Which of the following factors should be considered in establishing standards for use with a standard costing system? Select one: O A. Historical data O B. Current and planned technology, plant layout, and operating procedures C. Behavioral implications D. All of these answers are correct. A manufacturer develops budgets for the direct materials, direct labor, and manufacturing overhead that will be required in the production process to create which of the following? Select one: O A. The budget for merchandise purchases. O B. The selling and administrative expenses budget. O C. The cash budget. D. The production budget. o E. The sales budget. Which of the following is true for standard costs? Select one: o A. Standards should be revised upward when actual costs are higher than expected costs because of waste and inefficiency. B. Standards are the same for all companies in a given industry. O C. Standard costs are the costs that should be incurred to produce a product under normal conditions. O D. Standard costs may be used in job order cost systems but not in process cost accounting systems. Which of the following choices correctly notes a characteristic associated with perfection standards and one associated with practical standards? Practical Standards Perfection Standards Attainable in an ideal Incorporate abnormal occurrences when environment. setting quantity and efficiency targets. Result in many Are often attainable by workers. unfavorable variances. Tend to boost worker Generally are not preferred by c. morale over the long- behavioral scientists. run. Generally are easily Result in both favorable and unfavorable achieved by workers. variances. Generally, are preferred Are easier to achieve than practical by behavioral scientists. standards. Select one: A. Choice A o B. Choice B o C. Choice C o D. Choice D O E. Choice E Which approach to setting budgeted amounts assumes the elimination of inefficiencies? Select one: A. The continuous budgeting approach. O B. The zero-based budgeting approach. O C. The behavioral approach. O D. The incremental budgeting approach. Listed below are five variances (and possible causes) that are under review by management of Knight Company. Which of the following is least likely to cause the variance indicated? Select one: A. The need to close a plant for two hours because of blizzard conditions; labor efficiency variance. O B. The need to complete goods on a timely basis during a period of high absenteeism; labor rate variance. o C. The need to ship goods acquired from a distant supplier via overnight carrier than via common carrier truck; material quantity variance. D. A malfunctioning piece of manufacturing equipment; labor efficiency variance. E. A work-team that is very unhappy with its supervisor; labor efficiency variance. Consider the following statements about variance investigation: Variance investigation involves a look at favorable and unfavorable variances. Variance investigation is typically based on a cost-benefit analysis. Variance investigation is often performed by establishing guidelines similar to the following: Investigate variances that are greater than $X or greater than Y% of standard cost. Which of the above statements is (are) true? Select one: A. lll only o B. I, II, and III. o C. II and III. O D . Il only. E. I only. The benefits of budgeting include: Select one: O A. Enabling the company to produce more for less cost. O B. Guaranteeing that the business operates profitably. O C. Coordinating activities between departments within the organization. O D. Assigning blame to people for unpleasant situations