Question 1

What were the total actual direct hours worked?

Accepted Answer

A) 1,000. 
B) 3,000. 
C) 4,000. 
D) 5,000. 
E) 6,000. 
A) 1,000. 
B) 3,000. 
C) 4,000. 
D) 5,000. 
E) 6,000.

Question 2

The direct labor flexible-budget variance is:

Accepted Answer

A) $26,624.00 unfavorable. 
B) $31,948.80 unfavorable. 
C) $39,936.00 favorable. 
D) $71,884.80 favorable. 
E) $103,833.60 favorable. 
A) $26,624.00 unfavorable. 
B) $31,948.80 unfavorable. 
C) $39,936.00 favorable. 
D) $71,884.80 favorable. 
E) $103,833.60 favorable.

Question 3

The direct materials purchase-price variance in July is:

Accepted Answer

A) $10,000 unfavorable. 
B) $50,000 unfavorable. 
C) $80,000 unfavorable. 
D) $86,000 unfavorable. 
E) $90,000 unfavorable. 
A) $10,000 unfavorable. 
B) $50,000 unfavorable. 
C) $80,000 unfavorable. 
D) $86,000 unfavorable. 
E) $90,000 unfavorable.

Question 4

For a direct material, which one of the following is the difference between the actual and standard unit price of the direct material multiplied by the actual quantity of the material purchased?

Accepted Answer

A) Direct materials purchase price variance. 
B) Direct materials volume variance. 
C) Direct materials usage variance. 
D) Direct materials flexible-budget variance. 
E) Direct materials mix variance. 
A) Direct materials purchase price variance. 
B) Direct materials volume variance. 
C) Direct materials usage variance. 
D) Direct materials flexible-budget variance. 
E) Direct materials mix variance.

Question 5

The direct labor efficiency variance for December is:

Accepted Answer

A) $1,590 favorable. 
B) $5,650 favorable. 
C) $7,240 unfavorable. 
D) $59,410 unfavorable. 
A) $1,590 favorable. 
B) $5,650 favorable. 
C) $7,240 unfavorable. 
D) $59,410 unfavorable.

Question 6

The difference between actual and standard cost caused by the difference between the actual number of resource-units used and the standard number of resource-units that should have been used for the output of the period is called the:

Accepted Answer

A) Controllable variance. 
B) Master budget variance. 
C) Flexible-budget variance. 
D) Quantity (or efficiency) variance. 
E) Price variance. 
A) Controllable variance. 
B) Master budget variance. 
C) Flexible-budget variance. 
D) Quantity (or efficiency) variance. 
E) Price variance.

Question 7

The sales volume variance, in terms of operating income, is:

Accepted Answer

A) $20,000 unfavorable. 
B) $27,000 unfavorable. 
C) $36,000 unfavorable. 
D) $75,000 unfavorable. 
E) $90,000 unfavorablE. 
A) $20,000 unfavorable. 
B) $27,000 unfavorable. 
C) $36,000 unfavorable. 
D) $75,000 unfavorable. 
E) $90,000 unfavorablE.

Question 8

Which of the following statements about processing cycle efficiency (PCE) is not true:

Accepted Answer

A) It is defined as the ratio of processing time to non-processing time. 
B) It is a measure of operating process efficiency. 
C) It is based on the relationship between actual processing time and total production time. 
D) It incorporates notions of "value-added" and "non-value-added," as discussed in the development of activity-based cost (AB
C)  systems. 
E) The optimum value of PCE is 1. 
A) It is defined as the ratio of processing time to non-processing time. 
B) It is a measure of operating process efficiency. 
C) It is based on the relationship between actual processing time and total production time. 
D) It incorporates notions of "value-added" and "non-value-added," as discussed in the development of activity-based cost (AB
C)  systems. 
E) The optimum value of PCE is 1.

Question 9

The effect on sales, expenses, or operating income of changes in units sold is measured by the:

Accepted Answer

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

Question 10

An organization planned to use $82 of direct material per unit of output, but it actually used $80 per unit. During this period, the company planned to make 1,200 units, but actually produced only 1,000 units. The flexible budget amount for direct materials cost is:

Accepted Answer

A) $80,000. 
B) $82,000. 
C) $96,000. 
D) $98,400. 
A) $80,000. 
B) $82,000. 
C) $96,000. 
D) $98,400.

Question 11

The direct labor efficiency variance for July was:

Accepted Answer

A) $6,600 favorable. 
B) $7,200 unfavorable. 
C) $8,000 unfavorable. 
D) $14,400 favorable. 
E) $79,200 favorable. 
A) $6,600 favorable. 
B) $7,200 unfavorable. 
C) $8,000 unfavorable. 
D) $14,400 favorable. 
E) $79,200 favorable.

Question 12

Customer-response time (CRT) is usually defined as:

Accepted Answer

A) The time between when a customer places an order and the time when the order is received by the customer. 
B) The elapsed time between initial customer contact and the time a customer places an order. 
C) The time between when a customer places an order and when that order is manufactured. 
D) The time between when an order is started into production and when that order is completed. 
E) The time it takes to respond to customer inquiries. 
A) The time between when a customer places an order and the time when the order is received by the customer. 
B) The elapsed time between initial customer contact and the time a customer places an order. 
C) The time between when a customer places an order and when that order is manufactured. 
D) The time between when an order is started into production and when that order is completed. 
E) The time it takes to respond to customer inquiries.

Question 13

Which of the following is not a plausible cause of a direct labor efficiency variance?

Accepted Answer

A) Poor scheduling of work. 
B) Inadequate supervision of workers. 
C) Materials used are different from those specified. 
D) Failure to update the standard cost to conform to wage provisions in the union contract. 
E) Batch sizes during the period were different from standard. 
A) Poor scheduling of work. 
B) Inadequate supervision of workers. 
C) Materials used are different from those specified. 
D) Failure to update the standard cost to conform to wage provisions in the union contract. 
E) Batch sizes during the period were different from standard.

Question 14

The sales volume variance, measured in terms of direct labor cost, for July was:

Accepted Answer

A) $6,600 favorable. 
B) $7,200 favorable. 
C) $51,000 unfavorable. 
D) $57,600 unfavorable. 
E) $72,000 unfavorablE. 
A) $6,600 favorable. 
B) $7,200 favorable. 
C) $51,000 unfavorable. 
D) $57,600 unfavorable. 
E) $72,000 unfavorablE.

Question 15

The standard cost per ounce of EPP is:

Accepted Answer

A) $6.22. 
B) $6.30. 
C) $6.65. 
D) $6.84. 
E) Greater than $7.00 
A) $6.22. 
B) $6.30. 
C) $6.65. 
D) $6.84. 
E) Greater than $7.00

Question 16

A "standard cost" is a predetermined amount (e.g., cost) that:

Accepted Answer

A) Should be incurred under relatively efficient operating conditions. 
B) Will be incurred for an operation or a specific objective. 
C) Must occur for an operation or a specific objective. 
D) Cannot be changed once it is established by management. 
E) Is useful for planning and control but not inventory valuation purposes. 
A) Should be incurred under relatively efficient operating conditions. 
B) Will be incurred for an operation or a specific objective. 
C) Must occur for an operation or a specific objective. 
D) Cannot be changed once it is established by management. 
E) Is useful for planning and control but not inventory valuation purposes.

Question 17

A "currently attainable standard" emphasizes:

Accepted Answer

A) Ideal or theoretical performance. 
B) Past performance of the organization. 
C) Future performance of the organization's primary competitors. 
D) Maximum performance. 
E) Relatively efficient operating performance. 
A) Ideal or theoretical performance. 
B) Past performance of the organization. 
C) Future performance of the organization's primary competitors. 
D) Maximum performance. 
E) Relatively efficient operating performance.

Question 18

The total operating income variance for a period reveals whether a company has achieved:

Accepted Answer

A) The sales level budgeted for the period. 
B) An adequate return on investment (assets) during the period. 
C) Control of basic business processes. 
D) Control of total expenses for the period. 
E) The master budgeted operating income for the period. 
A) The sales level budgeted for the period. 
B) An adequate return on investment (assets) during the period. 
C) Control of basic business processes. 
D) Control of total expenses for the period. 
E) The master budgeted operating income for the period.

Question 19

A standard that assumes perfect implementation and maximum efficiency is called a(n):

Accepted Answer

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

Question 20

The direct labor rate variance is:

Accepted Answer

A) $36,900 unfavorable. 
B) $37,800 unfavorable. 
C) $55,350 unfavorable. 
D) $56,700 unfavorable. 
E) $73,800 unfavorable. 
A) $36,900 unfavorable. 
B) $37,800 unfavorable. 
C) $55,350 unfavorable. 
D) $56,700 unfavorable. 
E) $73,800 unfavorable.

What were the total actual direct hours worked?

The direct labor flexible-budget variance is:

The direct materials purchase-price variance in July is:

For a direct material, which one of the following is the difference between the actual and standard unit price of the direct material multiplied by the actual quantity of the material purchased?

The direct labor efficiency variance for December is:

The difference between actual and standard cost caused by the difference between the actual number of resource-units used and the standard number of resource-units that should have been used for the output of the period is called the:

The sales volume variance, in terms of operating income, is:

Which of the following statements about processing cycle efficiency (PCE) is not true:

The effect on sales, expenses, or operating income of changes in units sold is measured by the:

An organization planned to use $82 of direct material per unit of output, but it actually used $80 per unit. During this period, the company planned to make 1,200 units, but actually produced only 1,000 units. The flexible budget amount for direct materials cost is:

The direct labor efficiency variance for July was:

Customer-response time (CRT) is usually defined as:

Which of the following is not a plausible cause of a direct labor efficiency variance?

The sales volume variance, measured in terms of direct labor cost, for July was:

The standard cost per ounce of EPP is:

A "standard cost" is a predetermined amount (e.g., cost) that:

A "currently attainable standard" emphasizes:

The total operating income variance for a period reveals whether a company has achieved:

A standard that assumes perfect implementation and maximum efficiency is called a(n):

The direct labor rate 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

What were the total actual direct hours worked?

The direct labor flexible-budget variance is:

The direct materials purchase-price variance in July is:

For a direct material, which one of the following is the difference between the actual and standard unit price of the direct material multiplied by the actual quantity of the material purchased?

The direct labor efficiency variance for December is:

The difference between actual and standard cost caused by the difference between the actual number of resource-units used and the standard number of resource-units that should have been used for the output of the period is called the:

The sales volume variance, in terms of operating income, is:

Which of the following statements about processing cycle efficiency (PCE) is not true:

The effect on sales, expenses, or operating income of changes in units sold is measured by the:

An organization planned to use $82 of direct material per unit of output, but it actually used $80 per unit. During this period, the company planned to make 1,200 units, but actually produced only 1,000 units. The flexible budget amount for direct materials cost is:

The direct labor efficiency variance for July was:

Customer-response time (CRT) is usually defined as:

Which of the following is not a plausible cause of a direct labor efficiency variance?

The sales volume variance, measured in terms of direct labor cost, for July was:

The standard cost per ounce of EPP is:

A "standard cost" is a predetermined amount (e.g., cost) that:

A "currently attainable standard" emphasizes:

The total operating income variance for a period reveals whether a company has achieved:

A standard that assumes perfect implementation and maximum efficiency is called a(n):

The direct labor rate 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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