Standard v budget, optimum levels, variances, WIP

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