1. Using spreadsheet based computer programs will help a company perform "what if" budget analysis. (Points: 2)
True
False
2. The person evaluating a manager should consider (Points: 2)
any deviation from budgeted amounts as an item that should be investigated.
all favorable variances as indications of good performance.
that managers will focus their attention on those measures that they know will be part of their evaluation.
All of the above are true.
3. Which of the following is not used in deciding how many units to produce in a period? (Points: 2)
The desired number of units in ending inventory.
The expected sales in units.
The number of units in beginning inventory.
The number of units of raw material in inventory.
4. If the number of units in beginning inventory is more than the number of units in ending inventory, the number of units sold is (Points: 2)
less than the number of units produced.
greater than the number of units produced.
less than the number of units in beginning inventory.
greater than the number of units in ending inventory.
5. A set of budget relationships that can be adjusted for various activity levels is called a(n) (Points: 2)
opportunity budget.
static budget.
variable budget.
flexible budget.
6. The material price variance uses the quantity of material _____, while the material quantity variance uses the quantity of material _____. (Points: 2)
purchased, used
used, budgeted
budgeted, wasted
wasted, purchased
7. The company purchased 3,000 yards of material in March for $21,000. The company used 2,800 yards in March in order to make 7,700 dresses. How much is the direct materials price variance?(Points: 2)
$1,400 unfavorable.
$1,500 unfavorable.
$1,400 favorable.
$1,500 favorable.
8. If the material quantity variance is favorable, the (Points: 2)
material price variance will be unfavorable.
production manager has used materials efficiently.
quantity purchased is less than the quantity used.
actual price per unit is less than the standard price per unit.
9. The overhead volume variance is favorable when (Points: 2)
more units are produced than were originally planned.
actual overhead costs are less than the flexible budget.
the predetermined overhead rate was set too low.
there are units remaining in ending inventory.
10. Volume variance occurs because: (Points: 2)
cost control is poor.
the estimated activity level is wrong.
Both A and B.
Neither A nor B.