Reference no: EM132808921

Keith, the intern, was given some information from his supervisor. The supervisor wants him to figure out how well her department is doing. Keith suggests using Return On Investment as a gauge. The figures include: Sales of $250 000, Net Operating Income of $30 000, Average Operating Assets of $200 000, and the company's required return is 12%.

Problem 1: The master budget process usually begins with which of the following?

Option 1: Production budget.

Option 2: Sales budget.

Option 3: Operating budget.

Option 4: Cash budget.

Problem 2: Which one of the following variances is MOST controllable by a production supervisor?

Option 1: Materials price variance.

Option 2: Materials usage variance.

Option 3: Fixed overhead volume variance.

Option 4: Labour rate variance.