Question 1. The goals of coordinating manufacturing processes, reducing the amount of inventory, and improving overall productivity is particularly important in a:
Standard cost system.
Just-in-time system.
Normal costing system.
Activity based costing system.
Total quality management system.
Question 2. During the sales life cycle, which is an example of what happens during the introduction phase?
Sales and price decline, as do the number of competitors.
Sales continue to increase but at a decreasing rate. The number of competitors and product variety decline.
Sales increase rapidly along with an increase in product variety.
Sales rise slowly as customers become aware of the new product or service. Product variety is limited.
Question 3. During the sales life cycle, which is an example of what happens during the maturity phase?
Sales and price decline, as do the number of competitors.
Sales continue to increase but at a decreasing rate. The number of competitors and product variety decline.
Sales increase rapidly along with an increase in product variety.
Sales rise slowly as customers become aware of the new product or service. Product variety is limited.
Question 4. ____________________ is an important first step in value engineering because it identifies critical consumer preferences that will define the product's desired functionality:
Consumer analysis.
Sales force analysis.
Design analysis.
R&D analysis.
Market place analysis.
Question 5. The direct materials usage ratio for a given period is:
Defined as the ratio of quantity purchased to quantity used.
Defined as the inverse of the materials quantity variance for the period.
Entered into its own variance account at the end of the period.
A useful indicator of performance by the manufacturing department.
A useful indicator of performance of the purchasing department.
Question 6. A "standard cost" is a predetermined amount (e.g., cost) that:
Should be incurred under relatively efficient operating conditions.
Will be incurred for an operation or a specific objective.
Must occur for an operation or a specific objective.
Cannot be changed once it is established by management.
Is useful for planning and control but not inventory valuation purposes.
Question 7. The difference between the total actual sales revenue of a period and the total flexible-budget sales revenue for the units sold during the period is the:
Total flexible-budget variance.
Sales volume variance.
Selling price variance.
Operating income flexible-budget variance.
Operating income variance.
Question 8. The total variable cost flexible-budget variance for any given period:
Is the difference between actual total variable cost incurred and master budgeted total variable cost.
Is decomposable into sales-volume and sales-mix components.
Is decomposable into production-volume and production-mix components.
Can be broken down into flexible-budget variances for major costs such as materials, labor, variable overhead, and variable selling expenses.
Is directly affected by the difference between actual sales volume and the sales volume embodied in the flexible budget.
Question 9. In terms of allocating fixed overhead cost to products, generally accepted accounting principles:
Require that such allocations be based on normal capacity.
Allow for the use of either practical capacity or theoretical capacity.
Don't apply since the resulting data are used only internally (for control purposes).
Specify only that such costs be "reasonably allocated" to outputs.
Require that these costs be expensed in the period incurred.
Question 10. In a standard cost system, when production is greater than the denominator volume level, there will be:
An unfavorable production-volume variance.
An unfavorable total spending variance.
A favorable production-volume variance.
A favorable sales-volume variance.
A favorable overhead budget variance.
Question 11. The difference between variable overhead cost incurred and total standard variable overhead cost for the output of the period is called the:
Variable factory overhead flexible-budget variance.
Variable factory overhead spending variance.
Variable factory overhead rate variance.
Variable factory overhead e
Question 12. The difference between the total factory overhead cost in the flexible budget for the actual units produced and the amount of factory overhead cost applied to products using the standard overhead rate is called the factory overhead ______________ :
Flexible-budget variance.
Production-volume variance.
Total fixed cost variance.
Efficiency variance.
Controllable variance.
Question 13. A company's flexible budget for 15,000 units of production showed sales of $48,000; variable costs of $18,000; and fixed costs of $12,000. The operating income in the master budget for 20,000 units is:
$8,000.
$13,500.
$24,000.
$28,000.
$30,000.
Question 14. Lucky Company's direct labor information for the month of February is as follows:
Actual DL Hours Word (AQ) = 61,500
Standard DL Hours Allowed (SQ) = 63,000
Total Payroll for DL = $774,900
DL Efficiency Variance = $18,000
The actual direct labor rate per hour (AP) is:
$12.00.
$12.30.
$12.60.
$13.20.
$13.50.
Question 15. Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July:
Standard Quantity of DM for the Units Manufactured = 30,000
DM Purchased - Actual Cost = $63,000
Standard Price per Unit of DM (SP) = $2.00
Direct Material Efficiency Variance = $4,500 (F)
All materials purchased during the month were issued to production.
What was the company's direct materials flexible-budget (FB) variance for July?
$1,500 favorable.
$3,000 unfavorable.
$3,000 favorable.
$7,500 unfavorable.
$7,500 favorable.