Question 1

The actual total quantity of materials purchased during the month was:

Accepted Answer

A) 10,000 square feet. 
B) 10,400 square feet. 
C) 11,000 square feet. 
D) 13,840 square feet. 
E) 14,880 square feet. 
A) 10,000 square feet. 
B) 10,400 square feet. 
C) 11,000 square feet. 
D) 13,840 square feet. 
E) 14,880 square feet.

Question 2

The actual direct labor hours worked (AQ) during November was:

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 3

A standard that sets the performance criterion at a level that workers with proper training and experience can attain most of the time without extraordinary effort is a(n):

Accepted Answer

A) Currently attainable standard. 
B) Practical standard. 
C) Efficiency standard. 
D) Ideal standard. 
E) Authoritative standard. 
A) Currently attainable standard. 
B) Practical standard. 
C) Efficiency standard. 
D) Ideal standard. 
E) Authoritative standard.

Question 4

Operational control systems can be distinguished from financial control systems:

Accepted Answer

A) In the time horizon: financial-control systems have a long-term perspective. 
B) Because they focus on the control of basic business processes. 
C) Because such systems rely on the use of flexible, not static, budgets. 
D) Because they focus on explaining the total operating income variance for a period. 
E) Because they do not include nonfinancial performance indicators. 
A) In the time horizon: financial-control systems have a long-term perspective. 
B) Because they focus on the control of basic business processes. 
C) Because such systems rely on the use of flexible, not static, budgets. 
D) Because they focus on explaining the total operating income variance for a period. 
E) Because they do not include nonfinancial performance indicators.

Question 5

By convention, short-term financial control is accomplished by all the following except:

Accepted Answer

A) Comparing actual to budgeted financial results. 
B) Calculating a series of cost and revenue variances at the end of the period. 
C) The use of flexible budgets and standard costs. 
D) Explaining the total operating-income variance for a given period. 
E) The use of productivity analysis. 
A) Comparing actual to budgeted financial results. 
B) Calculating a series of cost and revenue variances at the end of the period. 
C) The use of flexible budgets and standard costs. 
D) Explaining the total operating-income variance for a given period. 
E) The use of productivity analysis.

Question 6

Traditional financial control systems have recently been criticized because:

Accepted Answer

A) They use flexible, not static, budgets. 
B) They generally lead to goal-congruent behavior on the part of managers. 
C) They focus more in improving basic business processes than short-term financial results. 
D) They fail to incorporate nonfinancial performance indicators into the evaluation process. 
E) They provide performance data on a real-time basis. 
A) They use flexible, not static, budgets. 
B) They generally lead to goal-congruent behavior on the part of managers. 
C) They focus more in improving basic business processes than short-term financial results. 
D) They fail to incorporate nonfinancial performance indicators into the evaluation process. 
E) They provide performance data on a real-time basis.

Question 7

The total operating-income variance is:

Accepted Answer

A) $500 favorable. 
B) $1,500 unfavorable. 
C) $1,500 favorable. 
D) $2,500 unfavorable. 
E) $3,000 favorable. 
A) $500 favorable. 
B) $1,500 unfavorable. 
C) $1,500 favorable. 
D) $2,500 unfavorable. 
E) $3,000 favorable.

Question 8

The total number of budgeted units reflected in the master budget for September was:

Accepted Answer

A) 36,000 units. 
B) 40,000 units. 
C) 45,000 units. 
D) 48,000 units. 
E) 50,000 units. 
A) 36,000 units. 
B) 40,000 units. 
C) 45,000 units. 
D) 48,000 units. 
E) 50,000 units.

Question 9

Which one of the following is the difference between the actual direct labor hours and the standard direct labor hours for the units manufactured, multiplied by the standard hourly wage rate per hour?

Accepted Answer

A) Direct labor price variance. 
B) Direct labor efficiency variance. 
C) Total direct labor standard cost variance. 
D) Direct labor flexible-budget variance. 
E) Direct labor operating-income variance. 
A) Direct labor price variance. 
B) Direct labor efficiency variance. 
C) Total direct labor standard cost variance. 
D) Direct labor flexible-budget variance. 
E) Direct labor operating-income variance.

Question 10

The amount of operating income in the flexible budget (FB) for September was:

Accepted Answer

A) $40,000. 
B) $48,000. 
C) $56,000. 
D) $70,000. 
E) $78,000. 
A) $40,000. 
B) $48,000. 
C) $56,000. 
D) $70,000. 
E) $78,000.

Question 11

What is a direct labor efficiency variance, and what are some of the likely causes of this variance?

Accepted Answer

Answer may vary
Feedback: The direct lab

Question 12

An organization's overall management accounting and control system:

Accepted Answer

A) Includes the planning function. 
B) Is also referred as the organization's core performance-measurement system. 
C) Is separate from its operational control system. 
D) Includes nonfinancial, but not financial, performance measures. 
E) Focuses on strategic, not operational, control 
A) Includes the planning function. 
B) Is also referred as the organization's core performance-measurement system. 
C) Is separate from its operational control system. 
D) Includes nonfinancial, but not financial, performance measures. 
E) Focuses on strategic, not operational, control

Question 13

Prokp's standard direct labor rate per hour (SP) in April was:

Accepted Answer

A) $16.00. 
B) $18.00. 
C) $20.00. 
D) $24.00. 
E) $26.67. 
A) $16.00. 
B) $18.00. 
C) $20.00. 
D) $24.00. 
E) $26.67.

Question 14

A flexible-budget variance measures the impact on short-term operating profit of:

Accepted Answer

A) Changes in sales volume. 
B) Changes in output during the period. 
C) Differences in sales mix-budgeted versus actual. 
D) Selling price and cost differences-actual versus budgeted. 
E) Selling price, but not cost differences-actual versus budgeted. 
A) Changes in sales volume. 
B) Changes in output during the period. 
C) Differences in sales mix-budgeted versus actual. 
D) Selling price and cost differences-actual versus budgeted. 
E) Selling price, but not cost differences-actual versus budgeted.

Question 15

What was Mandy's direct labor rate variance for the month?

Accepted Answer

A) $15,120 unfavorable. 
B) $20,880 unfavorable. 
C) $23,490 unfavorable. 
D) $42,480 favorable. 
A) $15,120 unfavorable. 
B) $20,880 unfavorable. 
C) $23,490 unfavorable. 
D) $42,480 favorable.

Question 16

The total direct labor flexible-budget variance in February is:

Accepted Answer

A) $7,350 favorable. 
B) $7,840 favorable. 
C) $30,870 favorable. 
D) $30,870 unfavorable. 
E) $31,360 favorable. 
A) $7,350 favorable. 
B) $7,840 favorable. 
C) $30,870 favorable. 
D) $30,870 unfavorable. 
E) $31,360 favorable.

Question 17

A flexible budget contains:

Accepted Answer

A) Cost targets based on actual output (e.g., sales volume) for the period. 
B) Cost targets based on planned output (e.g., sales volume) for the period. 
C) Actual costs incurred for the actual output of the period. 
D) Costs and revenues for the difference between planned and actual output. 
E) Costs based on actual output of the period, and revenue based on master budgeted output. 
A) Cost targets based on actual output (e.g., sales volume) for the period. 
B) Cost targets based on planned output (e.g., sales volume) for the period. 
C) Actual costs incurred for the actual output of the period. 
D) Costs and revenues for the difference between planned and actual output. 
E) Costs based on actual output of the period, and revenue based on master budgeted output.

Question 18

The direct labor rate variance for July is:

Accepted Answer

A) $6,600 favorable. 
B) $16,600 favorable. 
C) $21,000 unfavorable. 
D) $57,600 unfavorable. 
E) $58,200 unfavorablE. 
A) $6,600 favorable. 
B) $16,600 favorable. 
C) $21,000 unfavorable. 
D) $57,600 unfavorable. 
E) $58,200 unfavorablE.

Question 19

The difference between the actual operating income of the period and master budgeted operating income for the period is the:

Accepted Answer

A) Total flexible-budget variance. 
B) Sales volume variance. 
C) Sales price variance 
D) Operating income flexible-budget variance. 
E) Total operating income variance. 
A) Total flexible-budget variance. 
B) Sales volume variance. 
C) Sales price variance 
D) Operating income flexible-budget variance. 
E) Total operating income variance.

Question 20

The direct labor flexible-budget variance is:

Accepted Answer

A) $18,900 unfavorable. 
B) $42,300 unfavorable. 
C) $46,350 unfavorable. 
D) $44,500 unfavorable. 
E) $54,900 unfavorable. 
A) $18,900 unfavorable. 
B) $42,300 unfavorable. 
C) $46,350 unfavorable. 
D) $44,500 unfavorable. 
E) $54,900 unfavorable.

The actual total quantity of materials purchased during the month was:

The actual direct labor hours worked (AQ) during November was:

A standard that sets the performance criterion at a level that workers with proper training and experience can attain most of the time without extraordinary effort is a(n):

Operational control systems can be distinguished from financial control systems:

By convention, short-term financial control is accomplished by all the following except:

Traditional financial control systems have recently been criticized because:

The total operating-income variance is:

The total number of budgeted units reflected in the master budget for September was:

Which one of the following is the difference between the actual direct labor hours and the standard direct labor hours for the units manufactured, multiplied by the standard hourly wage rate per hour?

The amount of operating income in the flexible budget (FB) for September was:

What is a direct labor efficiency variance, and what are some of the likely causes of this variance?

An organization's overall management accounting and control system:

Prokp's standard direct labor rate per hour (SP) in April was:

A flexible-budget variance measures the impact on short-term operating profit of:

What was Mandy's direct labor rate variance for the month?

The total direct labor flexible-budget variance in February is:

A flexible budget contains:

The direct labor rate variance for July is:

The difference between the actual operating income of the period and master budgeted operating income for the period is the:

The direct labor flexible-budget variance is:

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

The actual total quantity of materials purchased during the month was:

The actual direct labor hours worked (AQ) during November was:

A standard that sets the performance criterion at a level that workers with proper training and experience can attain most of the time without extraordinary effort is a(n):

Operational control systems can be distinguished from financial control systems:

By convention, short-term financial control is accomplished by all the following except:

Traditional financial control systems have recently been criticized because:

The total operating-income variance is:

The total number of budgeted units reflected in the master budget for September was:

Which one of the following is the difference between the actual direct labor hours and the standard direct labor hours for the units manufactured, multiplied by the standard hourly wage rate per hour?

The amount of operating income in the flexible budget (FB) for September was:

What is a direct labor efficiency variance, and what are some of the likely causes of this variance?

An organization's overall management accounting and control system:

Prokp's standard direct labor rate per hour (SP) in April was:

A flexible-budget variance measures the impact on short-term operating profit of:

What was Mandy's direct labor rate variance for the month?

The total direct labor flexible-budget variance in February is:

A flexible budget contains:

The direct labor rate variance for July is:

The difference between the actual operating income of the period and master budgeted operating income for the period is the:

The direct labor flexible-budget variance is:

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