Question

One subunit of Field Sports Company had the following financial results last month: (Click the icon to view the financial results.) Read the requirements Requirement 1. Complete the performance evaluation report for the subunit. (Enter a variance for each account as a positive number and select whether the variance is favorable or unfavorable. Enter the variance percent as a percentage rounded to two decimal places, X.XX%) Actual Flexible Flexible Budget % Variance Subunit x Results Budget Variance (For U) (For U) Net Sales Revenue $ 480.000 $ 453,000 % Variable Expenses 263,000 253,000 % Contribution Margin 217,000 $ 200,000 35,000 26,000 Traceable Fixed Expenses % $ 182 000 $ 174,000 Divisional Segment Margin Requirement 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? S This performance report includes therefore, this subunit must be Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $8,000 and exceeding 10% (both criteria must be met)? Management should investigate the following: (If a box is not used in the table, leave the box empty.) Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate Favorable expense variances Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances due to sales volume differences between budget and actual. Differences in sales volume are captured by the The flexible budget variance is due to Requirement 6. Will management place equal weight on each of the variances exceeding $8,000? Explain. Management will because Requirement 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain The performance report addresses the perspective of the balanced Scorecard performance measures tend to be indicators They typically Requirement 8. List one key performance indicator for the three other balanced Scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators you list. Complete the following table to identify one key performance indicator for the three other balanced Scorecard perspectives Balanced Scorecard Key performance perspective indicator

Answer 1

Editing . A1 REQUIREMENT 1 A B C H 1 2 E F G REQUIREMENT 1 PERFORMANCE EVALUATION REPORT Flexible Budget Variance (D-E) Nature 3 Particulars Actuals Variance % = F) 4 5 Net Sales Revenue 4,80,000 4,53,000 6 Variable Expenses 2,63,000 2,53,000 7 Contribution Margin 2,17,000 2,00,000 8 Traceable Fixed Expenses 35,000 26,000 9 Divisional Segment Margin 1,82,000 1,74,000 10 11 Variance = Actuals - Flexible Budget 27,000 Favourable 10,000 Unfavourable 17,000 Favourable 9,000 Unfavourable 8,000 Favourable 1 Sheet 1307 Sheet 1308 Sheet 1309 Sheet 1310 Sheet 1311 Sheet 1312 Ready 200%

atlanter Merge Center - 892 Clipboard Font Insert Delete Format Alignment Conditional Formriatas Formatting Table Styles Styles Number اور امرا Sony Find Fiber Select- A18 X A B C D E 10 F G 11 12 13 Variance = Actuals - Flexible Budget Variance in % = Variance Change / Actual Results * 100 Increase in Variable and Fixed Expenses is unfavourable for the Company. Increase in Sales Revenue, Contribution and Segmental Margin is Favourable for the Company. 14 15 16 17 18 19 4 Sheet 1307 Sheet 1308 | Sheet 1309 Sheet 1310 Sheet 1311 Sheet 1312 + Ready

Alignment Number Clear - Styles Cells Filter - Select - Editing A1 REQUIREMENT 2 A B С D E F G 1 REQUIREMENT 2 2 3 The Performance report includes both revenue and cost data therfore this submit must be a profit centre. 4 5 6 REQUIREMENT 3 7 8 Traceable Fixed Expenses to be investigated fulfiling the criteria mentioned. 9 10 Sheet 1307 Sheet 1308 Sheet 1309 Sheet 1310 Sheet 1311 Sheet 1312 1 Ready 2309

me what you want to do Share Calibri X Cut Copy Format Painter 11 JAN Wrap Text General Σιλίμα, Paste B I U Merge Center % Insert Delete Format Clipboard Font Conditional Formats Cell Formatting Table Styles Styles Clear Alignment Number Sort Find Filter Select Editing Cells A18 X 1. Sales Volume Variance not the Flexible Budget Variance. 2. actual prices and costs varying from standards. A B C F G 11 D E REQUIREMENT 4 12 13 Management should investigate favorable as well as unfavorable variances . Favorable 14 Expense Variances indicate that the budget was prepared correctly. 15 16 REQUIREMENT 5 17 18 1. Sales Volume Variance not the Flexible Budget Variance. 2. actual prices and costs varying from standards. 19 20 Sheet 1307 Sheet 1308 Sheet 1309 Sheet 1310 Sheet 1311 Sheet 1312 + 2301