Ch 11 Multiple Choice – Flashcards

A(n) ________ is a carefully predetermined cost that is usually expressed on a per unit basis.

The type of standard that provides allowances for normal amounts of waste and inefficiency in the production process is referred to as a(n)

As managers use less and different types of direct materials, which of the following standards do managers focus on to enhance sustainability in the workplace?

If the purchasing manager purchased a greater quantity of raw materials than budgeted, but paid the Standard Price (SP), which variance may be affected?

Which variance is directly impacted if a worker drops the raw material during production and the raw material must be discarded?

A company uses sugar in producing its product. If the price of sugar doubles, which variance is directly impacted?

A company's purchasing department negotiates all of the purchasing contracts for raw materials. Which variance is most useful in assessing the performance of the purchasing department?

Which of the following situations may lead to a favorable direct materials price variance?

The direct materials price variance is calculated as

The Standard Quantity (SQ) of direct materials is calculated as

A favorable direct materials quantity variance indicates which of the following?

A favorable direct materials price variance indicates which of the following?

The direct materials flexible budget variance can be divided into which of the following two variances?

A favorable direct materials price variance and an unfavorable direct materials quantity variance might indicate which of the following?

The ________ tells managers how much of the overall variance id due to paying a higher or lower price than expected for the quantity of materials it purchased.

The ________ "tells managers how much of the total direct materials variance is due to using more or less materials than anticipated the by standards."

The ________ "shows how well management has controlled overhead costs."

Which variance is directly impacted if the employees who build the product go on strike and temporary workers who are slower and not as skilled are hired?

How is the direct labor rate variance calculated?

How is the direct labor efficiency variance calculated?

The direct labor variance can be divided into two variances

A favorable direct labor efficiency variance might indicate that

The unemployment rate is high in the city in which a company has a factory. The company finds that they are able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago. Which of the following variances may be directly impacted?

A company receives an unusually high number of orders in a month. To produce all of the orders within the scheduled dates of delivery, the company pays employees an extra $8 per hour for every hour of overtime the employees work. Which of the following variances may be directly impacted?

An unfavorable direct labor rate variance indicates which of the following?

A favorable direct labor efficiency variance and an unfavorable direct labor rate variance might indicate which of the following?

The ________ variance "measures how well the business keeps prices of direct labor inputs within standards."

The ________ variance "measures whether the quantity of direct labor used to make the actual number of outputs is within the standard allowed for that number of outputs."

All of the following are advantages of using standard costs and variances except

Disadvantages of using standard costs and variances include all of the following except

A cost benchmark is valid only if the standards are

Standards should be reviewed and adjusted at least

At lean companies, employees tend to be multi-skilled and cross-trained to perform a number of duties. These workers are held in high-esteem by management and are considered to be part of a team effort, rather than a labor force to be controlled. Consequently, this

When deciding whether or not to adopt standard costs and perform variance analysis, management should do which of the following?

How is the variable manufacturing overhead efficiency variance calculated?

How is the variable overhead rate variance calculated?

The variable overhead rate variance is also known as which of the following?

The variable overhead rate variance may be caused by variances in the following production inputs except

What does the variable overhead efficiency variance tell management?

The ________ is the difference between the actual machine hours run and the standard machine hours allowed for the actual production volume.

Which of the following statements may be true if actual units produced exceed the budgeted units to be produced?

The two fixed overhead variances are the

What type of variance results when the actual fixed overhead costs incurred are greater than the budgeted fixed overhead costs?

How is the fixed overhead budget variance calculated?

How is the fixed overhead volume variance calculated?

Which of the following examples may lead directly to a favorable fixed overhead volume variance?

What may cause a sales volume variance for fixed expenses?

The entry to allocate manufacturing overhead costs to production involves which of the following?

Work in process inventory is debited for which of the following when recording the use of direct materials in the production process?

Raw materials inventory is credited for which of the following when recording the use of direct materials in the production process?

Which of the following shows the effect on work in process inventory when assigning direct labor costs to the production process?

Cost of goods sold is shown at which of the following on a standard cost income statement?

Regarding a standard cost income statement, which of the following is true?

The ________ department is most likely responsible to incur a "direct material price variance."

The ________ department may be responsible to incur a "direct labor rate variance."

The ________ department may be responsible to incur a "direct labor efficiency variance."

The ________ department may be responsible to incur a "sales volume variance."

Which term below is best paired with "a summarized budget that can easily be computed for several volume levels"?

Which term below is best paired with "The difference between the actual overhead cost incurred and the flexible budget amount of overhead cost for actual number of output"?

A(n) ________ "arises because the number of units actually sold differs from the static budget units."