1. The most rigorous standards are:

a. cardio standards

b. ideal standards

c. normal standards

d. positive standards

2.

A direct materials quantity variance should be investigated with the:

a. Payroll department

b. Production department

c. Purchasing department

d. Human resources department

3. The formula (AH x SR) - (SH x SR) is used to calculate the:

a. materials price variance

b. materials quantity variance

c. labor time variance

d. labor rate variance

4. When accepting a special order which factor(s) should be considered?

a. qualitative factors

b. manufacturing capacity

c. all of these

d. quantitative analysis (differential analysis) results

5. Generally, a company should keep a product if:

a. the product's contribution margin is greater than its direct fixed costs.

b. the product's sales revenue is less than its variable costs.

c. its variable costs are greater than its sales revenue.

d. the product's contribution margin is less than its direct fixed costs.

6. The capital budgeting technique that uses accrual net income in determining the profitability of a capital investment is the:

a. Accounting rate of return

b. Payback period

c. Internal rate of return

d. Net present value

7.

Most of the capital asset screening tools use

a. accrual accounting expenses.

b. cash flow figures.

c. accrual accounting revenues.

d. net income.

8. A limitation of the payback period method is that:

a. it is easy to calculate

b. it fails to consider the time value of money

c. there are no limitations to the payback period method.

d. it is simple to understand

9. Accrual-based net income and net cash flows are not the same primarily because:

a. of repairs expenses paid in cash

b. of depreciation expense

c. one is a Pisces and one is a Sagittarius.

d. of the cost of the asset