final exam Flashcards
(20 cards)
The condition that demands maximum efficiency and can be achieved only if everything operates perfectly is called?
A. Ideal standards
B. Currently at attainable standards
C. Personnel standards
D. Budget standard
A. Ideal standards
variances indicate
A. the cause of the variance
B. When the variance should be investigated
C. Who is responsible for the variance
D. That actual performance is not going according to plan.
D. The actual performance is not going according to plan
The unit standard cost is the
A. product of the standard price times the standard quantity for each unit
B. Actual cost for a standard product.
C. Amount of actual cost to produce a unit in a standardized process.
D. Price standard for each unit.
A. Product of the standard price times the standard quantity for each unit.
in setting price standards, the purchasing manager must consider
A. Freight
B. Quality.
C. Discounts
D. All of these choices are correct.
D . All of these choices are correct.
Price standards are the responsibility of
A. Accounting.
B. Personnel
C. Purchasing
D. All of these choices are correct.
D. All of these choices are correct.
which of the following statements regarding currently attainable standard is true?
A. Currently at attainable standards can be achieved under efficient operating conditions
B. Currently attainable standards demand maximum efficiency
C. Currently attainable standards demand the maximum sales price
D. Currently at attainable standards do not allow for normal breakdowns, interruptions, and less than perfect skill.
A. Currently attainable standards can be achieved under efficient operating conditions.
which of the following statements about Kaizen standards is NOT true?
A. Kaizen standards are the standards used in traditional costing systems
B. Kaizen and standards are the standards used for continuous improvement
C. Kaizen standards are constantly changing
D. Kaizen standards are a currently attainable standard that reflects planned improvement
A. kaizen standards are the standard use traditional costing systems
Price standards
A. Specify how much of the quantity of input should be used for the actual price
B. Specify how much of the quantity of input should be used for the standard price
C. are standard price multiplied by standard quantity
D. Specify how much should be paid for the quantity of input to be used
D. Specify how much should be paid for the quantity of input to be used
The standard cost sheet includes all of the following EXCEPT THE
A. Standard quantity allowed for actual production
B. Standard cost per unit
C. Standard quantity per unit
D. Standard price.
A. Standard quantity allowed for actual product production.
Standard costing
a. Not used in unit costing.
b. Establishes price and quantity standards for inputs.
c. Provided journal entry support.
d. None of these choices are correct.
b. Establishes pricing and quantity standards for inputs.
The usage variance focus on the difference between
a. Actual quantity used and standard quantity allowed for actual production.
b. The actual quantity used, the standard quantity allowed for actual production, the actual cost of inputs, and the standard cost of inputs
c. Actual quantity used in standard quantity allowed for budgeted production.
d. Actual cost of inputs and standard cost of inputs.
a. Actual quantity used in standard quantity allowed for actual production.
Price/rate variances focus on the differences between actual and
a. Standard unit prices of an input multiplied by the budgeted quantity of inputs.
b. Standard unit prices of an input multiplied by the actual quantity of inputs.
c. Standard inputs multiplied by actual prices.
d. Standard inputs multiplied by standard prices.
b. Standard unit prices of an input multiplied by the actual quantity of inputs.
As a general rule, an investigation of a variant should be undertaken only if the
a. Variance is negative.
b. Variance is isolated.
c. Variance is positive
d. Anticipated benefits are greater than the expected cost.
d. Anticipate the benefits are greater than the expected cost.
The standard plus the allowable deviation is called the
a. upper control limit.
b. Total budget variance.
c. Standard quantity.
d. Standard price.
a. Upper control limit.
A materials price variance would not be caused by
a. Requiring laborers to work overtime.
b. Ordering from the wrong supplier.
c. Ordering the wrong quality of materials.
d. Not taking a quantity discount.
a. Requiring laborers to work overtime.
which of the following factors would cause an unfavorable materials quantity variance?
a. Using more highly skilled workers.
b. Receiving discount for purchasing larger than normal quantities.
c. using poorly maintained machinery
d. Using higher quality materials.
c. Using poorly maintained machinery.
which of the following factors would cause an unfavorable labor rate variance?
a. Using higher quality materials
b. Using more highly skilled workers.
c. Using low efficiency workers.
d. Using more unskilled workers.
b. Using more highly skilled workers.
using more highly skilled direct laborers might affect, which of the following variances?
a. Direct materials usage variance.
b. Variable manufacturing overhead efficiency variance.
c. Direct labor efficiency variance.
d. All of these choices are correct.
c. Direct labor efficiency variance.
A 5% wage increase for all factor employees would affect which of the following variances?
a. Direct labor rate variance.
b. Variable manufacturing overhead efficiency variance.
c. Direct labor efficiency variance.
d. Direct materials price variance.
a. Direct labor rate variance.
which of the following statements about the variable overhead spending variance is true?
a. The variable overhead variance is calculated by deducting actual variable overhead from standard variable overhead.
b. The variable overhead spending variance is calculated by deducting actual direct labor hours used from standard direct labor hours that should’ve been used.
c. The variable overhead spinning variance measures the change in variable overhead consumption that occurs because of efficient (or inefficient) use of direct labor
d. The variable overhead spinning variance measures that aggregate effective differences in the actual variable overhead rate and the standard variable overhead rate.
d. The variable overhead variance measures the aggregate effective differences in the actual variable overhead rate and the standard variable overhead rate.
