Exam 17: Additional Topics in Variance Analysis

The Trey Company experienced a $100,000 shortfall in sales revenues for the year.Top management is quite disturbed about this and has decided to use variance analysis in assigning the responsibility for the decline.Which of the following variances would be most within the control of the marketing department?

The variable cost flexible budget variance for November is

If a company sells two products,it is possible for both products to have an unfavorable sales quantity variance.

The sales mix variance would be

Is the sales mix variance for the deluxe model favorable or unfavorable?

Professional accounting firms could not compute a labor mix and labor yield variance for their auditors because labor in accounting is not substitutable.

The variable production cost variances are computed using the units produced instead of the units sold.

The budget for a given cost during a given period was $80,000.The actual cost for the period was $72,000.Considering these facts,the plant manager has done a better-than-expected job in controlling the cost if (CPA adapted)

The market share variance is more controllable by the marketing department than the industry volume variance.

The effect of the sales quantity variance on the contribution margin for November is

What additional information is needed for Folsom to calculate the dollar impact of a change in market share on operating income for November? (CMA adapted)

Is the total direct material yield variance favorable or unfavorable?

Is the total sales mix variance favorable or unfavorable?

Which of the following statements is (are)true? (A)The market share variance is more controllable by the marketing department than the industry volume variance. (B)The industry volume variance is the portion of the sales activity variance due to a change in the company's proportion of sales in the markets in which they operate.

What is the total sales price variance?

If KMG recognizes all variances at the earliest possible moment,what is the total material price variance?

Is the sales mix variance for the basic model favorable or unfavorable?

Some variances are the result of accounting errors and omissions,including timing differences.

The production mix variance measures the impact of substituting one material for another material during the production process.

Which of the following statements is (are)true? (A)If variances are prorated at the end of the accounting period,an unfavorable direct materials price variance will,when prorated,increase the value of the Finished Goods Inventory. (B)Insignificant variances are not generally prorated at the end of the accounting period and are closed to the Cost of Goods Sold.