Question
Multiple Choice Questions. Please help. ____ 26. A formal written statement of management's plans for the future, expressed in financial terms, is a: a. gross
Multiple Choice Questions. Please help.
____ 26. A formal written statement of management's plans for the future, expressed in financial terms, is a:
a. | gross profit report |
b. | responsibility report |
c. | budget |
d. | performance report |
____ 27. The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows:
Standard Costs | |
Direct materials | 2,500 kilograms @ $8 |
|
|
|
|
Actual Costs | |
Direct materials | 2,600 kilograms @ $8.75 |
The amount of the direct materials quantity variance is:
a. | $875 favorable |
b. | $800 unfavorable |
c. | $800 favorable |
d. | $875 unfavorable |
____ 28. JSW Co. has an operating leverage of 4. Sales are expected to increase by 8% next year. Operating income is:
a. | unaffected |
b. | expected to increase by 2% |
c. | expected to increase by 32% |
d. | expected to increase by 4 times |
____ 29. Standards that represent levels of operation that can be attained with reasonable effort are called:
a. | theoretical standards |
b. | ideal standards |
c. | variable standards |
d. | normal standards |
____ 30. The three most common cost behavior classifications are:
a. | variable costs, product costs, and sunk costs |
b. | fixed costs, variable costs, and mixed costs |
c. | variable costs, period costs, and differential costs |
d. | variable costs, sunk costs, and opportunity costs |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started