Question 1

With a management by exception system:

Accepted Answer

A)  significant unfavourable variances are investigated. 
B)  significant favourable variances are investigated. 
C)  significant variances are investigated. 
D)  all variances are investigated. 
A)  significant unfavourable variances are investigated. 
B)  significant favourable variances are investigated. 
C)  significant variances are investigated. 
D)  all variances are investigated.

Question 2

Utensil City produces a range of frying pans. During May, the company's records revealed the following information about production of the frying pans.
Standards:
Direct materials 3 units @ $2.50 per unit
Direct labour 1 hour @ $14.00 per hour
Manufacturing overhead
Variable $5.00 per direct labour hour
Fixed $6.00 per direct labour hour
Compute the standard unit cost for a frying pan.

Accepted Answer

A)  $32.50 
B)  $26.50 
C)  $27.50 
D)  $21.50 
A)  $32.50 
B)  $26.50 
C)  $27.50 
D)  $21.50

Question 3

How many of these are considered to be benefits of standard costing?
F1S1S1W1F1F1F10F1S1S1W1F1F1F10It makes employees more aware of the impact of costs on operations
F1S1S1W1F1F1F10F1S1S1W1F1F1F10It serves as a target against which to evaluate performance
F1S1S1W1F1F1F10F1S1S1W1F1F1F10It is a cheap way of valuing inventory
F1S1S1W1F1F1F10F1S1S1W1F1F1F10It eliminates the need to compute variances

Accepted Answer

A)  One 
B)  Two 
C)  Three 
D)  Four 
A)  One 
B)  Two 
C)  Three 
D)  Four

Question 4

The performance standard usually considered best in setting standard costs is?

Accepted Answer

A)  Historical 
B)  Attainable 
C)  Average 
D)  Ideal 
A)  Historical 
B)  Attainable 
C)  Average 
D)  Ideal

Question 5

The biggest problem with allocating indirect expenses to segments is that:

Accepted Answer

A)  allocations can be somewhat arbitrary and the results can vary widely. 
B)  some departments consume more indirect expenses. 
C)  fixed costs are ignored. 
D)  it is a time-consuming exercise. 
A)  allocations can be somewhat arbitrary and the results can vary widely. 
B)  some departments consume more indirect expenses. 
C)  fixed costs are ignored. 
D)  it is a time-consuming exercise.

With a management by exception system:

The performance standard usually considered best in setting standard costs is?

The biggest problem with allocating indirect expenses to segments is that:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Differential Analysis, Profitability Analysis and Capital Budgeting

Partnerships: Formation, Operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation, Disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters

Exam 13: Performance Evaluation for Managers

With a management by exception system:

The performance standard usually considered best in setting standard costs is?

The biggest problem with allocating indirect expenses to segments is that:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Differential Analysis, Profitability Analysis and Capital Budgeting

Partnerships: Formation, Operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation, Disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters