1. Variances are computed by taking the difference between which of the following?
A. Product cost and period cost.
B. Actual cost and differential cost.
C. Price factors and rate factors.
D. Product cost and standard cost.
E. Actual cost and standard cost.
2. The individual generally responsible for the direct-material price variance is the:
A. sales manager.
B. production supervisor.
C. purchasing manager.
D. finance manager.
E. head of the human resources department.
3. At the end of the accounting period, most companies close variance accounts to:
A. Raw-Material Inventory.
B. Work-in-Process Inventory.
C. Finished-Goods Inventory.
D. Cost of Goods Sold.
E. Income Summary.
4. A production supervisor generally has little influence over the:
A. direct-material quantity variance.
B. direct-labor efficiency variance.
C. number of units produced.
D. direct-material price variance.
E. All of these items.
5. When using a balanced scorecard, a company's market share is typically classified as an element of the firm's:
A. financial performance measures.
B. customer performance measures.
C. learning and growth performance measures.
D. internal-operations performance measures.
E. interdisciplinary performance measures.