Exam 11: Reporting and Analyzing Stockholders Equity

Unfavorable materials price and quantity variances are generally the responsibility of the Price Quantity a. Purchasing department Purchasing Department b. Purchasing department Production Department c. Production department Production Department d. Production Department Purchasing Department

Which of the following statements about standard costs is false?

If the labor quantity variance is unfavorable and the cause is inefficient use of direct labor, the responsibility rests with the

The difference between the actual labor rate multiplied by the actual labor hours worked and the standard labor rate multiplied by the standard labor hours is the

In using variance reports, top management normally looks carefully at every variance.

The formula for the labor price variance is

The use of standard costs in inventory costing is prohibited in financial statements.

An unfavorable materials quantity variance would occur if

The perspectives included in the balanced scorecard approach include all of the following except the

Setting standard costs is relatively simple because it is done entirely by accountants.

The balanced scorecard approach

Clark Company manufactures a product with a standard direct labor cost of two hours at $18.00 per hour.During July, 2,000 units were produced using 4,200 hours at $18.30 per hour. -The labor quantity variance was

What is a standard cost?

The total overhead variance is the difference between the

A variance is the difference between actual costs and standard costs.

The direct labor quantity standard is sometimes called the direct labor

The formula for the materials price variance is

Alex Co.prepared its income statement for management using a standard cost accounting system.Which of the following appears at the "standard" amount?

Which of the following statements is false?

An advantage of standard costs is that they simplify costing of inventories and reduce clerical costs.