Question 1

Which variance explains whether actual sales meant a larger or smaller portion of the total market than the plan?

Accepted Answer

A)  Market size variance 
B)  Market share variance 
C)  Sales quantity variance 
D)  Sales mix variance 
A)  Market size variance 
B)  Market share variance 
C)  Sales quantity variance 
D)  Sales mix variance

Question 2

Which of the following standards would be best suited to a futuristic production facility comprised of robots and drones, but lacking people?

Accepted Answer

A)  Firm, yet attainable standards 
B)  Ideal standards 
C)  Realistic standards 
D)  Practical standards 
A)  Firm, yet attainable standards 
B)  Ideal standards 
C)  Realistic standards 
D)  Practical standards

Question 3

Match the following term with its appropriate definition by including the correct letter in the blank next to the term.
-Motivate

Accepted Answer

A) schedule for production, labor purchases and manufacturing overhead 
B) differences between actual and budgeted outcomes 
C) approved budgeted numbers 
D) logical, systematic identification of sources of problems to fix them and avoid recurrence 
E) assess work effort to achieve benchmarks
F)activities to prevent deviations from budget
G)inspire employees to unleash their potential 
A) schedule for production, labor purchases and manufacturing overhead 
B) differences between actual and budgeted outcomes 
C) approved budgeted numbers 
D) logical, systematic identification of sources of problems to fix them and avoid recurrence 
E) assess work effort to achieve benchmarks
F)activities to prevent deviations from budget
G)inspire employees to unleash their potential

Question 4

Cosmo Cookie Creations had the following variable cost data for the past month:
  What is Cosmo Cookie's Flexible Budget Variance and Sales Activity Variance?

Accepted Answer

A)  $600, unfavorable and $300, favorable 
B)  $600, unfavorable and $300, unfavorable 
C)  $600, favorable and $300, favorable 
D)  $600, favorable and $300, unfavorable 
A)  $600, unfavorable and $300, favorable 
B)  $600, unfavorable and $300, unfavorable 
C)  $600, favorable and $300, favorable 
D)  $600, favorable and $300, unfavorable

Question 5

The manager of Power Industries reviewed the financial information for the year just completed. Sales volume came in lower than expected at 5,000 units, while it budgeted for sales of 5,500 units. Power's variable cost per unit (comprised of DM, DL, and variable-MOH) was $20, the unit sales price expected was $45, and fixed-MOH costs totaled $110,000. Prepare a flexible budget to determine Power's budgeted operating profit.

Accepted Answer

The answer of The manager of Power Industries reviewed the...

Question 6

General ledger accounts for variances are classified as

Accepted Answer

A)  permanent accounts. 
B)  temporary accounts. 
C)  real accounts. 
D)  retained earnings. 
A)  permanent accounts. 
B)  temporary accounts. 
C)  real accounts. 
D)  retained earnings.

Question 7

The sales price variance is computed as the

Accepted Answer

A)  (Actual sales price per unit - Budgeted sales price per unit) x Actual volume sold. 
B)  (Actual volume - Budgeted volume) x Budgeted sales price. 
C)  (Actual sales price per unit - Budgeted sales price per unit) x Budgeted volume sold. 
D)  (Actual volume - Budgeted volume) x Actual sales price. 
A)  (Actual sales price per unit - Budgeted sales price per unit) x Actual volume sold. 
B)  (Actual volume - Budgeted volume) x Budgeted sales price. 
C)  (Actual sales price per unit - Budgeted sales price per unit) x Budgeted volume sold. 
D)  (Actual volume - Budgeted volume) x Actual sales price.

Question 8

Compute the indicated amount in each of the following independent scenarios:
a. Flameco, Inc. has a Master Budget Variance of $100, unfavorable and a Flexible Budget Variance of $150, favorable. What is the Sales Activity Variance for Flameco, Inc.?
b. Genero Company has a Master Budget Variance of $200, favorable and a Sales Activity Variance of $130, favorable. What is the Flexible Budget Variance for Genero Company?
c. Tenet Industries has a Flexible Budget Variance of $450, favorable and a Sales Activity Variance of $250, unfavorable. What is Master Budget Variance for Tenet Industries?

Accepted Answer

a. Sales Activity Variance = Master Budg

Question 9

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

Accepted Answer

Sales Quantity Variance_Gadgets = (Actual Volume

Question 10

Standards should be reviewed and updated

Accepted Answer

A)  throughout the year, every time conditions and assumptions change. 
B)  only if variances are significant and indicate a change is required. 
C)  at the end of each period, once variances are known. 
D) at the beginning of each year, in anticipation of what the variances will be for the year. 
A)  throughout the year, every time conditions and assumptions change. 
B)  only if variances are significant and indicate a change is required. 
C)  at the end of each period, once variances are known. 
D) at the beginning of each year, in anticipation of what the variances will be for the year.

Question 11

When should a flexible budget be used instead of the master budget?

Accepted Answer

A)  When actual sales volume equals the master budget sales volume 
B)  When actual sales volume approximates the master budget sales volume 
C)  When actual sales volume differs from the master budget sales volume 
D)  When the actual sales revenue differs from the master budget sales revenue 
A)  When actual sales volume equals the master budget sales volume 
B)  When actual sales volume approximates the master budget sales volume 
C)  When actual sales volume differs from the master budget sales volume 
D)  When the actual sales revenue differs from the master budget sales revenue

Question 12

Memorable Moments manufactures a product that uses 2.5 standard labor hours per unit at 
a standard hourly rate of $12.00 per hour. If 3,000 units required 7,400 actual hours at an hourly rate of $12.40 per hour, what is the Direct Labor (DL) Price Variance and (DL) Efficiency Variance?

Accepted Answer

Direct Labor (DL) Price Variance = (AQ x

Question 13

Which of the following statements is true regarding budgets?

Accepted Answer

A)  Actual numbers should never be compared to budgets, since budgets are simply estimates. 
B)  Variances resulting from comparison of actual and budgeted amounts will always require management to take corrective action. 
C)  Management should set expectations high and unattainable so that employees will be motivated to reach the goals set. 
D)  Managers use variance analysis to compare actual outcomes to the budget to evaluate performance and solve issues that caused the variances. 
A)  Actual numbers should never be compared to budgets, since budgets are simply estimates. 
B)  Variances resulting from comparison of actual and budgeted amounts will always require management to take corrective action. 
C)  Management should set expectations high and unattainable so that employees will be motivated to reach the goals set. 
D)  Managers use variance analysis to compare actual outcomes to the budget to evaluate performance and solve issues that caused the variances.

Question 14

The direct labor (DL) price variance reflects the difference between the

Accepted Answer

A)  standard direct labor cost for the actual direct labor hours used and the direct labor hours that were expected to use for the actual production. 
B)  actual direct labor rate and the standard direct labor rate for all of the direct labor hours used. 
C)  actual direct labor rate applied to the actual labor hours and the standard direct labor rate applied to the standard direct labor hours. 
D)  standard direct labor rate applied to the actual labor hours and the actual direct labor rate applied to the standard direct labor hours. 
A)  standard direct labor cost for the actual direct labor hours used and the direct labor hours that were expected to use for the actual production. 
B)  actual direct labor rate and the standard direct labor rate for all of the direct labor hours used. 
C)  actual direct labor rate applied to the actual labor hours and the standard direct labor rate applied to the standard direct labor hours. 
D)  standard direct labor rate applied to the actual labor hours and the actual direct labor rate applied to the standard direct labor hours.

Question 15

A comprehensive, organization-wide budget that requires inputs from many sources
Throughout the company is a(n)

Accepted Answer

A)  cash budget. 
B)  operational budget. 
C)  master budget. 
D)  financial budget. 
A)  cash budget. 
B)  operational budget. 
C)  master budget. 
D)  financial budget.

Question 16

Direct materials (DM) efficiency variances are recorded

Accepted Answer

A)  when materials are purchased. 
B)  during production. 
C)  when units are sold. 
D)  at the same time as direct materials (DM) price variances. 
A)  when materials are purchased. 
B)  during production. 
C)  when units are sold. 
D)  at the same time as direct materials (DM) price variances.

Question 17

Describe what the DL Price Variance and DL Efficiency Variance reflect and what questions 
each should address.

Accepted Answer

The DL Price Variance reflects the diffe

Question 18

Which of the following would not appear as a debit entry in the Work In Process (WIP) Inventory account when manufacturing a unit of product?

Accepted Answer

A)  Cost of goods manufactured (COGM) 
B)  Direct materials (DM) used 
C)  Direct labor (DL) used 
D)  Variable manufacturing overhead (MOH) assigned 
A)  Cost of goods manufactured (COGM) 
B)  Direct materials (DM) used 
C)  Direct labor (DL) used 
D)  Variable manufacturing overhead (MOH) assigned

Question 19

Which variance captures the difference in the standard variable-MOH cost for the actual quantity of the cost driver used, compared to the cost driver quantity expected for actual units produced?

Accepted Answer

A)  Variable-MOH Efficiency Variance 
B)  Fixed-MOH Price Variance 
C)  Variable-MOH Price Variance 
D)  Fixed-MOH Volume Variance 
A)  Variable-MOH Efficiency Variance 
B)  Fixed-MOH Price Variance 
C)  Variable-MOH Price Variance 
D)  Fixed-MOH Volume Variance

Question 20

Which of the following depicts how organizations use budgets and variance analysis to attain their goals?

Accepted Answer

A)  Troubleshoot and Plan ? Benchmark and Control ? Evaluate Performance and Motivate 
B)  Motivate and Benchmark ? Plan and Control ? Evaluate Performance and Troubleshoot 
C)  Plan and Control ? Evaluate Performance and Benchmark ? Motivate and Troubleshoot 
D)  Plan and Control ? Evaluate Performance and Troubleshoot ? Motivate and Benchmark 
A)  Troubleshoot and Plan ? Benchmark and Control ? Evaluate Performance and Motivate 
B)  Motivate and Benchmark ? Plan and Control ? Evaluate Performance and Troubleshoot 
C)  Plan and Control ? Evaluate Performance and Benchmark ? Motivate and Troubleshoot 
D)  Plan and Control ? Evaluate Performance and Troubleshoot ? Motivate and Benchmark

Which variance explains whether actual sales meant a larger or smaller portion of the total market than the plan?

Which of the following standards would be best suited to a futuristic production facility comprised of robots and drones, but lacking people?

Match the following term with its appropriate definition by including the correct letter in the blank next to the term. -Motivate

Cosmo Cookie Creations had the following variable cost data for the past month: What is Cosmo Cookie's Flexible Budget Variance and Sales Activity Variance?

General ledger accounts for variances are classified as

The sales price variance is computed as the

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

Standards should be reviewed and updated

When should a flexible budget be used instead of the master budget?

Memorable Moments manufactures a product that uses 2.5 standard labor hours per unit at a standard hourly rate of $12.00 per hour. If 3,000 units required 7,400 actual hours at an hourly rate of $12.40 per hour, what is the Direct Labor (DL) Price Variance and (DL) Efficiency Variance?

Which of the following statements is true regarding budgets?

The direct labor (DL) price variance reflects the difference between the

A comprehensive, organization-wide budget that requires inputs from many sources Throughout the company is a(n)

Direct materials (DM) efficiency variances are recorded

Describe what the DL Price Variance and DL Efficiency Variance reflect and what questions each should address.

Which of the following would not appear as a debit entry in the Work In Process (WIP) Inventory account when manufacturing a unit of product?

Which variance captures the difference in the standard variable-MOH cost for the actual quantity of the cost driver used, compared to the cost driver quantity expected for actual units produced?

Which of the following depicts how organizations use budgets and variance analysis to attain their goals?

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

Which variance explains whether actual sales meant a larger or smaller portion of the total market than the plan?

Which of the following standards would be best suited to a futuristic production facility comprised of robots and drones, but lacking people?

Match the following term with its appropriate definition by including the correct letter in the blank next to the term. -Motivate

Cosmo Cookie Creations had the following variable cost data for the past month: What is Cosmo Cookie's Flexible Budget Variance and Sales Activity Variance?

General ledger accounts for variances are classified as

The sales price variance is computed as the

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

Standards should be reviewed and updated

When should a flexible budget be used instead of the master budget?

Memorable Moments manufactures a product that uses 2.5 standard labor hours per unit at a standard hourly rate of $12.00 per hour. If 3,000 units required 7,400 actual hours at an hourly rate of $12.40 per hour, what is the Direct Labor (DL) Price Variance and (DL) Efficiency Variance?

Which of the following statements is true regarding budgets?

The direct labor (DL) price variance reflects the difference between the

A comprehensive, organization-wide budget that requires inputs from many sources Throughout the company is a(n)

Direct materials (DM) efficiency variances are recorded

Describe what the DL Price Variance and DL Efficiency Variance reflect and what questions each should address.

Which of the following would not appear as a debit entry in the Work In Process (WIP) Inventory account when manufacturing a unit of product?

Which variance captures the difference in the standard variable-MOH cost for the actual quantity of the cost driver used, compared to the cost driver quantity expected for actual units produced?

Which of the following depicts how organizations use budgets and variance analysis to attain their goals?

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