The Performance Evaluation of Cost Centres Is Typically Based on Which

question 89

Multiple Choice

The performance evaluation of cost centres is typically based on which of the following?

• A) Sales volume variance
• B) ROI
• C) Flexible budget variance
• D) Static budget variance

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Definitions:

Average Total Cost

the cost per unit is calculated by dividing the entire production cost by the quantity of units produced.

Total Revenue

The total amount of money generated from the sale of goods or services by a company before any expenses are subtracted.

Interest-Rate Cost-Of-Funds

The rate of interest a financial institution pays to borrow funds or the cost of obtaining funds through borrowing or issuing debt.

Marginal Benefit

The additional benefit received from consuming or producing one more unit of a good or service.