Question 1

Identifying the reasons for variances is usually a quick and easy process.

Accepted Answer

A) True 
 B)False

Question 2

Rewarding employees in one production department for meeting or exceeding standard cost benchmarks can create new sets of problems for organizations. Which of the following is not one of them?

Accepted Answer

A) An unfavourable efficiency variance because of rework needed on work from another department 
B) Variances in another production department 
C) Unmotivated employees in that production department 
D) Poor quality finished goods 
A) An unfavourable efficiency variance because of rework needed on work from another department 
B) Variances in another production department 
C) Unmotivated employees in that production department 
D) Poor quality finished goods

Question 3

Which of the following statements regarding tradeoffs among variances is true?

Accepted Answer

A) Managers generally do not need to consider tradeoffs in variance analysis 
B) Managers may sometimes make tradeoffs between favourable and unfavourable variances 
C) Unfavourable direct material price variances often lead to unfavourable direct labour efficiency variances 
D) Favourable direct material price variances often lead to favourable direct material efficiency variances 
A) Managers generally do not need to consider tradeoffs in variance analysis 
B) Managers may sometimes make tradeoffs between favourable and unfavourable variances 
C) Unfavourable direct material price variances often lead to unfavourable direct labour efficiency variances 
D) Favourable direct material price variances often lead to favourable direct material efficiency variances

Question 4

Match between columns
                        Premises: A change in the government-mandated minimum wage
Unanticipated overtime hours
A change in average worker experience or training
A change in the quality of materials purchased
A new supplier contract
Error in the accounting records
Unreasonable standard
Equipment malfunction
Change in proportion of spoiled materials

Accepted Answer

The Answer of Direct materials price variance and Direct materials is...

Question 5

Paris Perfumery sells two perfumes, L'Amour and Plaisir. The expected sales mix is one bottle of L'Amour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows: L'Amour Plaisir Total
Sales (10,000 units)$600,000 (50,000 units)$400,000 $1,000,000
Variable costs 200,000 230,000 430,000
Contribution Margin $400,000 $170,000 $ 570,000
During the period there was an economic downturn. Sales of L'Amour dropped off, so Paris reduced its price. Actual sales were as follows:
L'Amour Plaisir Total
Sales (7,500 @ $45)$337,500 (36,000 @ $8)$288,000 $625,500
Variable costs 165,000 153,000 318,000
Contribution Margin $172,500 $135,000 $307,500
(Appendix 11A)The contribution margin sales volume variance was:

Accepted Answer

A) $204,500 U 
B) $204,500 F 
C) $147,600 U 
D) $0 
A) $204,500 U 
B) $204,500 F 
C) $147,600 U 
D) $0

Question 6

The variable overhead spending variance is calculated by comparing:

Accepted Answer

A) Actual variable overhead cost incurred and the standard variable overhead rate times the actual amount of allocation base used during the period 
B) Actual variable overhead cost incurred and the fixed overhead cost incurred 
C) Actual price of direct materials and the expected price 
D) Actual direct labour hours used and the expected amount 
A) Actual variable overhead cost incurred and the standard variable overhead rate times the actual amount of allocation base used during the period 
B) Actual variable overhead cost incurred and the fixed overhead cost incurred 
C) Actual price of direct materials and the expected price 
D) Actual direct labour hours used and the expected amount

Identifying the reasons for variances is usually a quick and easy process.

Rewarding employees in one production department for meeting or exceeding standard cost benchmarks can create new sets of problems for organizations. Which of the following is not one of them?

Which of the following statements regarding tradeoffs among variances is true?

The variable overhead spending variance is calculated by comparing:

The Role of Ethical Accounting Information in Management Decision Making

Cost Concepts, Behaviour, and Estimation

Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Job Costing

Process Costing

Activity-Based Costing and Management

Measuring and Assigning Support Department Costs

Joint Product and By-Product Costing

Static and Flexible Budgets

Strategic Investment Decisions

Pricing Decisions

Strategic Management of Costs

Measuring and Assigning Costs for Income Statements

Performance Evaluation and Compensation

Strategic Performance Measurement

Sustainability Management

Filters

Exam 11: Standard Costs and Variance Analysis

Identifying the reasons for variances is usually a quick and easy process.

Rewarding employees in one production department for meeting or exceeding standard cost benchmarks can create new sets of problems for organizations. Which of the following is not one of them?

Which of the following statements regarding tradeoffs among variances is true?

The variable overhead spending variance is calculated by comparing:

The Role of Ethical Accounting Information in Management Decision Making

Cost Concepts, Behaviour, and Estimation

Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Job Costing

Process Costing

Activity-Based Costing and Management

Measuring and Assigning Support Department Costs

Joint Product and By-Product Costing

Static and Flexible Budgets

Strategic Investment Decisions

Pricing Decisions

Strategic Management of Costs

Measuring and Assigning Costs for Income Statements

Performance Evaluation and Compensation

Strategic Performance Measurement

Sustainability Management

Filters