ACCT 2082 - Ch. 23 Quiz PDF

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ACCT 2082 - Ch. 23 Quiz...

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1 1.) Standards that represent levels of operation that can be attained with reasonable effort are called a. b. c. d.

ideal standards theoretical standards variable standards normal standards

Answer: d. normal standards 2.) The principle of exceptions allows managers to focus on correcting variances between a. b. c. d.

standard costs and competitor's costs variable costs and competitor's costs

actual costs and standard costs actual costs and actual costs

Answer: a. standard costs and actual costs 3.) The standard price and quantity of direct materials are separated because a. standard quantities change more frequently than standard prices b. standard prices are more difficult to estimate than standard quantities c. direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department d. GAAP and IFRS reporting requires separation Answer: c. direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department 4.) A favorable cost variance occurs when a. b. c. d.

standard costs are less than actual costs actual costs are the same as standard costs actual costs are more than standard costs standard costs are more than actual costs

Answer: d. standard costs are more than actual costs 5.) The total manufacturing cost variance is a. b. c. d.

the flexible budget variance plus the time variance the difference between planned costs and standard costs for units produced the difference between actual costs and standard costs for units produced None of these choices are correct.

Answer: c. the difference between actual costs and standard costs for units produced 6.) If the price paid per unit differs from the standard price per unit for direct materials, the variance is a a. b. c. d.

variable variance volume variance price variance controllable variance

Answer: c. price variance 7.) If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is a a. price variance

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