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BAM 110 BAM110 Exam 4 with Answers (CCU)


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The first budget customarily prepared as part of an entity’s master budget is the ______.

In large businesses, decentralization is often advantageous because ______.

Defense contractors would be MORE likely to use which of the following cost concepts in pricing their product?

Cash payment for monthly rent is an example of _____.

Managers plan _____ in a budget in order to provide a cushion for unexpected events or improve the appearance of operations.

How do the responsibilities of a manager in an investment center compare to the responsibilities of managers in a cost or profit center?

The revenue that is forgone from an alternative use of an asset is called a(n) ______.

Which method of analysis would be best in reference to the purchase of a new machine to replace an old machine?

The _____ is estimated as the difference between the expected selling price and the desired profit.

A responsibility center in which the department manager has responsibility for and authority over costs and revenues is called a(n) ______.

Which of the following is TRUE of a capital expenditures budget?

Responsibility accounting for a profit center focuses on reporting ______.

Standards that can be achieved only under perfect operating conditions, such as no idle time, no machine breakdowns, and no materials spoilage, are called ______.

Periods experiencing an increase in price levels are known as periods of ______.

The performance of a profit center manager is evaluated by comparing the profit center’s operating income:

When managers of separate divisions or units are delegated the responsibility for managing their operations, the operational responsibility is said to be _____.

A disadvantage of the average rate of return method of capital investment analysis is that ______.

The amount of increase or decrease in cost that is expected from a particular course of action as compared to an alternative is termed ______.

A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed

Which component of the balanced scorecard evaluates the economic performance of the responsibility centers?

Assume in analyzing alternative proposals that Proposal F has a useful life of six years and Proposal J has a useful life of nine years. What is one widely used method that makes the proposals comparable?

Which of the following budgets summarizes plans for acquiring fixed assets?

Which of the following can be used to place capital investment proposals involving different amounts of investment on a comparable basis for purposes of net present value analysis?

The markup determined by management should be sufficient to earn ______.

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