Multiples

1. Which of the following is true concerning standard costs? a. Standard costs are estimates of costs attainable only under the b. most ideal conditions but rarely practicable. Standard costs are difficult to use with a process costing system c. If probably used, standard can help motivate employees. d. Unfavorable variance, material in amount, should be investigated but large favorable variance need not be investigated. Which of the following terms is best identified with a system of standard costs? a. Marginal costing. b. . Contribution approach. c. Management by exception. d. Standardized accounting system. 3. Which of the following is standard cost nearly like? a. Estimate cost. c. Product cost. b. Budgeted cost. d. Period cost. 4. Which of the following best characterizes a standard cost system? a. Standard costs involve cost control which, in turn, mean cost reduction. b. Standards can pinpoint responsibility and can help motivate employees.C. All variances from standard should be reviewed. d. All significant unfavorable variances should be reviewed, bin significant favorable variances need not be reviewed, 5. Standard costing will produce the same results as actual or conventional costing when standard cost variances are distributed to a. cost of goods sold and inventories. b. a statement of financial position account. C. an income and expense account. d. none of the above. 6. When performing input-output analysis in standard costing, "standard hours allowed" is a means of measuring a. standard output at standard hours. b. actual output at standard hours. c. standard output at actual hours. d. actual output at actual hours. 7. The operating capacity that is required to satisfy anticipated sales demand is a. normal capacity. b. ideal capacity. c. practical capacity. d. theoretical capacity. 8. If the actual amount of direct materials used in a process exceeded the standard amount of materials, there was: an unfavorable materials price variance. b. a favorable materials price variance. c. an unfavorable materials quantity variance. d. a favorable materials quantity variance. 9. When computing variances from standard costs, the difference between actual and standard price multiplied by actual quantity yields a: a. combined price-quantity variance. b. price variance. c. volume variance. d. mix variance