Question 1

What was the direct materials usage variance in August?

Accepted Answer

A) $180 unfavorable. 
B) $360 unfavorable. 
C) $540 favorable. 
D) $540 unfavorable. 
E) $720 unfavorable. 
A) $180 unfavorable. 
B) $360 unfavorable. 
C) $540 favorable. 
D) $540 unfavorable. 
E) $720 unfavorable.

Question 2

Ally's direct labor rate variance for July is:

Accepted Answer

A) $2,000 unfavorable. 
B) $4,000 unfavorable. 
C) $20,000 favorable. 
D) $22,000 unfavorable. 
E) $26,000 unfavorablE. 
A) $2,000 unfavorable. 
B) $4,000 unfavorable. 
C) $20,000 favorable. 
D) $22,000 unfavorable. 
E) $26,000 unfavorablE.

Question 3

Customer response time (CRT) can be defined as:

Accepted Answer

A) The time lapse between when a customer places an order and when that order is delivered to the customer. 
B) Wait time + manufacturing time. 
C) Manufacturing lead time + production cycle time. 
D) Receipt time + delivery time. 
E) Manufacturing lead time less delivery time. 
A) The time lapse between when a customer places an order and when that order is delivered to the customer. 
B) Wait time + manufacturing time. 
C) Manufacturing lead time + production cycle time. 
D) Receipt time + delivery time. 
E) Manufacturing lead time less delivery time.

Question 4

The amount C is:

Accepted Answer

A) $72,000. 
B) $74,400. 
C) $75,000. 
D) $90,000. 
E) $111,000. 
A) $72,000. 
B) $74,400. 
C) $75,000. 
D) $90,000. 
E) $111,000.

Question 5

The total flexible-budget (FB) variance for operating income is:

Accepted Answer

A) $3,600 unfavorable. 
B) $6,000 unfavorable. 
C) $15,400 unfavorable. 
D) $21,000 unfavorable. 
E) $27,000 unfavorable. 
A) $3,600 unfavorable. 
B) $6,000 unfavorable. 
C) $15,400 unfavorable. 
D) $21,000 unfavorable. 
E) $27,000 unfavorable.

Question 6

The budgeted fixed cost is:

Accepted Answer

A) $30,000. 
B) $45,000. 
C) $71,000. 
D) $78,000. 
E) $93,000. 
A) $30,000. 
B) $45,000. 
C) $71,000. 
D) $78,000. 
E) $93,000.

Question 7

The total standard direct labor hours (SQ) in November for the output produced are:

Accepted Answer

A) 18,720. 
B) 19,200. 
C) 20,800. 
D) 22,400. 
E) 22,464. 
A) 18,720. 
B) 19,200. 
C) 20,800. 
D) 22,400. 
E) 22,464.

Question 8

The "flexible budget" can best be described as a budget that adjusts:

Accepted Answer

A) Revenues for sales-dollar changes. 
B) Revenues and expenses for changes in output (such as sales volume). 
C) Expenses for changes in budgeted output between two periods. 
D) For efficiency, but not selling price and cost variances. 
E) For selling price and cost variances, but not efficiency variances. 
A) Revenues for sales-dollar changes. 
B) Revenues and expenses for changes in output (such as sales volume). 
C) Expenses for changes in budgeted output between two periods. 
D) For efficiency, but not selling price and cost variances. 
E) For selling price and cost variances, but not efficiency variances.

Question 9

The arrival of new manufacturing techniques such as automation, flexible manufacturing systems, and cluster or cell manufacturing has:

Accepted Answer

A) Emphasized the importance of direct labor variances. 
B) Not had an effect on the importance of direct labor variances. 
C) De-emphasized the importance of direct labor cost variances. 
D) Made direct labor variances obsolete. 
E) Eliminated the need to calculate and report direct materials variances. 
A) Emphasized the importance of direct labor variances. 
B) Not had an effect on the importance of direct labor variances. 
C) De-emphasized the importance of direct labor cost variances. 
D) Made direct labor variances obsolete. 
E) Eliminated the need to calculate and report direct materials variances.

Question 10

The column heading identified as A is:

Accepted Answer

A) Selling price variance. 
B) Efficiency variance. 
C) Flexible-budget (F
B)  variances. 
D) Sales volume variance. 
E) Production volume variance. 
A) Selling price variance. 
B) Efficiency variance. 
C) Flexible-budget (F
B)  variances. 
D) Sales volume variance. 
E) Production volume variance.

Question 11

Ally's direct labor efficiency variance for July is:

Accepted Answer

A) $2,000 unfavorable. 
B) $4,000 unfavorable. 
C) $20,000 favorable. 
D) $22,000 unfavorable. 
E) $26,000 unfavorablE. 
A) $2,000 unfavorable. 
B) $4,000 unfavorable. 
C) $20,000 favorable. 
D) $22,000 unfavorable. 
E) $26,000 unfavorablE.

Question 12

A standard cost system:

Accepted Answer

A) Cannot be used in conjunction with a job-cost system. 
B) Is not permissible for financial-reporting purposes. 
C) Is most easily introduced in conjunction with a process-cost system. 
D) Is useful for planning but not control purposes. 
E) Is useful for cost control but not planning purposes. 
A) Cannot be used in conjunction with a job-cost system. 
B) Is not permissible for financial-reporting purposes. 
C) Is most easily introduced in conjunction with a process-cost system. 
D) Is useful for planning but not control purposes. 
E) Is useful for cost control but not planning purposes.

Question 13

The amount E is:

Accepted Answer

A) $61,500. 
B) $76,500. 
C) $79,500. 
D) $88,500. 
E) $91,500. 
A) $61,500. 
B) $76,500. 
C) $79,500. 
D) $88,500. 
E) $91,500.

Question 14

Which of the following benefits is not typically associated with a move to a just-in-time (JIT) manufacturing system?

Accepted Answer

A) Raw materials are delivered as close as possible to time of production. 
B) Existence of long-term contracts with selected suppliers. 
C) Reduction in employee training and education costs. 
D) Decreases in manufacturing lead time. 
E) Improved customer-response time (CRT). 
A) Raw materials are delivered as close as possible to time of production. 
B) Existence of long-term contracts with selected suppliers. 
C) Reduction in employee training and education costs. 
D) Decreases in manufacturing lead time. 
E) Improved customer-response time (CRT).

Question 15

One important short-term financial goal for a company is to earn the projected operating income for the period. Attainment of this goal is measured by comparing the actual operating income for the period to the:

Accepted Answer

A) Flexible-budget operating income for the period. 
B) Prior period's operating income. 
C) Income reflected in the company's balanced scorecard. 
D) Master budget operating income. 
E) Industry average operating income. 
A) Flexible-budget operating income for the period. 
B) Prior period's operating income. 
C) Income reflected in the company's balanced scorecard. 
D) Master budget operating income. 
E) Industry average operating income.

Question 16

What four variances may be included as a component of the total variable cost flexible-budget variance for a given period?

Accepted Answer

Answer may vary
Feedback: The total vari

Question 17

The actual amount of operating income earned in September was:

Accepted Answer

A) $15,000. 
B) $40,000. 
C) $63,000. 
D) $78,000. 
E) $105,000. 
A) $15,000. 
B) $40,000. 
C) $63,000. 
D) $78,000. 
E) $105,000.

Question 18

Which of the following is not considered a basic business process?

Accepted Answer

A) Operating processes. 
B) Customer-management processes. 
C) Innovation processes. 
D) Social/regulatory processes. 
E) Just-in-time (JIT) processes. 
A) Operating processes. 
B) Customer-management processes. 
C) Innovation processes. 
D) Social/regulatory processes. 
E) Just-in-time (JIT) processes.

Question 19

The master budget operating income for September was:

Accepted Answer

A) $78,000. 
B) $105,000. 
C) $108,000. 
D) $110,000. 
E) $135,000. 
A) $78,000. 
B) $105,000. 
C) $108,000. 
D) $110,000. 
E) $135,000.

Question 20

A manufacturer planned to use $82 of materials per unit produced, but in the most recent period it actually used $80 of material per unit produced. During this same period, the company planned to produce 1,200 units, but actually produced only 1,000 units. The flexible-budget variance for materials is:

Accepted Answer

A) $2,000 favorable. 
B) Impossible to determine without additional information. 
C) $14,000 unfavorable 
D) $16,400 unfavorable. 
E) $2,400 unfavorable. 
A) $2,000 favorable. 
B) Impossible to determine without additional information. 
C) $14,000 unfavorable 
D) $16,400 unfavorable. 
E) $2,400 unfavorable.

What was the direct materials usage variance in August?

Ally's direct labor rate variance for July is:

Customer response time (CRT) can be defined as:

The amount C is:

The total flexible-budget (FB) variance for operating income is:

The budgeted fixed cost is:

The total standard direct labor hours (SQ) in November for the output produced are:

The "flexible budget" can best be described as a budget that adjusts:

The arrival of new manufacturing techniques such as automation, flexible manufacturing systems, and cluster or cell manufacturing has:

The column heading identified as A is:

Ally's direct labor efficiency variance for July is:

A standard cost system:

The amount E is:

Which of the following benefits is not typically associated with a move to a just-in-time (JIT) manufacturing system?

One important short-term financial goal for a company is to earn the projected operating income for the period. Attainment of this goal is measured by comparing the actual operating income for the period to the:

What four variances may be included as a component of the total variable cost flexible-budget variance for a given period?

The actual amount of operating income earned in September was:

Which of the following is not considered a basic business process?

The master budget operating income for September was:

Cost Management and Strategy

Implementing Strategy: the Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

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Exam 14: Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

What was the direct materials usage variance in August?

Ally's direct labor rate variance for July is:

Customer response time (CRT) can be defined as:

The amount C is:

The total flexible-budget (FB) variance for operating income is:

The budgeted fixed cost is:

The total standard direct labor hours (SQ) in November for the output produced are:

The "flexible budget" can best be described as a budget that adjusts:

The arrival of new manufacturing techniques such as automation, flexible manufacturing systems, and cluster or cell manufacturing has:

The column heading identified as A is:

Ally's direct labor efficiency variance for July is:

A standard cost system:

The amount E is:

Which of the following benefits is not typically associated with a move to a just-in-time (JIT) manufacturing system?

One important short-term financial goal for a company is to earn the projected operating income for the period. Attainment of this goal is measured by comparing the actual operating income for the period to the:

What four variances may be included as a component of the total variable cost flexible-budget variance for a given period?

The actual amount of operating income earned in September was:

Which of the following is not considered a basic business process?

The master budget operating income for September was:

Cost Management and Strategy

Implementing Strategy: the Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters