Question 1

All of the following are advantages of standard costs except they

Accepted Answer

A) facilitate management planning. 
B) are useful in setting selling prices. 
C) simplify costing in inventories. 
D) increase net income. 
A) facilitate management planning. 
B) are useful in setting selling prices. 
C) simplify costing in inventories. 
D) increase net income.

Question 2

Standard cost cards are the subsidiary ledger for the Work in Process account in a standard cost system.

Accepted Answer

A) True 
 B)False

Question 3

The balanced scorecard approach

Accepted Answer

A) uses only financial measures to evaluate performance. 
B) uses rather vague, open statements when setting objectives in order to allow managers and employees flexibility. 
C) normally sets the financial objectives first, and then sets the objectives in the other perspectives to accomplish the financial objectives. 
D) evaluates performance using about 10 different perspectives in order to effectively incorporate all areas of the organization. 
A) uses only financial measures to evaluate performance. 
B) uses rather vague, open statements when setting objectives in order to allow managers and employees flexibility. 
C) normally sets the financial objectives first, and then sets the objectives in the other perspectives to accomplish the financial objectives. 
D) evaluates performance using about 10 different perspectives in order to effectively incorporate all areas of the organization.

Question 4

A materials quantity variance is calculated as the difference between the standard direct materials price and the actual direct materials price multiplied by the actual quantity of direct materials used.

Accepted Answer

A) True 
 B)False

Question 5

What is a standard cost?

Accepted Answer

A) The total number of units times the budgeted amount expected 
B) Any amount that appears on a budget 
C) The total amount that appears on the budget for product costs 
D) The amount management thinks should be incurred to produce a good or service 
A) The total number of units times the budgeted amount expected 
B) Any amount that appears on a budget 
C) The total amount that appears on the budget for product costs 
D) The amount management thinks should be incurred to produce a good or service

Question 6

Which of the following is true?

Accepted Answer

A) The form, content, and frequency of variance reports vary considerably among companies. 
B) The form, content, and frequency of variance reports do not vary among companies. 
C) The form and content of variance reports vary considerably among companies, but the frequency is always weekly. 
D) The form and content of variance reports are consistent among companies, but the frequency varies. 
A) The form, content, and frequency of variance reports vary considerably among companies. 
B) The form, content, and frequency of variance reports do not vary among companies. 
C) The form and content of variance reports vary considerably among companies, but the frequency is always weekly. 
D) The form and content of variance reports are consistent among companies, but the frequency varies.

Question 7

The direct materials price standard should include an amount for all of the following except

Accepted Answer

A) receiving costs. 
B) storing costs. 
C) handling costs. 
D) normal spoilage costs. 
A) receiving costs. 
B) storing costs. 
C) handling costs. 
D) normal spoilage costs.

Question 8

A debit to the Overhead Volume Variance account indicates that the standard hours allowed for the output produced was greater than the standard hours at normal capacity.

Accepted Answer

A) True 
 B)False

Question 9

If a company issues raw materials to production at a cost of $18,900 when the standard cost is $18,300, it will

Accepted Answer

A) debit Materials Price Variance for $600. 
B) credit Materials Price Variance for $600. 
C) debit Materials Quantity Variance for $600. 
D) credit Material Quantity Variance for $600. 
A) debit Materials Price Variance for $600. 
B) credit Materials Price Variance for $600. 
C) debit Materials Quantity Variance for $600. 
D) credit Material Quantity Variance for $600.

All of the following are advantages of standard costs except they

Standard cost cards are the subsidiary ledger for the Work in Process account in a standard cost system.

The balanced scorecard approach

A materials quantity variance is calculated as the difference between the standard direct materials price and the actual direct materials price multiplied by the actual quantity of direct materials used.

What is a standard cost?

Which of the following is true?

The direct materials price standard should include an amount for all of the following except

A debit to the Overhead Volume Variance account indicates that the standard hours allowed for the output produced was greater than the standard hours at normal capacity.

If a company issues raw materials to production at a cost of $18,900 when the standard cost is $18,300, it will

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money

Filters

Exam 11: Reporting and Analyzing Stockholders Equity

All of the following are advantages of standard costs except they

Standard cost cards are the subsidiary ledger for the Work in Process account in a standard cost system.

The balanced scorecard approach

A materials quantity variance is calculated as the difference between the standard direct materials price and the actual direct materials price multiplied by the actual quantity of direct materials used.

What is a standard cost?

Which of the following is true?

The direct materials price standard should include an amount for all of the following except

A debit to the Overhead Volume Variance account indicates that the standard hours allowed for the output produced was greater than the standard hours at normal capacity.

If a company issues raw materials to production at a cost of $18,900 when the standard cost is $18,300, it will

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money

Filters