1. What is the principle of reporting by exception with variance analysis?
   1. Report variances only occasionally
   2. Report only those variances that exceed a certain limit
   3. Report only to the most senior management
   4. Report only adverse variances

2. What is an attainable standard?

1. A standard which includes no allowance for losses, waste and inefficiencies. It represents the level ofperformance which is attainable under perfect operating conditions
2. B A standard which includes some allowance for losses, waste and inefficiencies. It represents the levelof performance which is attainable under efficient operating conditions
3. A standard which is based on currently attainable operating conditions
4. A standard which is kept unchanged, to show the trend in costs

3. Which of the following statements is correct?

1. The operating standards set for production should be the most ideal possible.
2. The operating standards set for production should be the minimal level.
3. The operating standards set for production should be the attainable level.
4. The operating standards set for production should be the maximum level.