Question 1: Consider the following statements.
Statement A: A standard is a unit amount.
Statement B: A budget is a total amount.
Option 1: Statement A is true and Statement B is false
Option 2: Statement A is false and Statement B is true
Option 3: Both Statements A and B are true
Option 4: Both Statements A and B are false
Question 2: ___________ contribute to management control by providing basis for evaluation of cost control.
Option 1: Standard costs
Option 2: Budget
Question 3: Which of the following standards represent optimum levels of performance under perfect operating conditions?
Option 1: Ideal standard
Option 2: Normal standard
Question 4: The following options are the causes of which of the given variances?
- Paying workers higher wages than expected.
- Misallocation of workers.
Option 1: Labor price variance
Option 2: Direct Labor variance
Option 3: Material variance
Question 5: Which of the following costs are applied to work in process on the basis of the standard hours allowed for the work done?
Option 1: Fixed costs
Option 2: Manufacturing overhead costs
Option 3: Variable costs
Question 6: Which of the following types of incremental analysis assumes that sales of products in other markets are not affected by special order?
Option 1: Accept an order at a special price
Option 2: Sell or process further
Option 3: Allocate limited resources
Question 7: Which of the following options is defined as difference between actual overhead costs and overhead costs applied to work done?
Option 1: Total Overhead Variance
Option 2: Manufacturing overhead Variance
Option 3: Material Variance
Question 8: Eliminate an Unprofitable Segment does not include which of the following options?
Option 1: It focus on relevant costs profit entities.
Option 2: It considers effect on related product lines.
Option 3: It obtains additional business by making a major price concession to a specific customer.
Question 9: Which of the following techniques is based directly on accounting data?
Identify the correct option to fill in the given blank.
Option 1: Cash Payback
Option 2: Annual Rate of Return
Option 3: Discounted Cash Flow
Question 10: Consider the following statements.
Statement A: Financial information includes revenues and costs as well as their effect on overall profitability.
Statement B: Non-financial information includes effect on employee turnover, the environment, or overall company image.
Option 1: Statement A is true and Statement B is false
Option 2: Statement A is false and Statement B is true
Option 3: Both Statements A and B are true
Option 4: Both Statements A and B are false