Question : 51.Which manager usually held responsible for materials price variances? A. Plant manager B. Purchasing : 1257196

 

 

51.Which manager is usually held responsible for materials price variances?   

A. Plant manager

 

B. Purchasing agent

 

C. Production supervisor

 

D. Marketing manager

 

 

52.Which manager is usually held responsible for labor price variances?   

A. Sales manager

 

B. Purchasing agent

 

C. Marketing manager

 

D. Production supervisor

 

 

53.Which manager is normally held responsible for fixed cost volume variances?   

A. Production supervisor

 

B. Upper level marketing managers

 

C. Plant manager

 

D. Purchasing agent

 

 

54.Select the correct statement regarding general, selling, and administrative (GS&A) costs.   

A. Variable general, selling, and administrative costs can have price variances.

 

B. Variable general, selling, and administrative costs cannot have usage variances.

 

C. Cost variances are not generally computed for fixed general, selling, and administrative costs.

 

D. All of these answers are correct.

 

 

55.Select the correct statement regarding flexible budgets.   

A. A flexible budget can only be prepared for a single level of activity.

 

B. A flexible budget is not used for planning.

 

C. A flexible budget shows expected revenues and costs at a variety of activity levels.

 

D. A flexible budget is also known as the master budget.

 

 

56.Which of the following reason(s) cause flexible budgets to be useful planning tools?   

A. Flexible budgets allow managers to anticipate results under a variety of scenarios.

 

B. Flexible budgets can help determine if a company’s cash position is adequate.

 

C. Flexible budgets can help managers judge if materials and storage facilities are appropriate for various production levels.

 

D. All of these answers are correct.

 

 

57.Which of the following is a difference between a static and a flexible budget?   

A. Static budgets use the same fixed cost amounts, whereas flexible budgets change the amount of fixed costs at different levels of activity.

 

B. Static budgets are based on the same per unit variable amount, whereas flexible budgets are based on multiple per unit variable amounts.

 

C. Static budgets are based on single estimate of volume, whereas flexible budgets show estimated costs and revenues at a variety of activity levels.

 

D. None of these answers is correct.

 

 

58.Which of the following is an incorrect statement regarding variances?   

A. A variance is favorable when expected sales are more than actual sales.

 

B. A variance is a difference between budgeted and actual amounts.

 

C. A variance can be calculated for both revenues and expenses.

 

D. A variance can be both favorable and unfavorable.

 

 

59.When would a sales variance be listed as favorable?   

A. When actual sales exceed budgeted or expected sales

 

B. When actual sales are less than budgeted or expected sales

 

C. When actual sales are equal to budgeted or expected sales

 

D. None of these answers is correct.

 

 

60.When would a cost variance be listed as unfavorable?   

A. When actual costs are less than budgeted costs

 

B. When actual costs exceed budgeted costs

 

C. When actual costs are equal to budgeted costs

 

D. When actual sales are less than budgeted sales