Question
1. What would result in a favorable volume variance? Production is greater than budgeted There is a favorable efficiency variance Production is equal to sales
1. What would result in a favorable volume variance?
Production is greater than budgeted
There is a favorable efficiency variance
Production is equal to sales
There is a favorable spending variance
2. An entity that uses direct costing in its performance evaluation would normally include the following variance in its report, except:
Price variance
Volume variance
Budget variance
Efficiency variance
3. Who is least likely to be involved in establishing standard costs for a company?
the president
the controller
the factory administrator
the marketing manager
4. Standard costs differ from budgeted costs because standard costs are:
always expressed in total amounts while budgeted costs are in per unit amounts
costs incurred for actual production while budgeted costs are that should have been incurred for production
costs that have been incurred for actual production while budgeted costs are costs that should be incurred for planned production
based on engineering studies while budgeted costs are based on historical data -
5. Statement 1: A budgeted cost for one unit of product may not always be the standard cost of said product. Statement 2: Standard costs maybe described as benchmarks used to evaluate performance.
both statements are true
both statements are false
Statement 1 is true
Statement 2 is true
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started