Question : 5) The degree to which a predetermined objective or target : 1212137

 

5) The degree to which a predetermined objective or target is met is known as ________.

A) efficiency

B) variance

C) effectiveness

D) benchmarking

 

6) If manufacturing machines are breaking down more than expected, this will contribute to a(n) ________.

A) favorable direct manufacturing labor price variance

B) unfavorable direct manufacturing labor price variance

C) favorable direct manufacturing labor efficiency variance

D) unfavorable direct manufacturing labor efficiency variance

7) Which of the following statements is true about analyzing a single variance?

A) It should be overemphasized to take proper decision.

B) It should be evaluated in isolation from other variances.

C) It can lead to different other variances.

D) It should be used for quality evaluation.

 

8) Variance analysis should be used ________.

A) to understand why variances arise and to improve future performance

B) as the sole source of information for performance evaluation

C) to punish employees that do not meet standards

D) to set the standards which are very easy to achieve to encourage employees to focus on meeting standards

 

9) Variances should be investigated ________.

A) when they are kept below a certain amount

B) when there is a small variance for critical items such as product defects

C) even though the cost of investigation exceeds the benefit

D) when there is an in-control occurrence

 

10) Cost reductions can be the result of ________.

A) price increments

B) congestion due to scheduling a large number of rush orders

C) producing products faster and more efficiently

D) inappropriate assignment of labor or machines to specific jobs

 

11) Nonfinancial performance measures ________.

A) are usually used in combination with financial measures for control purposes

B) are used to evaluate overall cost efficiency

C) allow managers to make informed tradeoffs

D) are often the sole basis of a manager’s performance evaluations

12) Which of the following is an example of nonfinancial performance measure?

A) percentage of products started and completed without requiring any rework

B) direct manufacturing labor efficiency variance

C) direct materials price variance

D) quantity discounts obtained on order of large quantity

 

13) A company has a policy “investigate all variances exceeding $3,000 or 15% of the budgeted cost, whichever is lower.” There is a variance of $2,000 in repair and maintenance costs of $12,000. What does the company do in the given situation?

A) It should be ignored as it is less than $3,000.

B) It deserves more attention as it is more than 15% of total repair cost.

C) It should be considered an in-control occurrence.

D) It should be investigated as all variances are equally important.

 

14) Which of the following is an example of financial performance measure?

A) number of square yards of cloth used to produce 1,000 jackets

B) direct manufacturing labor efficiency variance

C) the percentage of jackets started and completed without requiring any rework

D) quality of direct material

 

 

 

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