Q 1. Which of the subsequent is not an advantage of post-audits of capital investments?
a. They show whether project should continue or should be abandoned.
b. They assist managers make better estimates for future projects.
c. They encourage managers to propose realistic net cash inflows with their project proposals.
d. They assist managers to decide which project should be selected.
2. What does the variable overhead efficiency variance tell management?
a. How powerfully variable manufacturing overhead was used
b. How competently fixed manufacturing overhead was used
c. How capably employees applied manufacturing overhead to each unit
d. How much of the net variable manufacturing overhead variance is due to machine hours used provided the actual volume of output
3. The costs to prepare a major website for a company would be considered to be a capital asset if those costs are important and material (for example, the costs to build up the website exceed $100,000).
a. True
b. False
4. Myles Company budgeted 10,500 pounds of direct materials costing $23.50 per pound to make 5,300 units of product. The company essentially purchased 11,000 pounds of direct materials costing $25.00 per pound to make the 5,300 units. Evaluate the direct materials price variance?
a. $16,500 unfavorable
b. $16,500 favorable
c. $15,750 unfavorable
d. $15,750 favorable