1. Standard costs embody targets. The targets should: A. be very easy to achieve so everyone gets rewarded B. reflect ideal performance so the company can measure efficiency losses C. be used to evaluate performance and assign blame D. reflect a particular management team's goals
2. What is the typical treatment of small year-end balances in the variance accounts? A. Recalculate all standard costs, and adjust to the actual basis for external financial reporting purposes B. Close to cost of goods of sold C. Prorate the direct material and labor variances across cost of goods sold, work in process and finished goods inventories D. Prorate the variances across the raw materials, work in process, and finished goods inventories
3. Which of these is true? A. Budgeted fixed factory overhead = Budgeted overhead per unit actual volume B. Budgeted fixed factory overhead = Budgeted overhead per unit standard volume C. Budgeted factory overhead = (Budgeted fixed overhead per unit budgeted volume) + actual variable overhead D. Budgeted factory overhead = Budgeted fixed overhead + (budgeted variable overhead x budgeted volume)
4. Which of the following is not a type of overhead variance? A. Overhead spending variance B. Overhead wage variance C. Overhead efficiency variance D. Overhead volume variance