Question 1

In general,budget variances should not be used to single out managers for praise or punishment.

Accepted Answer

A) True 
 B)False

Question 2

The best standards to include in a standard cost system are ideal standards.

Accepted Answer

A) True 
 B)False

Question 3

The resources used in the manufacturing process are frequently called:

Accepted Answer

A)  Variances. 
B)  Standards. 
C)  Inputs. 
D)  Outputs. 
A)  Variances. 
B)  Standards. 
C)  Inputs. 
D)  Outputs.

Question 4

In most cases,the production manager should be held accountable for fixed cost volume variances.

Accepted Answer

A) True 
 B)False

Question 5

What is the result when the actual rate paid for labor is less than the standard rate?

Accepted Answer

A)  A favorable labor price variance 
B)  An unfavorable labor price variance 
C)  A favorable labor usage variance 
D)  An unfavorable labor usage variance 
A)  A favorable labor price variance 
B)  An unfavorable labor price variance 
C)  A favorable labor usage variance 
D)  An unfavorable labor usage variance

Question 6

When would a cost variance be listed as unfavorable?

Accepted Answer

A)  When actual costs are less than budgeted costs 
B)  When actual costs exceed budgeted costs 
C)  When actual costs are equal to budgeted costs 
D)  When actual sales are less than budgeted sales 
A)  When actual costs are less than budgeted costs 
B)  When actual costs exceed budgeted costs 
C)  When actual costs are equal to budgeted costs 
D)  When actual sales are less than budgeted sales

Question 7

The Ferguson Company estimated that October sales would be 100,000 units with an average selling price of $6.00.Actual sales for October were 105,000 units and average selling price was $5.95. The sales volume variance was:

Accepted Answer

A)  $30,000 favorable. 
B)  $30,000 unfavorable. 
C)  $29,750 favorable. 
D)  $29,750 unfavorable. 
A)  $30,000 favorable. 
B)  $30,000 unfavorable. 
C)  $29,750 favorable. 
D)  $29,750 unfavorable.

Question 8

Under all circumstances,unfavorable variances are bad;favorable variances are good.

Accepted Answer

A) True 
 B)False

Question 9

A static budget is one that shows estimated revenues and costs at multiple activity levels.

Accepted Answer

A) True 
 B)False

Question 10

Abbot Company spent less than expected for materials and more than expected for labor.Select the incorrect statement from the following.

Accepted Answer

A)  You can always expect unfavorable labor variances if you have favorable material variances. 
B)  In order to facilitate cost control,it will be necessary to analyze the price and quantity of each resource used in production. 
C)  It cannot be determined from the information provided whether employees were paid higher wages or if they worked more hours. 
D)  It cannot be determined from the information provided whether the company paid a lower purchase price for materials or if workers used less materials. 
A)  You can always expect unfavorable labor variances if you have favorable material variances. 
B)  In order to facilitate cost control,it will be necessary to analyze the price and quantity of each resource used in production. 
C)  It cannot be determined from the information provided whether employees were paid higher wages or if they worked more hours. 
D)  It cannot be determined from the information provided whether the company paid a lower purchase price for materials or if workers used less materials.

In general,budget variances should not be used to single out managers for praise or punishment.

The best standards to include in a standard cost system are ideal standards.

The resources used in the manufacturing process are frequently called:

In most cases,the production manager should be held accountable for fixed cost volume variances.

What is the result when the actual rate paid for labor is less than the standard rate?

When would a cost variance be listed as unfavorable?

The Ferguson Company estimated that October sales would be 100,000 units with an average selling price of $6.00.Actual sales for October were 105,000 units and average selling price was $5.95. The sales volume variance was:

Under all circumstances,unfavorable variances are bad;favorable variances are good.

A static budget is one that shows estimated revenues and costs at multiple activity levels.

Abbot Company spent less than expected for materials and more than expected for labor.Select the incorrect statement from the following.

Management Accounting and Corporate Governance

Cost Behavior, Operating Leverage, and Profitability Analysis

Analysis of Cost,Volume,and Pricing to Increase Profitability

Cost Accumulation,Tracing,and Allocation

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Responsibility Accounting

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Job-Order, Process, and Hybrid Costing Systems

Financial Statement Analysis

Statement of Cash Flows

Filters

Exam 8: Performance Evaluation

In general,budget variances should not be used to single out managers for praise or punishment.

The best standards to include in a standard cost system are ideal standards.

The resources used in the manufacturing process are frequently called:

In most cases,the production manager should be held accountable for fixed cost volume variances.

What is the result when the actual rate paid for labor is less than the standard rate?

When would a cost variance be listed as unfavorable?

The Ferguson Company estimated that October sales would be 100,000 units with an average selling price of $6.00.Actual sales for October were 105,000 units and average selling price was $5.95. The sales volume variance was:

Under all circumstances,unfavorable variances are bad;favorable variances are good.

A static budget is one that shows estimated revenues and costs at multiple activity levels.

Abbot Company spent less than expected for materials and more than expected for labor.Select the incorrect statement from the following.

Management Accounting and Corporate Governance

Cost Behavior, Operating Leverage, and Profitability Analysis

Analysis of Cost,Volume,and Pricing to Increase Profitability

Cost Accumulation,Tracing,and Allocation

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Responsibility Accounting

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Job-Order, Process, and Hybrid Costing Systems

Financial Statement Analysis

Statement of Cash Flows

Filters