Question :
61. Manufacturing companies use standard costs for the following except: A. Variable costsB. Direct : 1233891
61. Manufacturing companies use standard costs for the following except:
A. Variable costs
B. Direct Materials
C. Direct Labor
D. Factory Overhead
62. Standard costs are used in companies for a variety of reasons. Which of the following is not one of the benefits for using standard costs?
A. Used to indicate where changes in technology and machinery need to be made.
B. Used to value inventory
C. Used to plan direct materials, direct labor, and factory manufacturing cost.
D. Used to control costs.
63. The principle of exceptions allows managers to
A. focus on correcting variances between standard costs and actual costs.
B. focus on correcting variances between variable costs and actual costs.
C. focus on correcting variances between competitor’s costs and actual costs.
D. focus on correcting variances between competitor’s costs and standard costs.
64. Several people play an essential part in setting standards. Which of the following is incorrect as to setting standards?
A. Accountants expresses judgement in dollars and cents.
B. Engineers identify material, labor, and machine requirements.
C. Human resource managers provide personnel information.
D. Quality managers provide quality measures that will be used to evaluate rejects.
65. Periodic comparisons between planned objectives and actual performance are reported in:
A. zero-base reports
B. budget performance reports
C. master budgets
D. budgets
66. The standard price and quantity of direct materials are separated because:
A. GAAP reporting requires this separation
B. direct materials prices are controlled by the purchasing department, and quantity used is controlled by the production department
C. standard quantities are more difficult to estimate than standard prices
D. standard prices change more frequently than standard quantities
67. Standard costs are divided into which of the following components?
A. Price Standard and Quantity Standard
B. Materials Standard and Labor Standard
C. Quality Standard and Quantity Standard
D. Price Standard and Quantity Standard
68. A favorable cost variance occurs when
A. Actual costs are more than standard costs.
B. Standard costs are more than actual costs.
C. Standard costs are less than actual costs.
D. None of the above.
69. Total manufacturing cost variance includes:
A. Direct materials price variance, direct labor cost variance, and fixed factory overhead volume variance
B. Direct materials cost variance, direct labor rate variance, and factory overhead cost variance
C. Direct materials cost variance, direct labor cost variance, variable factory overhead controllable variance
D. Direct materials cost variance, direct labor cost variance, factory overhead cost variance
70. Which of the following is not a reason standard costs are separated in two components?
A. the price and quantity variances need to be identified separately to correct the actual major differences.
B. identifying variances determines which manager must find a solution to major discrepancies.
C. if a negative variance is over-shadowed by a favorable variance, managers may overlook potential corrections.
D. variances brings attention to discrepancies in the budget and requires managers to revise budgets closer to actual.
