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    Standard v budget, optimum levels, variances, WIP

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    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

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    Solution Preview

    Question 1

    Consider the following statements.

    Statement A: A standard is a unit amount.
    Statement B: A budget is a total amount.

    Both can be per unit and total amount.

    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
    It provides benchmarks for comparison

    Question 3

    Which of the following standards represent optimum levels of performance under perfect operating ...

    Solution Summary

    The response discusses the Standard versus budget, optimum levels, variances, work in progress, overhead costs.

    $2.19

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