Question 1

The most rigorous of all standards is the

Accepted Answer

A) normal standard. 
B) realistic standard. 
C) ideal standard. 
D) conceivable standard. 
A) normal standard. 
B) realistic standard. 
C) ideal standard. 
D) conceivable standard.

Question 2

In designing a balanced scorecard approach for its operations, a company should

Accepted Answer

A) seek to determine as much detail as possible from its activities. 
B) ensure the report is readily available as a discussion tool between management and shareholders. 
C) attempt to link performance measures on a cause and effect basis. 
D) eliminate any financial results as these will be dealt with in. 
A) seek to determine as much detail as possible from its activities. 
B) ensure the report is readily available as a discussion tool between management and shareholders. 
C) attempt to link performance measures on a cause and effect basis. 
D) eliminate any financial results as these will be dealt with in.

Question 3

Which of the following would be an objective for the internal process perspective?

Accepted Answer

A) profit per employee 
B) customer retention 
C) training hours 
D) planning accuracy 
A) profit per employee 
B) customer retention 
C) training hours 
D) planning accuracy

Question 4

EKPN Co.produces wooden boxes.The company's standards per box require 6 boards, each costing $10 per board, and half of an hour of direct labour.The standard labour rate is $15 per hour.In August, EKPN Co.Purchased 12,000 boards for a total cost of $123,000.It used 11,500 boards to manufacture 1,900 boxes.Total labour hours were 1,000 hours, and total labour costs were $16,250. What was the labour quantity variance for August?

Accepted Answer

A) $750 F 
B) $750 U 
C) $13,500 F 
D) $13,500 U 
A) $750 F 
B) $750 U 
C) $13,500 F 
D) $13,500 U

Question 5

In using variance reports, management looks for

Accepted Answer

A) total assets invested. 
B) significant variances. 
C) competitors' costs in comparison to the company's costs. 
D) more efficient ways of valuing inventories. 
A) total assets invested. 
B) significant variances. 
C) competitors' costs in comparison to the company's costs. 
D) more efficient ways of valuing inventories.

Question 6

EKPN Co.produces wooden boxes.The company's standards per box require 6 boards, each costing $10 per board, and half of an hour of direct labour.The standard labour rate is $15 per hour.In August, EKPN Co.Purchased 12,000 boards for a total cost of $123,000.It used 11,500 boards to manufacture 1,900 boxes.Total labour hours were 1,000 hours, and total labour costs were $16,250. What was the labour price variance?

Accepted Answer

A) $1,250 U 
B) $1,250 F 
C) $4,250 F 
D) $4,250 U 
A) $1,250 U 
B) $1,250 F 
C) $4,250 F 
D) $4,250 U

Question 7

Standard cost is the industry average cost for a product or service.

Accepted Answer

A) True 
 B)False

Question 8

The formula for the materials quantity variance is

Accepted Answer

A) (SQ × AP)- (SQ × SP). 
B) (AQ × AP)- (AQ × SP). 
C) (AQ × SP)- (SQ × SP). 
D) (AQ × AP)- (SQ × SP). 
A) (SQ × AP)- (SQ × SP). 
B) (AQ × AP)- (AQ × SP). 
C) (AQ × SP)- (SQ × SP). 
D) (AQ × AP)- (SQ × SP).

Question 9

Each of the following may cause an unfavourable variable overhead budget variance except

Accepted Answer

A) higher than expected use of indirect materials. 
B) greater than expected use of indirect labour. 
C) increases in indirect manufacturing costs. 
D) inefficient use of direct materials. 
A) higher than expected use of indirect materials. 
B) greater than expected use of indirect labour. 
C) increases in indirect manufacturing costs. 
D) inefficient use of direct materials.

Question 10

Use the following information for questions 
Bridgeware Company has a materials price standard of $2.50 per kilogram.Four thousand kilograms of materials were purchased at $2.40 a kilogram.The actual quantity of materials used was 3,500 kilograms, although the standard quantity allowed for the output was 3,400 kilograms.
-Bridgeware Company's materials price variance is

Accepted Answer

A) $400 U. 
B) $400 F. 
C) $350 U. 
D) $300 F. 
A) $400 U. 
B) $400 F. 
C) $350 U. 
D) $300 F.

Question 11

A total materials variance is analyzed in terms of

Accepted Answer

A) price and quantity variances. 
B) buy and sell variances. 
C) quantity and quality variances. 
D) tight and loose variances. 
A) price and quantity variances. 
B) buy and sell variances. 
C) quantity and quality variances. 
D) tight and loose variances.

Question 12

If actual costs are greater than standard costs, there is a(n)

Accepted Answer

A) normal variance. 
B) unfavourable variance. 
C) favourable variance. 
D) error in the accounting system. 
A) normal variance. 
B) unfavourable variance. 
C) favourable variance. 
D) error in the accounting system.

Question 13

An unfavourable labour quantity variance indicates that the actual number of direct labour hours worked was greater than the number of direct labour hours that should have been worked for the output attained.

Accepted Answer

A) True 
 B)False

The most rigorous of all standards is the

In designing a balanced scorecard approach for its operations, a company should

Which of the following would be an objective for the internal process perspective?

In using variance reports, management looks for

Standard cost is the industry average cost for a product or service.

The formula for the materials quantity variance is

Each of the following may cause an unfavourable variable overhead budget variance except

A total materials variance is analyzed in terms of

If actual costs are greater than standard costs, there is a(n)

An unfavourable labour quantity variance indicates that the actual number of direct labour hours worked was greater than the number of direct labour hours that should have been worked for the output attained.

Managerial Accounting

Managerial Cost Concepts and Cost Behaviour Analysis

Job Order Costing

Process Costing

Activity-Based-Costing

Cost-Volume-Profit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Planning for Capital Investments

Filters

Exam 12: Standard Costs and Balanced Scorecard

The most rigorous of all standards is the

In designing a balanced scorecard approach for its operations, a company should

Which of the following would be an objective for the internal process perspective?

In using variance reports, management looks for

Standard cost is the industry average cost for a product or service.

The formula for the materials quantity variance is

Each of the following may cause an unfavourable variable overhead budget variance except

A total materials variance is analyzed in terms of

If actual costs are greater than standard costs, there is a(n)

An unfavourable labour quantity variance indicates that the actual number of direct labour hours worked was greater than the number of direct labour hours that should have been worked for the output attained.

Managerial Accounting

Managerial Cost Concepts and Cost Behaviour Analysis

Job Order Costing

Process Costing

Activity-Based-Costing

Cost-Volume-Profit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Planning for Capital Investments

Filters