The standards that allow for no machine breakdowns or other work interruption and that require peak efficiency at all times are referred to as: A) Normal standards B) Practical standards. C) Ideal standards. D) Budgeted standards. Which of the following statements concerning practical standards is incorrect? A) Practical standards can be used for product costing and cash budgeting. B) Practical standards can be attained by the average worker. C) When practical standards are used, there is no reason to adjust standards if an old machine is replaced by a newer, faster machine. D) Under practical standards, larger variances are less likely than under ideal standards. If a company follows a practice of isolating variance at the earliest point in time, what would be the appropriate time to isolate and recognize a direct material price variance? A) When material is issued. B) When is material is purchased. C) When material is used in production. D) When production is completed. The master budget process usually begins with the: A) Production budget. B) Operating budget. C) Sales budget. D) Cash budget. If sales increase from $80,000 per year to $120,000 per year, and if the degree of operating leverage is 5, then net income should increase by? A) 100%. B) 167%. C 250%. D) 33496. Which of the following approaches include investment in a performance measure? A) ROS and RI. B) ROB and RI. C) ROI and RI. D) ROI and ROS. Keeping all other factors constant, which of the following would not cause an increase in the ROI? A) actions that increase liabilities. B) increases in sales. C) reductions in expenses. D) reductions in assets