Question 1

The mix variance explains the trade-offs between the quantity used of the different inputs by comparing the actual mix of the inputs used to the:

Accepted Answer

A)  Standard mix for the inputs 
B)  Actual mix for the inputs 
C)  Standard mix for the outputs 
D)  Actual mix for the outputs 
A)  Standard mix for the inputs 
B)  Actual mix for the inputs 
C)  Standard mix for the outputs 
D)  Actual mix for the outputs A

Question 2

The market size variance is also known as the industry volume variance.

Accepted Answer

A) True 
 B)False  True

Question 3

Revenue variances are caused by all but the following:

Accepted Answer

A)  Change in demand 
B)  Change in sales price 
C)  Discounting practices 
D)  Change in warranty program 
A)  Change in demand 
B)  Change in sales price 
C)  Discounting practices 
D)  Change in warranty program D

Question 4

The contribution margin analysis indicates the effects of changes in contribution margins, given the level of budgeted sales.

Accepted Answer

A) True 
 B)False

Question 5

For organizations that sell multiple products, contribution margin and sales mix variances are often useful for decision making.

Accepted Answer

A) True 
 B)False

Question 6

Direct materials efficiency variance is further analyzed to understand the fluctuations in the interchangeable input resources into:

Accepted Answer

A)  Price and efficiency variances 
B)  Mix and yield variances 
C)  Mix and price variances 
D)  Efficiency and yield variances 
A)  Price and efficiency variances 
B)  Mix and yield variances 
C)  Mix and price variances 
D)  Efficiency and yield variances

Question 7

An analysis of the total contribution margin is often useful, especially when a company's products are substitutes for one another.

Accepted Answer

A) True 
 B)False

Question 8

The mix variance is favourable when the actual percentage used for an input resource is:

Accepted Answer

A)  Less than the standard percentage for that input 
B)  More than the standard percentage for that input 
C)  Less than the actual amount for that input 
D)  More than the standard amount for that input 
A)  Less than the standard percentage for that input 
B)  More than the standard percentage for that input 
C)  Less than the actual amount for that input 
D)  More than the standard amount for that input

Question 9

The contribution sales mix variance is favourable when:

Accepted Answer

A)  Sales mix shifts toward products with a higher actual contribution margin 
B)  Sales mix shifts toward products with a higher standard contribution margin 
C)  Sales mix shifts from products with a higher standard contribution margin 
D)  Sales mix shifts toward products with a lower standard contribution margin 
A)  Sales mix shifts toward products with a higher actual contribution margin 
B)  Sales mix shifts toward products with a higher standard contribution margin 
C)  Sales mix shifts from products with a higher standard contribution margin 
D)  Sales mix shifts toward products with a lower standard contribution margin

Question 10

The mix variance is favourable when actual percentage used for an input resource is more than the standard percentage for that input.

Accepted Answer

A) True 
 B)False

Question 11

Productivity is the ratio of the inputs used to the outputs achieved.

Accepted Answer

A) True 
 B)False

Question 12

The revenue sales quantity variance is calculated as (actual volume sold - standard volume sold) x actual price.

Accepted Answer

A) True 
 B)False

Question 13

Two approaches to a total productivity measure are possible and are:

Accepted Answer

A)  Production and total factor 
B)  Portfolio and production 
C)  Partial productivity and total factor 
D)  Portfolio and total factor 
A)  Production and total factor 
B)  Portfolio and production 
C)  Partial productivity and total factor 
D)  Portfolio and total factor

Question 14

Technical efficiency occurs when a business produces the maximum quantity of outputs for the:

Accepted Answer

A)  Minimum number of machine hours 
B)  Minimum quantity of inputs 
C)  Maximum number of machine hours 
D)  Maximum quantity of inputs 
A)  Minimum number of machine hours 
B)  Minimum quantity of inputs 
C)  Maximum number of machine hours 
D)  Maximum quantity of inputs

Question 15

The contribution margin sales volume variance calculates:

Accepted Answer

A)  The effects of changes in contribution margins, given the actual level of sales 
B)  The effects of changes in units sold, given the standard contribution margins 
C)  The effects of changes in actual fixed costs, given the actual level of sales 
D)  The effects of changes in standard variable costs, given the actual level of sales 
A)  The effects of changes in contribution margins, given the actual level of sales 
B)  The effects of changes in units sold, given the standard contribution margins 
C)  The effects of changes in actual fixed costs, given the actual level of sales 
D)  The effects of changes in standard variable costs, given the actual level of sales

Question 16

The yield variance focuses on the difference between the standard amount of inputs required to make the actual output and:

Accepted Answer

A)  Actual amount of inputs used to make the standard output. 
B)  Standard amount of inputs used to make the standard output. 
C)  Actual amount of inputs used to make the actual output. 
D)  Standard amount of inputs used to make the actual output. 
A)  Actual amount of inputs used to make the standard output. 
B)  Standard amount of inputs used to make the standard output. 
C)  Actual amount of inputs used to make the actual output. 
D)  Standard amount of inputs used to make the actual output.

Question 17

All of the following are profit related variances except:

Accepted Answer

A)  Sales price variance 
B)  Fixed overhead production volume variance 
C)  Contribution margin variance 
D)  Revenue sales quantity variance 
A)  Sales price variance 
B)  Fixed overhead production volume variance 
C)  Contribution margin variance 
D)  Revenue sales quantity variance

Question 18

Contribution margin sales volume variance can be further subdivided into:

Accepted Answer

A)  Contribution margin budget variance and contribution margin variance 
B)  Contribution margin variance and contribution margin sales mix variance 
C)  Contribution margin sales quantity variance and contribution margin sales mix variance 
D)  Contribution margin sales quantity variance and contribution margin budget variance 
A)  Contribution margin budget variance and contribution margin variance 
B)  Contribution margin variance and contribution margin sales mix variance 
C)  Contribution margin sales quantity variance and contribution margin sales mix variance 
D)  Contribution margin sales quantity variance and contribution margin budget variance

Question 19

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:   The revenue sales quantity variance for L'Amour was:

Accepted Answer

A)  $150,000 U 
B)  $150,000 F 
C)  $262,500 U 
D)  $112,000 U 
A)  $150,000 U 
B)  $150,000 F 
C)  $262,500 U 
D)  $112,000 U

Question 20

Allocative efficiency considers the costs of the input mix and the:
A) Price paid by the company for the output.
B) Price paid by the consumer for the input.
C) Price paid by the consumer for the input.
D) Price paid by the consumer for the output.

Accepted Answer

The answer of Allocative efficiency considers the costs of the...

The mix variance explains the trade-offs between the quantity used of the different inputs by comparing the actual mix of the inputs used to the:

The market size variance is also known as the industry volume variance.

Revenue variances are caused by all but the following:

The contribution margin analysis indicates the effects of changes in contribution margins, given the level of budgeted sales.

For organizations that sell multiple products, contribution margin and sales mix variances are often useful for decision making.

Direct materials efficiency variance is further analyzed to understand the fluctuations in the interchangeable input resources into:

An analysis of the total contribution margin is often useful, especially when a company's products are substitutes for one another.

The mix variance is favourable when the actual percentage used for an input resource is:

The contribution sales mix variance is favourable when:

The mix variance is favourable when actual percentage used for an input resource is more than the standard percentage for that input.

Productivity is the ratio of the inputs used to the outputs achieved.

The revenue sales quantity variance is calculated as (actual volume sold - standard volume sold) x actual price.

Two approaches to a total productivity measure are possible and are:

Technical efficiency occurs when a business produces the maximum quantity of outputs for the:

The contribution margin sales volume variance calculates:

The yield variance focuses on the difference between the standard amount of inputs required to make the actual output and:

All of the following are profit related variances except:

Contribution margin sales volume variance can be further subdivided into:

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: The revenue sales quantity variance for L'Amour was:

Allocative efficiency considers the costs of the input mix and the: A) Price paid by the company for the output. B) Price paid by the consumer for the input. C) Price paid by the consumer for the input. D) Price paid by the consumer for the output.

The Role of Accounting Information in Ethical 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

Standard Costs and Variance Analysis

Pricing Decisions

Strategic Management of Costs

Measuring and Assigning Costs for Income Statements

Performance Evaluation and Compensation

Filters

Exam 12: Strategic Investment Decisions

The mix variance explains the trade-offs between the quantity used of the different inputs by comparing the actual mix of the inputs used to the:

The market size variance is also known as the industry volume variance.

Revenue variances are caused by all but the following:

The contribution margin analysis indicates the effects of changes in contribution margins, given the level of budgeted sales.

For organizations that sell multiple products, contribution margin and sales mix variances are often useful for decision making.

Direct materials efficiency variance is further analyzed to understand the fluctuations in the interchangeable input resources into:

An analysis of the total contribution margin is often useful, especially when a company's products are substitutes for one another.

The mix variance is favourable when the actual percentage used for an input resource is:

The contribution sales mix variance is favourable when:

The mix variance is favourable when actual percentage used for an input resource is more than the standard percentage for that input.

Productivity is the ratio of the inputs used to the outputs achieved.

The revenue sales quantity variance is calculated as (actual volume sold - standard volume sold) x actual price.

Two approaches to a total productivity measure are possible and are:

Technical efficiency occurs when a business produces the maximum quantity of outputs for the:

The contribution margin sales volume variance calculates:

The yield variance focuses on the difference between the standard amount of inputs required to make the actual output and:

All of the following are profit related variances except:

Contribution margin sales volume variance can be further subdivided into:

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: The revenue sales quantity variance for L'Amour was:

Allocative efficiency considers the costs of the input mix and the: A) Price paid by the company for the output. B) Price paid by the consumer for the input. C) Price paid by the consumer for the input. D) Price paid by the consumer for the output.

The Role of Accounting Information in Ethical 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

Standard Costs and Variance Analysis

Pricing Decisions

Strategic Management of Costs

Measuring and Assigning Costs for Income Statements

Performance Evaluation and Compensation

Filters