Description of this paper

general business data bank




Question;31. A;standard that assumes perfect implementation and maximum efficiency is called;a(n);A.;Currently attainable standard.;B.;Practical standard.;C.;Efficiency standard.;D.;Normal standard.;E.;Ideal standard.;32. A;standard that sets the performance criterion at a level that workers with;proper training and experience can attain most of the time without;extraordinary effort is a(n);A.;Currently attainable standard. B. Practical standard.;C.;Efficiency standard. D. Ideal standard.;33.;The total variable cost flexible-budget variance for any given period;A.;Is the difference between actual total variable cost incurred and master;budgeted total variable cost. B. Is decomposable into sales-volume and;sales-mix components.;C.;Is decomposable into production-volume and production-mix components.;D. Can be broken down into;flexible-budget variances for major costs such as materials, labor, variable;overhead, and variable selling expenses.;34.;The flexible-budget variable cost variance includes all of the following except;A.;Direct materials variances.;B.;Sales price variance.;C.;Variable selling and administrative expenses variances.;D.;Direct labor variances.;E.;Variable overhead variances.;35.;Which one of the;following is the difference in direct material costs between the actual amount;incurred and the total standard cost in the flexible budget for the units;manufactured during the period?;A.;Direct materials price variance.;B.;Direct materials mix;variance.;C.;Direct materials usage;variance.;D.;Direct materials;flexible-budget variance.;E.;Direct materials;efficiency variance.;36. For;a direct material, which one of the following is the difference between the;actual and standard unit price of the direct material multiplied by the actual;quantity of the material purchased?;A.;Direct materials price variance.;B.;Direct materials volume;variance.;C.;Direct materials usage;variance.;D.;Direct materials;flexible-budget variance.;E.;Direct materials mix;variance.;37. Which;one of the following, for each direct material used in production, is the;difference between the actual units of material used and the total standard;units of the direct material that should have been used for the units of the;product manufactured during the period, multiplied by the standard unit price;of the direct materials?;A.;Direct materials sales-volume variance.;B.;Direct materials rate;variance.;C.;Direct materials usage;variance.;D.;Direct materials;flexible-budget variance.;E.;Direct materials mix;variance.;38.;Which one of the;following is the difference between the actual and standard hourly wage rate;multiplied by the actual direct labor hours worked during a period?;A.;Total direct labor standard cost;variance.;B.;Direct labor efficiency;variance.;C.;Direct labor usage;variance.;D.;Direct labor;flexible-budget variance.;E.;Direct labor rate;variance.;39.;Which one of the;following is the difference between the actual and standard direct labor hours;for the units manufactured, multiplied by the standard hourly wage rate per;hour?;A.;Direct labor price variance.;B.;Direct labor efficiency;variance.;C.;Total direct labor;standard cost variance.;D.;Direct labor;flexible-budget variance.;E.;Direct labor;operating-income variance.;40.;The primary purpose of calculating standard cost variances each period;is;A.;To achieve financial control regarding;operating activities.;B.;To facilitate the;recording of manufacturing costs during a period.;C.;To adjust reported;income to flexible-budget income.;D.;To diagnose the problems;of operating problems as well as what should be done to correct such problems.;41. A;firm uses a JIT inventory system and has an unfavorable selling price variance;for the period just ended. If the proportion of the total variable;manufacturing costs to total sales in both the flexible budget and the actual;operating results is 70%;A.;The firm has an unfavorable total;variable manufacturing cost variance.;B.;The firm has a favorable;total variable manufacturing cost variance.;C.;The firm has an;unfavorable total flexible-budget variance.;D.;The firm has a favorable;contribution margin variance.;E.;The firm has a favorable;total flexible-budget variance.;42.;The effect on sales, expenses, or operating income of changes in units sold is;measured by the;A.;Flexible-budget variance.;B.;Sales-volume variance.;C.;Sales price variance.;D.;Operating income;flexible-budget variance.;E.;Production-volume;variance.;43. The;difference between actual and standard cost caused by the difference between;the actual number of resource-units used and the standard number of;resource-units that should have been used for the output of the period is;called the;A.;Controllable variance. B. Master budget variance. C. Flexible-budget variance.;D.;Quantity (or efficiency) variance. E. Price variance.;44.;Which of the following is not a plausible cause of a direct labor;efficiency variance?;A.;Poor scheduling of work.;B.;Inadequate supervision of workers.;C.;Materials used are different from those specified.;D.;Failure to update the standard cost to conform to wage provisions in the union;contract. E. Batch sizes during the period were different from standard.;45.;The direct materials usage ratio for a given period is;A.;Defined as the ratio of quantity purchased to quantity used.;B.;Defined as the inverse of the materials quantity variance for the period. C.;Entered into its own variance account at the end of the period.;D.;A useful indicator of performance by the manufacturing department. E. A useful;indicator of performance of the purchasing department.;46. A;favorable cost variance of significant magnitude;A. Is;the result of exceptional planning.;B.;May lead to future improvements in production methods if the variance is;investigated to determine its underlying cause(s). C. Is strong evidence of;excellent operating performance.;D.;Is strong evidence of tight financial control.;E.;Does not need to be investigated as to its underlying cause. 47. A flexible;budget contains;A.;Cost targets based on actual output for the period. B. Cost targets based on;planned output for the period.;C.;Actual costs incurred for the actual output of the period.;D.;Costs and revenues for the difference between planned and actual output.;E.;Costs based on actual output of the period, and revenue based on master;budgeted output. 48. A favorable price variance for direct materials indicates;that;A.;Lower-quality materials were purchased. B. The materials standard is likely out;of date.;C.;A lower price than expected was paid for the materials.;D.;Less material was used in production this period than should have been used.;E.;There will most likely be an unfavorable materials efficiency (quantity);variance.;49. A;manufacturer planned to use $82 of materials per unit produced, but in the most;recent period it actually used $80 of material per unit produced. During this;same period, the company planned to produce 1,200 units, but actually produced;only 1,000 units. The flexible-budget variance for materials is;A.;$2,000 favorable.;B.;Impossible to determine;without additional information.;C.;$14,000 unfavorable.;D.;$16,400 unfavorable.;E.;$2,400 unfavorable.;50.;All of the following are limitations of short-term financial performance;indicators except;A.;Employees and managers can take actions;that improve short-term financial performance at the expense of long-term;performance.;B.;Focusing on individual;cost variances can result in optimum local but not global (i.e., firm-wide);performance.;C.;Operating personnel may;not readily understand or be able to interpret financial-performance;indicators.;D.;Senior managers;typically find non-financial performance indicators more useful than summary;financial-performance indicators.;51.;Flexible budgets and standard costs are useful for assessing;A.;Strategic performance during the most recent period. B. Operating performance;during the period.;C.;Short-term financial performance. D. Management control.;52.;For operational control, a management accounting system should include;A.;Performance measures associated with basic business processes. B. Only;financial-control measures, such as standard cost variances.;C.;High-level financial metrics such as return on investment (ROI) or return on;sales (ROS). D. A combination of short-term and strategic financial-performance;metrics.;53.;Which of the following is not considered a basic business process?;A.;Operating processes.;B.;Customer-management processes. C. Innovation processes.;D.;Social/regulatory processes. E. Just-in-time (JIT) processes.;54.;Which of the following is not an anticipated benefit of switching to a;JIT production system?;A.;Reduction in inventory holding costs.;B.;Reduction of monitoring costs associated with the production system. C.;Reduction in customer-response time.;D.;Increased sales due to increases in quality and customer satisfaction.;E.;Reduction in internal failure costs, such as the cost of reworking defective;outputs. 55. Customer-response time (CRT) is defined as;A.;The time between when a customer places an order and the time when the order is;received by the customer. B. The elapsed time between initial customer contact;and the time a customer places an order.;C.;The time between when a customer places an order and when that order is;manufactured.;D.;The time between when an order is started into production and when that order;is completed. 56. The term "processing cycle efficiency" (PCE);A.;Like manufacturing cycle time, is a measure of operational efficiency. B. Is;defined as the ratio of manufacturing lead time to delivery time.;C.;Is defined as manufacturing lead time minus delivery time.;D.;Is defined as the ratio of customer-response time to order-delivery time. E. Is;at an optimum level when PCE = 0.;57.;Which of the following;is not indicated as an advantage of using nonfinancial performance;measures, relative to financial performance measures, as part of an operational;control system?;A.;Nonfinancial performance indicators are readily understandable by operating;personnel.;B.;Nonfinancial performance indicators can be viewed as drivers of future;financial performance. C. Nonfinancial performance indicators direct attention;to precise problem areas that need attention. D. Nonfinancial performance;measures are more reliable than financial performance measures.;58.;Which of the following statements about processing cycle efficiency (PCE) is not;true;A.;It is defined as the ratio of processing time to non-processing time. B. It is;a measure of operating process efficiency.;C.;It is based on the relationship between actual processing time and total;production time.;D. It incorporates notions of;value-added" and "non-value-added," as discussed in the;development of activity-based cost (ABC) systems. E. The optimum value of PCE;is 1.;59. A;flexible-budget variance for any fixed cost;A.;Is defined as the difference between flexible-budget fixed cost and the level;of fixed costs reflected in the master (static) budget. B. Is undefined, except;when actual output equals budgeted output.;C.;Is typically zero, because the volume assumed in the flexible budget and the;master budget for fixed costs is identical. D. Is the difference between;budgeted fixed cost and actual fixed cost.;60.;The total operating-income variance for any period;A.;Is unaffected by variances between;actual and budgeted sales volume.;B.;Can be decomposed into a;total flexible-budget variance and a sales-volume variance.;C.;Can be decomposed into a;total flexible-budget variance and a sales price variance.;D.;Is equal to the sum of;selling and administrative expense variances plus the total sales-volume;variance for the period.;E.;Equals the sum of the;total flexible-budget variance plus the sales-mix variance for the period.


Paper#44930 | Written in 18-Jul-2015

Price : $22