Question 1

The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job.

Accepted Answer

A) True 
 B)False

Question 2

Answer the following questions using the information below:
These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity.
-The best label for the formula (AP - BP)AQ is the:

Accepted Answer

A) efficiency variance 
B) price variance 
C) total flexible-budget variance 
D) spending variance 
A) efficiency variance 
B) price variance 
C) total flexible-budget variance 
D) spending variance

Question 3

Answer the following questions using the information below:
The actual information pertains to the month of September. As part of the budgeting process, Kriger Fencing Company developed the following static budget for September. Kriger is in the process of preparing the flexible budget and understanding the results.
        
-The flexible-budget variance for variable costs is:

Accepted Answer

A) $16,000 unfavorable 
B) $60,000 unfavorable 
C) $16,000 favorable 
D) $60,000 favorable 
A) $16,000 unfavorable 
B) $60,000 unfavorable 
C) $16,000 favorable 
D) $60,000 favorable

Question 4

Answer the following questions using the information below:
These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity.
-The best label for the formula [(AP)(AQ)- (BP)(BQ)] is the:

Accepted Answer

A) efficiency variance. 
B) price variance 
C) total flexible-budget variance 
D) spending variance 
A) efficiency variance. 
B) price variance 
C) total flexible-budget variance 
D) spending variance

Question 5

Answer the following questions using the information below:
The actual information pertains to the month of September. As part of the budgeting process, Kriger Fencing Company developed the following static budget for September. Kriger is in the process of preparing the flexible budget and understanding the results.
        
-The flexible budget will report ________ for variable costs.

Accepted Answer

A) $256,000 
B) $300,000 
C) $240,000 
D) $320,000 
A) $256,000 
B) $300,000 
C) $240,000 
D) $320,000

Question 6

Waddell Productions makes separate journal entries for all cost accounting-related activities. It uses a standard cost system for all manufacturing items. For the month of June, the following activities have taken place:
   Required:
Record the necessary journal entries to close the accounts for the month.

Accepted Answer

The answer of Waddell Productions makes separate journal entries for...

Question 7

Answer the following questions using the information below:
These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity.
-The best label for the formula [(AP)(AQ)- (BP)(AQ)] is the:

Accepted Answer

A) efficiency variance 
B) price variance 
C) total flexible-budget variance 
D) spending variance 
A) efficiency variance 
B) price variance 
C) total flexible-budget variance 
D) spending variance

Question 8

The flexible-budget variance for direct cost inputs can be further subdivided into a:

Accepted Answer

A) static-budget variance and a sales-volume variance 
B) sales-volume variance and an efficiency variance 
C) price variance and an efficiency variance 
D) static-budget variance and a price variance 
A) static-budget variance and a sales-volume variance 
B) sales-volume variance and an efficiency variance 
C) price variance and an efficiency variance 
D) static-budget variance and a price variance

Question 9

If budgets contain slack, cost variances will tend to be favorable.

Accepted Answer

A) True 
 B)False

Question 10

Management by exception is the practice of concentrating on:

Accepted Answer

A) the master budget 
B) areas not operating as anticipated 
C) favorable variances 
D) unfavorable variances 
A) the master budget 
B) areas not operating as anticipated 
C) favorable variances 
D) unfavorable variances

Question 11

To prepare budgets based on actual data from past periods is preferred since past inefficiencies are EXCLUDED.

Accepted Answer

A) True 
 B)False

Question 12

The following data for the Alma Company pertain to the production of 1,000 urns during August.
         Required:
a. What is standard direct material amount per urn?
b. What is the direct material price variance?
c. What is the total actual cost of direct manufacturing labor?
d. What is the labor price variance for direct manufacturing labor?

Accepted Answer

The answer of The following data for the Alma Company...

Question 13

Variance analysis should be used:

Accepted Answer

A) to understand why variances arise 
B) as the sole source of information for performance evaluation 
C) to punish employees that do not meet standards 
D) to encourage employees to focus on meeting standards 
A) to understand why variances arise 
B) as the sole source of information for performance evaluation 
C) to punish employees that do not meet standards 
D) to encourage employees to focus on meeting standards

Question 14

Benchmarking is the continuous process of measuring products, services, and activities against the best possible levels of performance, either inside or outside the organization.

Accepted Answer

A) True 
 B)False

Question 15

A flexible budget:

Accepted Answer

A) is another name for management by exception 
B) is developed at the end of the period 
C) is based on the budgeted level of output 
D) provides favorable operating results 
A) is another name for management by exception 
B) is developed at the end of the period 
C) is based on the budgeted level of output 
D) provides favorable operating results

Question 16

From the perspective of control, the direct materials efficiency variance should be isolated at the time of:

Accepted Answer

A) purchase 
B) use 
C) completion of the entire product 
D) sale of the product 
A) purchase 
B) use 
C) completion of the entire product 
D) sale of the product

Question 17

The following data for the Lewgrow Garden Supplies Company pertains to the production of 2,500 garden spades during March. The spade consists of a wooden handle and a metal forged tool that comes in contact with the ground.
         Required:
a. What is the standard direct material amount per garden spade?
b. What is the standard cost allowed for all units produced?
c. What is the total direct materials flexible-budget variance?
d. What is the direct material flexible-budget price variance?
e. What is the total actual cost of direct manufacturing labor?
f. What is the labor price variance for direct manufacturing labor?

Accepted Answer

The answer of The following data for the Lewgrow Garden...

Question 18

Ideal standards:

Accepted Answer

A) assume peak operating conditions 
B) allow for normal machine breakdowns 
C) greatly improve employee motivation and performance 
D) All of these answers are correct.. 
A) assume peak operating conditions 
B) allow for normal machine breakdowns 
C) greatly improve employee motivation and performance 
D) All of these answers are correct..

Question 19

What is benchmarking, and how is it useful to a company?

Accepted Answer

Benchmarking is the continuous process o

Question 20

If manufacturing machines are breaking down more than expected, this will contribute to a(n):

Accepted Answer

A) favorable direct manufacturing labor price variance 
B) unfavorable direct manufacturing labor price variance 
C) favorable direct manufacturing labor efficiency variance 
D) unfavorable direct manufacturing labor efficiency variance 
A) favorable direct manufacturing labor price variance 
B) unfavorable direct manufacturing labor price variance 
C) favorable direct manufacturing labor efficiency variance 
D) unfavorable direct manufacturing labor efficiency variance

The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job.

Answer the following questions using the information below: These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity. -The best label for the formula (AP - BP)AQ is the:

Answer the following questions using the information below: These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity. -The best label for the formula [(AP)(AQ)- (BP)(BQ)] is the:

Answer the following questions using the information below: These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity. -The best label for the formula [(AP)(AQ)- (BP)(AQ)] is the:

The flexible-budget variance for direct cost inputs can be further subdivided into a:

If budgets contain slack, cost variances will tend to be favorable.

Management by exception is the practice of concentrating on:

To prepare budgets based on actual data from past periods is preferred since past inefficiencies are EXCLUDED.

Variance analysis should be used:

Benchmarking is the continuous process of measuring products, services, and activities against the best possible levels of performance, either inside or outside the organization.

A flexible budget:

From the perspective of control, the direct materials efficiency variance should be isolated at the time of:

Ideal standards:

What is benchmarking, and how is it useful to a company?

If manufacturing machines are breaking down more than expected, this will contribute to a(n):

The Accountants Role in the Organization

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality, Time, and the Theory of Constraints

Inventory Management, Just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

Filters

Exam 7: Flexible Budgets, Direct-Cost Variances, and Management Control

The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job.

Answer the following questions using the information below: These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity. -The best label for the formula (AP - BP)AQ is the:

Answer the following questions using the information below: These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity. -The best label for the formula [(AP)(AQ)- (BP)(BQ)] is the:

Answer the following questions using the information below: These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity. -The best label for the formula [(AP)(AQ)- (BP)(AQ)] is the:

The flexible-budget variance for direct cost inputs can be further subdivided into a:

If budgets contain slack, cost variances will tend to be favorable.

Management by exception is the practice of concentrating on:

To prepare budgets based on actual data from past periods is preferred since past inefficiencies are EXCLUDED.

Variance analysis should be used:

Benchmarking is the continuous process of measuring products, services, and activities against the best possible levels of performance, either inside or outside the organization.

A flexible budget:

From the perspective of control, the direct materials efficiency variance should be isolated at the time of:

Ideal standards:

What is benchmarking, and how is it useful to a company?

If manufacturing machines are breaking down more than expected, this will contribute to a(n):

The Accountants Role in the Organization

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality, Time, and the Theory of Constraints

Inventory Management, Just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

Filters