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STANDARD COSTS mcq homework




Question;39.What is a standard cost?;a. The;total number of units times the budgeted amount expected;b. Any;amount that appears on a budget;c. The;total amount that appears on the budget for product costs;d. The;amount management thinks should be incurred to produce a good or;service;40. A standard cost is;a. a;cost which is paid for a group of similar products.;b. the;average cost in an industry.;c. a;predetermined cost.\;d. the;historical cost of producing a product last year.;41. The difference between a budget and a;standard is that;a. a;budget expresses what costs were, while a standard expresses what costs should;be.;b. a;budget expresses management's plans, while a standard reflects what actually;happened.;c. a;budget expresses a total amount, while a standard expresses a unit amount.;d. standards;are excluded from the cost accounting system, whereas budgets are generally;incorporated into the cost accounting system.;42. Standard costs may be used by;a. universities.;b. governmental;agencies.;c. charitable;organizations.;d. all;of these.;43. Which of the following statements is false?;a. A;standard cost is more accurate than a budgeted cost.;b. A;standard is a unit amount.;c. In;concept, standards and budgets are essentially the same.;d. The;standard cost of a product is equivalent to the budgeted cost per unit of;product.;44. Budget data are not journalized in cost;accounting systems with the exception of;a. the;application of manufacturing overhead.;b. direct;labor budgets.;c. direct;materials budgets.;d. cash;budget data.;45. It is possible that a company's financial;statements may report inventories at;a. budgeted;costs.;b. standard;costs.;c. both;budgeted and standard costs.;d. none;of these.;46. A standard differs from a budget because a;standard;a. is;a predetermined cost.;b. contributes;to management planning and control.;c. is a unit amount.;d. none;of the above, a standard does not differ from a budget.;47. Marburg Co. expects direct materials cost of $6 per unit for;100,000 units (a total of $600,000 of direct materials costs). Marburg?s;standard direct materials cost and budgeted direct materials cost is;Standard Budgeted;a. $6;per unit $600,000 per;year;b. $6 per unit $6;per unit;c. $600,000 per year $6;per unit;d. $600,000 per year $600,000;per year;48. Using;standard costs;a. makes;employees less ?cost-conscious.?;b. provides;a basis for evaluating cost control.;c. makes;management by exception more difficult.;d. increases;clerical costs.;49. Using standard costs;a. can;make management planning more difficult.;b. promotes;greater economy.;c. does;not help in setting prices.;d. weakens;management control.;50. If standard costs are incorporated into the;accounting system;a. it;may simplify the costing of inventories and reduce clerical costs.;b. it;can eliminate the need for the budgeting process.;c. the;accounting system will produce information which is less relevant than the;historical cost accounting system.;d. approval;of the shareholders is required.;51. Standard costs;a. may;show past cost experience.;b. help;establish expected future costs.;c. are;the budgeted cost per unit in the present.;d. all;of these.;52. Which of the following statements about;standard costs is false?;a. Properly;set standards should promote efficiency.;b. Standard;costs facilitate management planning.;c. Standards;should not be used in "management by exception.;d. Standard;costs can simplify the costing of inventories.;53. Which of the following is not considered an;advantage of using standard costs?;a. Standard;costs can reduce clerical costs.;b. Standard;costs can be useful in setting prices for finished goods.;c. Standard;costs can be used as a means of finding fault with performance.;d. Standard;costs can make employees "cost-conscious.;54. If a company is concerned with the;potential negative effects of establishing standards, it should;a. set;loose standards that are easy to fulfill.;b. offer;wage incentives to those meeting standards.;c. not;employ any standards.;d. set;tight standards in order to motivate people.;55. A standard which represents an efficient;level of performance that is attainable under expected operating conditions is;called a(n);a. ideal;standard.;b. loose;standard.;c. tight;standard.;d. normal;standard.;56. Ideal standards;a. are;rigorous but attainable.;b. are;the standards generally used in a master budget.;c. reflect;optimal performance under perfect operating conditions.;d. will;always motivate employees to achieve the maximum output.;57. The final decision as to what standard;costs should be is the responsibility of;a. the;quality control engineer.;b. the;managerial accountants.;c. the;purchasing agent.;d. management.;58. The labor time requirements for standards;may be determined by the;a. sales;manager.;b. product;manager.;c. industrial;engineers.;d. payroll;department manager.;59. The two levels that standards may be set at;are;a. normal;and fully efficient.;b. normal;and ideal.;c. ideal;and less efficient.;d. fully;efficient and fully effective.;`*;60. The most rigorous of all standards is the;a. normal;standard.;b. realistic;standard.;c. ideal;standard.;d. conceivable;standard.;`


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