Question 1

Price variances show how changes in usage of raw materials and labor affect a company's profits.

Accepted Answer

A) True 
 B)False

Question 2

Manufacturing companies that use standard costs do NOT need to compute inventory cost based on LIFO, FIFO, or weighted average.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following BEST describes standard costs?

Accepted Answer

A)  Costs used as a budget for a single unit of product 
B)  Costs incurred to produce the standard model of a product 
C)  Costs based on the average of current market values 
D)  Costs used to compare with competitors' prices 
A)  Costs used as a budget for a single unit of product 
B)  Costs incurred to produce the standard model of a product 
C)  Costs based on the average of current market values 
D)  Costs used to compare with competitors' prices

Question 4

A variance is the difference between an actual amount and a budgeted amount.

Accepted Answer

A) True 
 B)False

Question 5

Western Outfitters Mountain Sports projected 2011 sales of 75,000 units at a unit sale price of $12.00. Actual 2011 sales were 72,000 units at $14.00 per unit. Variable costs were budgeted at $4.00 per unit; actual amount was $4.75 per unit. Budgeted fixed costs totaled $375,000 while actual fixed costs amounted to $400,000. What is the flexible budget variance for variable expenses?

Accepted Answer

A)  $12,000 favorable 
B)  $54,000 unfavorable 
C)  $54,000 favorable 
D)  $25,000 favorable 
A)  $12,000 favorable 
B)  $54,000 unfavorable 
C)  $54,000 favorable 
D)  $25,000 favorable

Price variances show how changes in usage of raw materials and labor affect a company's profits.

Manufacturing companies that use standard costs do NOT need to compute inventory cost based on LIFO, FIFO, or weighted average.

Which of the following BEST describes standard costs?

A variance is the difference between an actual amount and a budgeted amount.

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Management Accounting

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Performance Evaluation and the Balanced Scorecard

Filters

Exam 23: Flexible Budgets and Standard Costs

Price variances show how changes in usage of raw materials and labor affect a company's profits.

Manufacturing companies that use standard costs do NOT need to compute inventory cost based on LIFO, FIFO, or weighted average.

Which of the following BEST describes standard costs?

A variance is the difference between an actual amount and a budgeted amount.

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Management Accounting

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Performance Evaluation and the Balanced Scorecard

Filters