Which of the following is the best explanation for an unfavourable materials quantity variance? 1) The price of direct materials was greater than planned at standard. 2) More product was produced than was planned for in the budget. 3) Production equipment was not properly maintained, 4) Production exceeded sales. d. Which of the following is a benefit of decentralization? 1) Decentralization allows for easier communication within the organization. 2) Decentralization improves profits through intercompany sales. 3) Decentralization ensures optimal decisions. 4) Decentralization allows faster response to local conditions. e. Which of the following statements is the best example of moral hazard? 1) A manager accepts risk knowing that any negative consequences will be borne by another person. 2) Perquisites will be over-consumed by managers. 3) Individuals will pursue their own goals to the detriment of the firm. 4) Managers incur additional costs to monitor employees who are not properly trained h. Which of the following best describes the time interval from customer order to product delivery? 1) Order receipt time 2) Manufacturing lead 3) Customer response time 4) Order-delivery time Which of the following would be included in a quality cost report as an appraisal cost? 1) Product testing 2) Suppliers evaluations 3) Liability claims 4) Machine repairs j. According to the theory of constraints, which of the following actions will improve throughput? 1) Reduce set-up time through engineering redesign. 2) Increase selling price relative to input costs. 3) Avoid arbitrary allocation of fixed overhead. 4) Use activity-based costing to allocate non-manufacturing costs to product. k. Which of the following is a weakness of results controls? 1) They give less autonomy to employees. 2) Conflicting objectives may cause problems between divisions. 3) They are expensive to implement. 4) They are not useful if the results are controllable by the employees