You are watching: If actual costs are greater than standard costs, there is a(n)
c. The really unit price the raw materials or the actual amounts of raw materials used was higher than the standard unit price or standard amounts of raw products expected.
A total materials variance is analyzed in state ofa. Price and quantity variances.b. Buy and also sell variances.c. Quantity and also quality variances.d. Chop and loose variances.
The purchasing certified dealer of the Poplin, Inc. Ordered products of lower quality in an effort to economize on price. What variance will certainly most most likely result?a. Favorable products quantity varianceb. Favorable full materials variancec. Unfavorable materials price varianced. Unfavorable labor quantity variance
Which one of the following statements is true?a. If the products price variance is unfavorable, then the products quantity variance must likewise be unfavorable.b. If the materials price variance is unfavorable, then the materials quantity variance should be favorable.c. Price and quantity variances move in the exact same direction. If one is favorable, the others will be together well.d. Over there is no correlation of favorable or unfavorable because that price and quantity variances
Variances from requirements area. Express in full dollars.b. Express on a per-unit basis.c. Express on a percent basis.d. Every one of these answers space correct.
The full materials variance is equal to thea. Products price variance.b. Difference between the materials price variance and also materials quantity variance.c. Product of the products price variance and the materials quantity variance.d. Amount of the materials price variance and also the products quantity variance.
. The purchasing agent of the Poplin, Inc. Ordered products of lower quality in an initiative to economize top top price. What variance will certainly most likely result?a. Favorable products quantity varianceb. Favorable complete materials variancec. Unfavorable products price varianced. Unfavorable labor quantity variance
A favorable variancea. Is one indication that the firm is not operating in one optimal manner.b. Implies a positive result if quality control standards space met.c. Implies a positive result if standards are flexible.d. Means that standards room too loosely specified.
. If actual prices are greater than standard costs, there is a(n)a. Normal variance.b. Unfavorable variance.c. Favorable variance.d. Error in the accounting system.
Standards differ from budgets in that:(a)budgets yet not standards may be provided in valuing inventories.(b)budgets yet not standards might be journalized and posted.(c)budgets room a full amount and also standards space a unit amount.(d)only budgets add to monitoring planning and control.
Standard costs:(a)are enforced by governmental agencies.(b)are predetermined unit expenses which companies use as measures of performance.(c)can be used by manufacturing companies yet not by company or not-for-profit companies.(d)All that the above.
The benefits of standard expenses include every one of the adhering to except:(a)management by exception may be used.(b)management plan is facilitated.(c)they may simplify the costing the inventories.(d)management must use a revolution budget.
The setup of requirements is:(a)a managerial audit decision.(b)a management decision.(c)a worker decision.(d)preferably collection at the appropriate level the performance.
(b)a monitoring decision.Standards are collection by management. The other options are incorrect because setting standards needs input indigenous (a) managerial accountants and (c) occasionally workers, but the final decision is made by management. An option (d) is incorrect because setup standards at the best level of performance is uncommon due to the fact that of the perceived an adverse effect on worker morale.
Which the the following is correct about the full overhead variance?(a)Budgeted overhead and also overhead applied are the same.(b)Total yes, really overhead is written of change overhead, addressed overhead, and duration costs.(c)Standard hrs actually operated are used in computing the variance.(d)Standard hours enabled for the work-related done is the measure supplied in computer the variance.
(d)Standard hours enabled for the job-related done is the measure provided in computer the variance.Standard hours enabled for work done is the measure used in computing the variance. The other choices are incorrect due to the fact that (a) budgeted overhead is offered to calculate the predetermined overhead rate while overhead used is equal to conventional hours enabled times the predetermined overhead rate, (b) overhead is a product cost and also does no include duration costs, and (c) standard hours allowed, not hrs actually worked, are supplied in computing the overhead variance.
The formula for computing the total overhead variance is:(a)actual overhead less overhead applied.(b)overhead budgeted less overhead applied.(c)actual overhead less overhead budgeted.(d)No exactly answer is given.
(a)actual overhead much less overhead applied.Total overhead variance equates to actual overhead less overhead applied.
Which of the following is incorrect about variance reports?(a)They facilitate "management by exception."(b)They have to only be sent out to the optimal level the management.(c)They have to be all set as shortly as possible.(d)They might vary in form, content, and also frequency among companies.
(b)They have to only be sent out to the peak level that management.Variance reports must be sent out to the level of administration responsible for the area in i m sorry the variance occurred so it have the right to be remedied as easily as possible. The other options are exactly statements.
In utilizing variance reports come evaluate cost control, management normally looks into:(a)all variances.(b)favorable variances only.(c)unfavorable variances only.(d)both favorable and unfavorable variances that exceed a predetermined quantitative measure such as a portion or dissension amoun
(d)both favorable and unfavorable variances the exceed a predetermined quantitative measure such together a portion or disagreement amount.
Generally accepted accounting principles enable a firm to:(a)report inventory at standard cost yet cost of goods sold need to be reported at really cost.(b)report price of products sold at conventional cost however inventory need to be reported at really cost.(c)report inventory and also cost of items sold in ~ standard expense as lengthy as there room no far-reaching differences in between actual and also standard cost.(d)report inventory and cost of goods sold only at actual costs; traditional costing is never permitted.
(c)report inventory and cost of items sold in ~ standard expense as lengthy as there space no far-reaching differences in between actual and standard cost.GAAP permits a firm to report both inventory and cost of goods sold at standard cost as long as there are no far-reaching differences in between actual and also standard cost
Which that the complying with would not be one objective used in the client perspective that the balanced scorecard approach?(a)Percentage of customers who would introduce product come a friend.(b)Customer retention.(c)Brand recognition.(d)Earnings every share.
(d)Earnings every share.Earnings per share is no an objective supplied in the client perspective the the well balanced scorecard approach.
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Which that the complying with is incorrect about a traditional cost audit system?(a)It is applicable to job order costing.(b)It is applicable to process costing.(c)It reports only favorable variances.(d)It keeps different accounts for each variance.
(c)It reports just favorable variances.A conventional cost accountancy system reports both favorable and unfavorable variances
Which yearly statement reconciles the beginning of year cash balance come the end of the year cash balance?
Watkins trophies, inc., produces hundreds of medallions make of bronze, silver, and gold. The medallions space identical other than for the materials used in your manufacturer. What costing mechanism would you recommend the company to use?
Financial bookkeeping plus MyAccountingLab v Pearson eText, worldwide Edition9th EditionCharles T. Horngren, Walter T Harrison