Question : 139.Which of the following true? a.The form, content, and frequency of : 1311907

 

 

139.Which of the following is true?

a.The form, content, and frequency of variance reports vary considerably among companies.

b.The form, content, and frequency of variance reports do not vary among companies.

c.The form and content of variance reports vary considerably among companies, but the frequency is always weekly.

d.The form and content of variance reports are consistent among companies, but the frequency varies.

 

 

140.Denmark Corporation’s variance report for the purchasing department reports 1,000 units of material A purchased and 2,400 units of material B purchased. It also reports standard prices of $2 for Material A and $3 for Material B. Actual prices reported are $2.10 for Material A and $2.80 for Material B. Denmark should report a total price variance of

a.$380 F.

b.$340 F.

c.$340 U.

d.$380 U.

 

 

141.When is a variance considered to be ‘material’?

a.When it is large compared to the actual cost

b.When it is infrequent

c.When it is unfavorable

d.When it could have been controlled more effectively

 

 

 

 

 

142.Variance reports are

a.external financial reports.

b.SEC financial reports.

c.internal reports for management.

d.all of these.

 

 

143.In using variance reports, management looks for

a.total assets invested.

b.significant variances.

c.competitors’ costs in comparison to the company’s costs.

d.more efficient ways of valuing inventories.

 

144.Parnell Company prepared its income statement for internal use. How would amounts for cost of goods sold and variances appear?

a.Cost of goods sold would be at actual costs, and variances would be reported separately.

b.Cost of goods sold would be combined with the variances, and the net amount reported at standard cost.

c.Cost of goods sold would be at standard costs, and variances would be reported separately.

d.Cost of goods sold would be combined with the variances, and the net amount reported at actual cost.

 

 

145.Alex Co. prepared its income statement for management using a standard cost accounting system. Which of the following appears at the “standard” amount?

a.Sales

b.Selling expenses

c.Gross profit

d.Cost of goods sold

 

 

146.The costing of inventories at standard cost for external financial statement reporting purposes is

a.not permitted.

b.preferable to reporting at actual costs.

c.in accordance with generally accepted accounting principles if significant differences exist between actual and standard costs.

d.in accordance with generally accepted accounting principles if significant differences do not exist between actual and standard costs.

 

 

147.Income statements prepared internally for management often show cost of goods sold at standard cost and variances are

a.separately disclosed.

b.deducted as other expenses and revenues.

c.added to cost of goods sold.

d.closed directly to retained earnings.

 

 

148.In Zero Company’s income statement, they report gross profit of $55,000 at standard and the following variances:

Materials price $   420F

Materials quantity600F

Labor price420U

Labor quantity 1,000F

Overhead900F

Zero would report actual gross profit of

a.$51,660.

b.$52,500.

c.$57,500.

d.$58,340.