loader  Loading... Please wait...

Question(s) / Instruction(s):

Standard costs may be used by

a.            universities.

b.            governmental agencies.

c.             charitable organizations.

d.            all of these.


 

2.            If standard costs are incorporated into the accounting system,

a.            the accounting system will produce information that is less relevant than the historical cost accounting system.

b.            approval of the stockholders is required.

c.             it may simplify the costing of inventories and reduce clerical costs.

d.            it can eliminate the need for the budgeting process.


 

3.            The most rigorous of all standards is the

a.            conceivable standard.

b.            realistic standard.

c.             ideal standard.

d.            normal standard.


 

4.            A managerial accountant

does not participate in the standard setting process.

provides knowledge of cost behaviors in the standard setting process.

provides input of historical costs to the standard setting process.

  1. 2
  2. 2 and 3
  3. 3
  4. 1


 

5.            The direct labor quantity standard is sometimes called the direct labor

a.            volume standard.

b.            efficiency standard.

c.             effectiveness standard.

d.            quality standard.


 

6.            The labor time requirements for standards may be determined by the

a.            payroll department manager.

b.            sales manager.

c.             product manager.

d.            industrial engineers.


               

7.            Which of the following statements is true?

a.            Variances are the differences between total actual costs and total standard costs.

b.            When actual costs exceed standard costs, the variance is favorable.

c.             An unfavorable variance results when actual costs are decreasing but standards are not changed.

d.            All of the above are true.


 

8.            The standard quantity allowed for the units produced was 6,500 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $375 favorable. Each unit uses 1 pound of materials. How many units were actually produced?

a.            6,650

b.            6,350

c.             6,500

d.            15,875

 

 

9.            An unfavorable labor quantity variance may be caused by

a.            worker fatigue or carelessness.

b.            misallocation of workers.

c.             higher pay rates mandated by union contracts.

d.            paying workers higher wages than expected.


               

10.          Which one of the following describes the total overhead variance?

a.            The difference between the overhead applied and the flexible budget amount.

b.            The difference between what was actually incurred and the total production budget.

c.             The difference between what was actually incurred and the flexible budget amount.

d.            The difference between what was actually incurred and overhead applied.


 

11.          Raylight Products planned to use 1 yard of plastic per unit budgeted at $81 a yard. However, the plastic actually cost $80 per yard. The company actually made 2,600 units, although it had planned to make only 2,200 units. Total yards used for production were 2,640. How much is the total materials variance?

a.            $600 U

b.            $3,240 U

c.             $2,640 F

d.            $32,400 U

 

 

12.          Variances from standards are

a.            expressed in total dollars.

b.            expressed on a per-unit basis.

c.             expressed on a percentage basis.

d.            all of these.


               

13.          Sonic Corporation’s variance report for the purchasing department reports 500 units of material A purchased and 1,200 units of material B purchased. It also reports standard prices of $2 for Material A and $3 for Material B. Actual prices reported are $2.10 for Material A and $2.80 for Material B. Sonic should report a total price variance of

a.            $20 U.

b.            $190 U.

c.             $20 F.

d.            $190 F.

 

 

14.          The costing of inventories at standard cost for external financial statement reporting purposes is

a.            preferable to reporting at actual costs.

b.            not permitted.

c.             in accordance with generally accepted accounting principles if significant differences exist between actual and standard costs.

d.            in accordance with generally accepted accounting principles if significant differences do not exist between actual and standard costs.


 

15.          The balanced scorecard approach

a.            uses only financial measures to evaluate performance.

b.            normally sets the financial objectives first, and then sets the objectives in the other perspectives to accomplish the financial objectives.

c.             uses rather vague, open statements when setting objectives in order to allow managers and employees flexibility.

d.            evaluates performance using about 10 different perspectives in order to effectively incorporate all areas of the organization.


 

 

 

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$2.50

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

You Recently Viewed...



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494