Question;1. By convention, short-term financial control;is accomplished by all the following except;A.;Comparing actual to budgeted financial;results.;B.;Calculating a series of;cost and revenue variances at the end of the period.;C.;The use of flexible;budgets and standard costs.;D.;Explaining the total;operating-income variance for a given period.;E.;The use of productivity;analysis.;2. Operational control systems can be;distinguished from financial control systems;A.;In the time horizon: financial-control;systems have a long-term perspective.;B.;Because they focus on;the control of basic business processes.;C.;Because such systems;rely on the use of flexible, not static, budgets.;D.;Because they focus on;explaining the total operating income variance for a period.;E.;They do not include;nonfinancial performance indicators.;3. Traditional financial control systems have;recently been criticized because;A.;They use flexible, not static, budgets.;B.;They generally lead to;goal-congruent behavior on the part of managers.;C.;They focus more in;improving basic business processes than short-term financial results.;D.;They fail to incorporate;nonfinancial performance indicators into the evaluation process.;E.;They use static, not;flexible, budgets.;4.;One important short-term;goal for a company is to earn the projected operating income for the period.;Attainment of this goal is measured by comparing the actual operating income to;the;A.;Flexible-budget operating income.;B.;Prior period's operating;income.;C.;The income reflected in;the company's balanced scorecard.;D.;Master budget operating;income.;E.;Industry average;operating income.;5. The total operating-income variance for a;period reveals whether a company has achieved;A.;The sales level budgeted for the period.;B.;An adequate return on;investment (assets) during the period.;C.;Control of basic;business processes.;D.;Control of total;expenses for the period.;E.;The master budgeted;operating income for the period.;6. Another name for the total operating-income;variance for a period is;A.;Flexible-budget variance.;B.;Master (static) budget;variance.;C.;Sales-volume variance.;D.;Production-volume;variance.;E.;Sales-mix variance.;7. Authoritative standards (within the context;of a standard cost system) are determined primarily by;A.;Distributors.;B.;Employees.;C.;Customers.;D.;Suppliers.;E.;Managers.;8. The arrival of new manufacturing techniques;such as automation, flexible manufacturing systems, and cluster or cell;manufacturing has;A.;Emphasized the importance of direct;labor variances.;B.;Not had an effect on the;importance of direct labor variances.;C.;De-emphasized the;importance of direct labor variances.;D.;Made direct labor;variances obsolete.;E.;Eliminated the need to;calculate and report direct materials variances.;9. An organization's overall management;accounting and control system;A.;Includes the planning function.;B.;Is also referred as the;organization's core performance-measurement system.;C.;Is separate from its;operational control system.;D.;Includes nonfinancial;but not financial, performance measures.;E.;Focuses on strategic;not operational, control.;10.;The "flexible budget" can best be described as a budget that adjusts;A.;Revenues for sales-dollar changes.;B.;Revenues and expenses;for changes in output.;C.;Expenses for changes in budgeted output;between two periods.;D.;For efficiency, but not;selling price and cost variances.;E.;For selling price and;cost variances, but not efficiency variances.;11.;Which of the following is different in a flexible budget compared to the master;budget for a period?;A.;Selling price per unit.;B.;Variable cost per unit.;C.;Budgeted fixed cost.;D.;Sales volume.;12. A;flexible-budget variance measures the impact on short-term operating profit of;A.;Changes in sales volume.;B.;Changes in output during;the period.;C.;Differences in sales;mix?budgeted versus actual.;D.;Selling price and cost;differences?actual versus budgeted.;E.;Selling price, but not;cost differences?actual versus budgeted.;13. A;standard cost" is a predetermined amount (e.g., cost) that;A.;Should be incurred under relatively;efficient operating conditions.;B.;Will be incurred for an;operation or a specific objective.;C.;Must occur for an;operation or a specific objective.;D.;Cannot be changed once;it is established by management.;E.;Is useful for planning;and control but not inventory valuation purposes.;14.;Differences in expectation levels lead to two basic types of standards in a;standard cost system;A.;Ideal and real.;B.;Ideal and currently;attainable.;C.;Normal and conceptual.;D.;Attainable and real.;E.;Current and future.;15.;An organization planned;to use $82 of material per unit of output, but it actually used $80 per unit.;During this period, the company planned to make 1,200 units, but actually;produced only 1,000 units. The flexible budget amount for materials is;A.;$80,000.;B.;$82,000.;C.;$96,000.;D.;$98,400.;16. A;currently attainable standard" emphasizes;A.;Ideal or theoretical performance.;B.;Past performance of the;organization.;C.;Future performance of;the organization's primary competitors.;D.;Maximum performance.;E.;Relatively efficient;operating performance.;17.;An organization subject to intense competitive pressures would most likely use;A.;Ideal standards for its operations.;B.;Real standards for its;operations.;C.;Caution in even using;standards.;D.;A mix of types of;standards.;E.;Standards that are not;modified over time.;18. A;materials efficiency variance can be caused by all of the following except;A.;Actual output volume of the period;(i.e., units produced).;B.;Performance of the;workers in using the materials.;C.;Quality of the;materials.;D.;Skill level of the;workers using the materials.;E.;Inadequate employee;supervision.;19. A;standard cost system;A.;Cannot be used in conjunction with a;job-cost system.;B.;Is not permissible for;financial-reporting purposes.;C.;Is most easily;introduced in conjunction with a process-cost system.;D.;Is useful for planning;but not control purposes.;E.;Is useful for cost;control but not planning purposes.;20. A;standard gets progressively tighter over time.;A.;Peak-efficiency.;B.;Currently attainable.;C.;Benchmarked.;D.;Flexible-budget.;E.;Continuous-improvement.;21.;Using continuous-improvement standards likely has the effect(s) of all the;following except;A.;Reductions in inefficiencies.;B.;Reduced product defects.;C.;Constantly decreasing;standard levels.;D.;Improved productivity.;E.;Increasing pressure on;employees and managers.;22. A;total variable cost variance (such as for direct materials) can be broken down;into separate variances that evaluate;A.;Price and efficiency.;B.;Units and cost.;C.;Volume and productivity.;D.;Sales volume versus;sales mix.;E.;Efforts and results.;23. A;standard cost system should be designed to generate and report variances;A.;Coincidental with regular reporting;intervals.;B.;As soon as possible.;C.;Only when significant in;amount.;D.;Only when negative in;impact.;E.;Only when requested by;decision-makers.;24.;Which of the following benefits is not typically associated with a move;to a just-in-time (JIT) manufacturing system?;A.;Raw materials are delivered as close as;possible to time of production.;B.;Existence of long-term;contracts with selected suppliers.;C.;Reduction in employee;training and education costs.;D.;Decreases in;manufacturing lead time.;E.;Improved;customer-response time (CRT).;25.;The way managers and employees who are affected by a standard cost system;perceive the system will;A.;Be of little consequence on the success;of the system if correctly implemented.;B.;Generally be minimal in;impact on the implementation of the system.;C.;Affect its success or;failure in implementing the system.;D.;Be difficult to assess.;E.;Not matter in the long;run.;26.;For control purposes, it is usually preferable to calculate the materials price;variance;A.;At point of purchase.;B.;At point of production.;C.;At the end of the;period.;D.;Only if the materials;quantity variance is significant in amount.;E.;Only if it is;controllable by operating managers.;27.;The difference between the actual operating income of the period and master;budgeted operating income for the period is the;A.;Total flexible-budget variance.;B.;Sales-volume variance.;C.;Sales price variance.;D.;Operating income;flexible-budget variance.;E.;Total operating income;variance.;28.;The difference between the actual sales volume for a period and the;flexible-budget sales volume is;A.;The total sales-volume variance for the;period.;B.;The total;production-volume variance for the period.;C.;The sales price variance;for the period.;D.;The operating-income;sales volume variance for the period.;E.;A flexible-budget;variance.;29.;The difference between the flexible-budget operating income and the actual;operating income in a period is the;A.;Sales-mix variance.;B.;Sales-volume variance.;C.;Sales price variance.;D.;Operating income;flexible-budget variance.;E.;Total operating income;variance.;30.;The difference between;the total actual sales revenue of a period and the total flexible-budget sales;revenue for the units sold during the period is the;A.;Total flexible-budget variance.;B.;Sales volume variance.;C.;Selling price variance.;D.;Operating income flexible-budget;variance.;E.;Operating income;variance.
Paper#45065 | Written in 18-Jul-2015Price : $22