Question 1

Bonaventura Boots had the following variances at year-end:
  What is the effect of closing these variances on the Cost of Goods Sold account at year-end?

Accepted Answer

A)  Increase by $35 
B)  Decrease by $35 
C)  Increase by $715 
D)  Decrease by $715 
A)  Increase by $35 
B)  Decrease by $35 
C)  Increase by $715 
D)  Decrease by $715 A

Question 2

Which of the following account balances will reflect the actual cost of production at year-end in a standard costing system?

Accepted Answer

A)  Work In Process Inventory 
B)  Raw Materials Inventory 
C)  Finished Goods Inventory 
D)  Cost of Goods Sold 
A)  Work In Process Inventory 
B)  Raw Materials Inventory 
C)  Finished Goods Inventory 
D)  Cost of Goods Sold D

Question 3

Corner Cupcakes has the following budgeted amounts for the current month: budgeted sales
In units of 3,500 at a budgeted unit selling price of $5. Actual amounts for the month were as follows: 4,000 units at a unit selling price of $4.80. What is the sales activity variance for Corner Cupcakes for the current month?

Accepted Answer

A)  $2,400 unfavorable 
B)  $2,400 favorable 
C)  $2,500 unfavorable 
D)  $2,500 favorable 
A)  $2,400 unfavorable 
B)  $2,400 favorable 
C)  $2,500 unfavorable 
D)  $2,500 favorable D

Question 4

A sales mix variance for a given product is computed as

Accepted Answer

A)  (actual sales mix of the product - budgeted sales mix of the product) x actual volume of all products sold x budgeted unit contribution margin of the product. 
B)  (actual sales mix of the product - budgeted sales mix of the product) x budgeted volume of all products sold x budgeted unit contribution margin of the product. 
C)  (actual sales mix of the product - budgeted sales mix of the product) x actual volume of all products sold x actual unit contribution margin of the product. 
D)  (actual sales mix of the product - budgeted sales mix of the product) x budgeted volume of all products sold x actual unit contribution margin of the product. 
A)  (actual sales mix of the product - budgeted sales mix of the product) x actual volume of all products sold x budgeted unit contribution margin of the product. 
B)  (actual sales mix of the product - budgeted sales mix of the product) x budgeted volume of all products sold x budgeted unit contribution margin of the product. 
C)  (actual sales mix of the product - budgeted sales mix of the product) x actual volume of all products sold x actual unit contribution margin of the product. 
D)  (actual sales mix of the product - budgeted sales mix of the product) x budgeted volume of all products sold x actual unit contribution margin of the product.

Question 5

Maya Industries has the following actual and master budget information for its two product 
lines:
   Compute the Sales Mix Variances for the Gadgets, Gizmos, and in Total.

Accepted Answer

Sales Mix Variance_Gadgets = (Actual Sales Mix_Gadgets -

Question 6

The correct equation for the variable-MOH price variance is

Accepted Answer

A)  actual variable-MOH incurred - (SQ x SP). 
B)  budgeted variable-MOH - (SQ x AP). 
C)  budgeted variable-MOH - (AQ x SP). 
D)  actual variable-MOH incurred - (AQ x SP). 
A)  actual variable-MOH incurred - (SQ x SP). 
B)  budgeted variable-MOH - (SQ x AP). 
C)  budgeted variable-MOH - (AQ x SP). 
D)  actual variable-MOH incurred - (AQ x SP).

Question 7

What is the key benefit of standard costing?

Accepted Answer

The key benefit of standard costing is t

Question 8

In budgeting, when realities change, old assumptions and their benchmarks

Accepted Answer

A)  are never adjusted, since the budget was created based on these assumptions. 
B)  must be adjusted to reflect better information, so that actual performance is more on target. 
C)  can be changed to reflect better information, but the changes are not required. 
D)  may or may not be changed, based on the discretion of management. 
A)  are never adjusted, since the budget was created based on these assumptions. 
B)  must be adjusted to reflect better information, so that actual performance is more on target. 
C)  can be changed to reflect better information, but the changes are not required. 
D)  may or may not be changed, based on the discretion of management.

Question 9

Santini Shoe Company had the following data for its Women's shoes and Men's shoes for the last quarter:
  What is the Total Sales Mix Variance for Santini Shoe Company for last quarter?

Accepted Answer

A)  $ 884 favorable 
B)  $ 884 unfavorable 
C)  $2,208 favorable 
D)  $ 2,208 unfavorable 
A)  $ 884 favorable 
B)  $ 884 unfavorable 
C)  $2,208 favorable 
D)  $ 2,208 unfavorable

Question 10

Variance accounts are closed or written off to

Accepted Answer

A)  Retained Earnings. 
B)  Cost of Goods Sold. 
C)  Finished Goods (FG) Inventory. 
D)  Work In Process Inventory. 
A)  Retained Earnings. 
B)  Cost of Goods Sold. 
C)  Finished Goods (FG) Inventory. 
D)  Work In Process Inventory.

Question 11

When a unit of product is completed, the correct accounting entry to record this is to

Accepted Answer

A)  debit Work In Process (WIP) Inventory and credit Finished Goods (FG) Inventory 
B)  debit Finished Goods (FG) Inventory and credit Work In Process (WIP) Inventory 
C)  debit Work In Process (WIP) Inventory and credit Raw Materials Inventory 
D)  debit Finished Goods (FG) Inventory and credit Raw Materials Inventory 
A)  debit Work In Process (WIP) Inventory and credit Finished Goods (FG) Inventory 
B)  debit Finished Goods (FG) Inventory and credit Work In Process (WIP) Inventory 
C)  debit Work In Process (WIP) Inventory and credit Raw Materials Inventory 
D)  debit Finished Goods (FG) Inventory and credit Raw Materials Inventory

Question 12

Fern's Florist has a Flexible Budget Variance of $15, favorable and a Sales Activity Variance of
$25, unfavorable. What is Fern's Florist's Master Budget Variance?

Accepted Answer

A)  $10 favorable 
B)  $10 unfavorable 
C)  $40 unfavorable 
D)  Cannot be determined; not enough information given. 
A)  $10 favorable 
B)  $10 unfavorable 
C)  $40 unfavorable 
D)  Cannot be determined; not enough information given.

Question 13

Identify at least two causes of variable-MOH variances.

Accepted Answer

Some of the causes of Variable-MOH varia

Question 14

In order to achieve its goals, a company should

Accepted Answer

A)  set its goals at the highest level in order to motivate employees to reach the goals 
B)  enact its budgeted plan and set regular evaluations of actual versus budgeted numbers to track its progress towards these goals. 
C)  evaluate only the accuracy of the budget assumptions used to create the budget. 
D)  constantly change assumptions used in creating the budget when actual events occur contrary to the budget assumptions. 
A)  set its goals at the highest level in order to motivate employees to reach the goals 
B)  enact its budgeted plan and set regular evaluations of actual versus budgeted numbers to track its progress towards these goals. 
C)  evaluate only the accuracy of the budget assumptions used to create the budget. 
D)  constantly change assumptions used in creating the budget when actual events occur contrary to the budget assumptions.

Question 15

Companies establish standards and control them with different levels of rigor. Identify the 
two levels of standards and differentiate them.

Accepted Answer

The two levels of standards are ideal st

Question 16

Once set, ____________ numbers become the benchmark for comparison purposes.

Accepted Answer

A)  actual 
B)  budgeted 
C)  industry 
D)  prior year 
A)  actual 
B)  budgeted 
C)  industry 
D)  prior year

Question 17

Given that standard costs are like budgets or benchmarks at the unit-level, it is imperative to

Accepted Answer

A)  follow up with variance analysis to plan for unit costs only. 
B)  control the unit costs only. 
C)  evaluate performance once the units are produced and troubleshoot why variances occurred only. 
D)  follow up with variance analysis to plan for unit costs, control them, and evaluate performance once the units are produced, and then, troubleshoot why variances occurred. 
A)  follow up with variance analysis to plan for unit costs only. 
B)  control the unit costs only. 
C)  evaluate performance once the units are produced and troubleshoot why variances occurred only. 
D)  follow up with variance analysis to plan for unit costs, control them, and evaluate performance once the units are produced, and then, troubleshoot why variances occurred.

Question 18

An organization uses a combination of budgeting and variance analysis as effective tools for

Accepted Answer

A)  planning and control. 
B)  performance evaluation and troubleshooting. 
C)  motivation and benchmarking. 
D)  motivation and benchmarking, planning and control, and performance evaluation and control. 
A)  planning and control. 
B)  performance evaluation and troubleshooting. 
C)  motivation and benchmarking. 
D)  motivation and benchmarking, planning and control, and performance evaluation and control.

Question 19

Which of the following spotlights which factors contribute to differences between budgeted and actual outcomes?

Accepted Answer

A)  Breakeven analysis 
B)  Cost behavior analysis 
C)  Variance analysis 
D)  Benchmarking analysis 
A)  Breakeven analysis 
B)  Cost behavior analysis 
C)  Variance analysis 
D)  Benchmarking analysis

Question 20

Dairy Delites had the following projected and incurred the following production and cost data shown below:
  What is the Fixed-MOH Volume Variance?

Accepted Answer

A)  $136 favorable 
B)  $136 unfavorable 
C)  $216 favorable 
D)  $216 unfavorable 
A)  $136 favorable 
B)  $136 unfavorable 
C)  $216 favorable 
D)  $216 unfavorable

Bonaventura Boots had the following variances at year-end: What is the effect of closing these variances on the Cost of Goods Sold account at year-end?

Which of the following account balances will reflect the actual cost of production at year-end in a standard costing system?

A sales mix variance for a given product is computed as

Maya Industries has the following actual and master budget information for its two product lines: Compute the Sales Mix Variances for the Gadgets, Gizmos, and in Total.

The correct equation for the variable-MOH price variance is

What is the key benefit of standard costing?

In budgeting, when realities change, old assumptions and their benchmarks

Santini Shoe Company had the following data for its Women's shoes and Men's shoes for the last quarter: What is the Total Sales Mix Variance for Santini Shoe Company for last quarter?

Variance accounts are closed or written off to

When a unit of product is completed, the correct accounting entry to record this is to

Fern's Florist has a Flexible Budget Variance of $15, favorable and a Sales Activity Variance of $25, unfavorable. What is Fern's Florist's Master Budget Variance?

Identify at least two causes of variable-MOH variances.

In order to achieve its goals, a company should

Companies establish standards and control them with different levels of rigor. Identify the two levels of standards and differentiate them.

Once set, ____________ numbers become the benchmark for comparison purposes.

Given that standard costs are like budgets or benchmarks at the unit-level, it is imperative to

An organization uses a combination of budgeting and variance analysis as effective tools for

Which of the following spotlights which factors contribute to differences between budgeted and actual outcomes?

Dairy Delites had the following projected and incurred the following production and cost data shown below: What is the Fixed-MOH Volume Variance?

Cost Accounting Has Purpose

Refresher on Cost Terms Road Map

Cost Behavior and Estimation

Cost-Volume-Profit Analysis

Cost Accounting Has Purpose

Mastering the Master Budget

Capital Budgeting Choices and Decisions

Job Costing

Activity- Based Costing

Process Costing

Absorption Versus Variable Costing

Data Analytics

Support Department Costing

Joint Costs and Decision-Making

The Art and Science of Pricing to Optimize Revenue

Management Control Systems and Transfer Pricing

Business Strategy, Performance Measurement, and the Balanced Scorecard

Filters

Exam 10: Variance Analysis and Standard Costing

Bonaventura Boots had the following variances at year-end: What is the effect of closing these variances on the Cost of Goods Sold account at year-end?

Which of the following account balances will reflect the actual cost of production at year-end in a standard costing system?

A sales mix variance for a given product is computed as

Maya Industries has the following actual and master budget information for its two product lines: Compute the Sales Mix Variances for the Gadgets, Gizmos, and in Total.

The correct equation for the variable-MOH price variance is

What is the key benefit of standard costing?

In budgeting, when realities change, old assumptions and their benchmarks

Santini Shoe Company had the following data for its Women's shoes and Men's shoes for the last quarter: What is the Total Sales Mix Variance for Santini Shoe Company for last quarter?

Variance accounts are closed or written off to

When a unit of product is completed, the correct accounting entry to record this is to

Fern's Florist has a Flexible Budget Variance of $15, favorable and a Sales Activity Variance of $25, unfavorable. What is Fern's Florist's Master Budget Variance?

Identify at least two causes of variable-MOH variances.

In order to achieve its goals, a company should

Companies establish standards and control them with different levels of rigor. Identify the two levels of standards and differentiate them.

Once set, ____________ numbers become the benchmark for comparison purposes.

Given that standard costs are like budgets or benchmarks at the unit-level, it is imperative to

An organization uses a combination of budgeting and variance analysis as effective tools for

Which of the following spotlights which factors contribute to differences between budgeted and actual outcomes?

Dairy Delites had the following projected and incurred the following production and cost data shown below: What is the Fixed-MOH Volume Variance?

Cost Accounting Has Purpose

Refresher on Cost Terms Road Map

Cost Behavior and Estimation

Cost-Volume-Profit Analysis

Cost Accounting Has Purpose

Mastering the Master Budget

Capital Budgeting Choices and Decisions

Job Costing

Activity- Based Costing

Process Costing

Absorption Versus Variable Costing

Data Analytics

Support Department Costing

Joint Costs and Decision-Making

The Art and Science of Pricing to Optimize Revenue

Management Control Systems and Transfer Pricing

Business Strategy, Performance Measurement, and the Balanced Scorecard

Filters