Question 1

Which of the following variances are most similar with respect to the manner in which they are calculated?

Accepted Answer

A) Labor rate variance and labor efficiency variance. 
B) Material price variance and material quantity variance. 
C) Material price variance,material quantity variance,and total material variance. 
D) Material price variance and labor rate variance. 
E) Material price variance and labor efficiency variancE. 
A) Labor rate variance and labor efficiency variance. 
B) Material price variance and material quantity variance. 
C) Material price variance,material quantity variance,and total material variance. 
D) Material price variance and labor rate variance. 
E) Material price variance and labor efficiency variancE.

Question 2

The term "management by exception" is best defined as:

Accepted Answer

A) choosing exceptional managers. 
B) controlling actions of subordinates through acceptance of management techniques. 
C) investigating unfavorable variances. 
D)  Devoting management time to investigate significant variances. 
E) controlling costs so that non-zero variances are treated as "exceptional." 
A) choosing exceptional managers. 
B) controlling actions of subordinates through acceptance of management techniques. 
C) investigating unfavorable variances. 
D)  Devoting management time to investigate significant variances. 
E) controlling costs so that non-zero variances are treated as "exceptional."

Question 3

Which of the following would be considered if a company desires to establish a series of practical manufacturing standards?

Accepted Answer

A) The productivity loss associated with a short-term worker slowdown. 
B) Normal defect rates in an assembly process. 
C) Highly unusual spoilage rates of direct materials. 
D) Quantity discounts associated with purchases of direct materials. 
E) Both "B" and "D." 
A) The productivity loss associated with a short-term worker slowdown. 
B) Normal defect rates in an assembly process. 
C) Highly unusual spoilage rates of direct materials. 
D) Quantity discounts associated with purchases of direct materials. 
E) Both "B" and "D."

Question 4

Soloman Corporation recently purchased 25,000 gallons of direct material at $5.60 per gallon.Usage by the end of the period amounted to 23,000 gallons.If the standard cost is $6.00 per gallon and the company believes in computing variances at the earliest point possible,the direct-material price variance would be calculated as:

Accepted Answer

A) $800F. 
B) $9,200F. 
C) $9,200U. 
D) $10,000F. 
E) $10,000U. 
A) $800F. 
B) $9,200F. 
C) $9,200U. 
D) $10,000F. 
E) $10,000U.

Question 5

Which of the following would not be a concern of a company that desires to compete in a global manufacturing arena?

Accepted Answer

A) Number of new products introduced. 
B) Manufacturing cycle efficiency. 
C) Number of customer complaints. 
D) Number of on-time deliveries. 
E) All of these would be concerns. 
A) Number of new products introduced. 
B) Manufacturing cycle efficiency. 
C) Number of customer complaints. 
D) Number of on-time deliveries. 
E) All of these would be concerns.

Question 6

The direct-material price variance is:

Accepted Answer

A) $2,880U. 
B) $2,920F. 
C) $2,920U. 
D) $3,000F. 
E) $3,000U. 
A) $2,880U. 
B) $2,920F. 
C) $2,920U. 
D) $3,000F. 
E) $3,000U.

Question 7

Consider the following statements about variance investigation:
I.Variance investigation involves a look at only unfavorable variances.
II.Variance investigation is typically based on a cost-benefit analysis.
III.Variance investigation is often performed by establishing guidelines similar to the following: Investigate variances that are greater than $X or greater than Y% of standard cost.
Which of the above statements is (are)true?

Accepted Answer

A) I only. 
B) II only. 
C) III only. 
D) II and III. 
E) I,II,and III. 
A) I only. 
B) II only. 
C) III only. 
D) II and III. 
E) I,II,and III.

Question 8

At the end of the accounting period,most companies close variance accounts to:

Accepted Answer

A) Raw-Material Inventory. 
B) Work-in-Process Inventory. 
C) Finished-Goods Inventory. 
D) Cost of Goods SolD. 
E) Income Summary. 
A) Raw-Material Inventory. 
B) Work-in-Process Inventory. 
C) Finished-Goods Inventory. 
D) Cost of Goods SolD. 
E) Income Summary.

Question 9

The management philosophy known as theory of constraints is most closely tied to:

Accepted Answer

A) cash management. 
B) contribution margin analysis. 
C) job costing systems. 
D) standard costing systems. 
E) organizational bottlenecks. 
A) cash management. 
B) contribution margin analysis. 
C) job costing systems. 
D) standard costing systems. 
E) organizational bottlenecks.

Question 10

Which of the following journal entries definitely contains an error?

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
E) 
  
A) 
  
B) 
  
C) 
  
D) 
  
E)

Question 11

Which of the following are methods for setting standards?

Accepted Answer

A) Analysis of historical data and goal congruence. 
B) Task analysis and matrix application forms. 
C) Task analysis and the analysis of historical data. 
D) Matrix application forms and analysis of historical data. 
E) Goal congruence and task analysis. 
A) Analysis of historical data and goal congruence. 
B) Task analysis and matrix application forms. 
C) Task analysis and the analysis of historical data. 
D) Matrix application forms and analysis of historical data. 
E) Goal congruence and task analysis.

Question 12

To improve its manufacturing efficiency,companies should strive toward increasing __________ time as a percentage of processing time + inspection time + waiting time + move time.The blank is:

Accepted Answer

A) processing time. 
B) lead time. 
C) waiting time. 
D) move time. 
E) inspection timE. 
A) processing time. 
B) lead time. 
C) waiting time. 
D) move time. 
E) inspection timE.

Question 13

Denver Enterprises recently used 14,000 labor hours to produce 7,500 completed units.According to manufacturing specifications,each unit is anticipated to take two hours to complete.The company's actual payroll cost amounted to $158,200.If the standard labor cost per hour is $11,Denver's labor efficiency variance is:

Accepted Answer

A) $11,000U. 
B) $11,000F. 
C) $11,300U. 
D) $11,300F. 
E) None of thesE. 
A) $11,000U. 
B) $11,000F. 
C) $11,300U. 
D) $11,300F. 
E) None of thesE.

Question 14

Which of the following choices correctly notes a characteristic associated with perfection standards and one associated with practical standards?

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Question 15

The direct-labor rate variance is:

Accepted Answer

A) $7,800F. 
B) $7,950F. 
C) $8,020F. 
D) $8,000U. 
E) None of thesE. 
A) $7,800F. 
B) $7,950F. 
C) $8,020F. 
D) $8,000U. 
E) None of thesE.

Question 16

An increasingly popular approach that integrates financial and customer performance measures with measures in the areas of internal operations and learning and growth is known as:

Accepted Answer

A) the integrated performance measurement tool (IPMT). 
B) the balanced scorecard. 
C) gain sharing. 
D) cycle efficiency. 
E) overall quality assessment (OQ
A) . 
A) the integrated performance measurement tool (IPMT). 
B) the balanced scorecard. 
C) gain sharing. 
D) cycle efficiency. 
E) overall quality assessment (OQ
A) .

Question 17

Quicksilver Company has set the following standards for one unit of product:
Direct material
Quantity: 6.2 pounds per unit
Price per pound: $11 per pound
Direct labor
Quantity: 6 hours per unit
Rate per hour: $23 per hour
Actual costs incurred in the production of 2,800 units were as follows:
Direct material: $194,350 ($11.50 per pound)
Direct labor: $393,750 ($22.50 per hour)
All materials purchased were consumed during the period.
Required:
Calculate the direct-material price and quantity variances,and the direct-labor rate and efficiency variances.Indicate whether each variance is favorable or unfavorable.

Accepted Answer

The answer of Quicksilver Company has set the following standards...

Which of the following variances are most similar with respect to the manner in which they are calculated?

The term "management by exception" is best defined as:

Which of the following would be considered if a company desires to establish a series of practical manufacturing standards?

Which of the following would not be a concern of a company that desires to compete in a global manufacturing arena?

The direct-material price variance is:

At the end of the accounting period,most companies close variance accounts to:

The management philosophy known as theory of constraints is most closely tied to:

Which of the following journal entries definitely contains an error?

Which of the following are methods for setting standards?

To improve its manufacturing efficiency,companies should strive toward increasing __________ time as a percentage of processing time + inspection time + waiting time + move time.The blank is:

Which of the following choices correctly notes a characteristic associated with perfection standards and one associated with practical standards?

The direct-labor rate variance is:

An increasingly popular approach that integrates financial and customer performance measures with measures in the areas of internal operations and learning and growth is known as:

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters

Exam 10: Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Which of the following variances are most similar with respect to the manner in which they are calculated?

The term "management by exception" is best defined as:

Which of the following would be considered if a company desires to establish a series of practical manufacturing standards?

Which of the following would not be a concern of a company that desires to compete in a global manufacturing arena?

The direct-material price variance is:

At the end of the accounting period,most companies close variance accounts to:

The management philosophy known as theory of constraints is most closely tied to:

Which of the following journal entries definitely contains an error?

Which of the following are methods for setting standards?

To improve its manufacturing efficiency,companies should strive toward increasing __________ time as a percentage of processing time + inspection time + waiting time + move time.The blank is:

Which of the following choices correctly notes a characteristic associated with perfection standards and one associated with practical standards?

The direct-labor rate variance is:

An increasingly popular approach that integrates financial and customer performance measures with measures in the areas of internal operations and learning and growth is known as:

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters