,800

48080.00

?

15. Solution: defining a particular sales mix in units.

Explanation: Sales Mix and Cost-Volume-Profit Analysis defining a specific sales mix permits the conversion of a multiple-product concern into a single-product CVP format

Answering the first four parts

	Units	Cost
In process on March-1 80%	36,000	11,600	9,280
complete	120,000	32,000	21,000
In process on March-31 40%	44,500		17,800
			48080.00