Cost- Ch 7

1. 1 Management by exception is the practice of concentrating on areas not operating as anticipated (such as a cost overrun) and placing less attention on areas operating as anticipated.

   1. AVerdadero
   2. BFalso
2. 2Management by exception is a practice whereby managers focus more closely on ________.

   1. Aa static budget
   2. Bareas that are not operating as anticipated
   3. Cactivity-­‐‑based costing
   4. Dexceptional decision-­‐‑making models Answer: B
3. 3A variance is ________.

   1. Athe difference between actual fixed cost per unit and standard variable cost per unit
   2. Bthe standard units of inputs for one output
   3. Cthe difference between an actual result and a budgeted performance
   4. Dthe difference between actual variable cost per unit and standard fixed cost per unit
4. 4 A variance is the difference between the actual cost for the current and expected (or budgeted) performance.

   1. AVerdadero
   2. BFalso
5. 5The flexible budget contains ________.

   1. Abudgeted amounts for actual output
   2. Bbudgeted amounts for planned output
   3. Cactual costs for actual output
   4. Dactual costs for planned output
6. 6An unfavorable sales-­‐‑volume variance could result from ________.

   1. Aan inappropriate assignment of labor or machines to specific jobs
   2. Bcompetitors taking market share
   3. Can inefficiency of a purchasing manager in bargaining with suppliers
   4. Da decrease in actual selling price compared to anticipated selling price
7. 7The flexible-­‐‑budget variance for direct cost inputs can be further subdivided into a ________.

   1. Astatic-­‐‑budget variance and a sales-­‐‑volume variance
   2. Bsales-­‐‑volume variance and an efficiency variance
   3. Cprice variance and an efficiency variance
   4. Dstatic-­‐‑budget variance and a price variance
8. 8When benchmarking, management accountants are most valuable when they ________.

   1. Apresent differences in the benchmarking data to management
   2. Bhighlight differences in the benchmarking data to management
   3. Cprovide insight into why costs or revenues differ across companies
   4. Dprovide complex mathematical analysis
9. 9 A favorable variance indicates that ________.

   1. Abudgeted costs are less than actual costs
   2. Bactual revenues exceed budgeted revenues
   3. Cactual operating income is less than the budgeted amount
   4. Dbudgeted contribution margin is more than the actual amount
10. 10A favorable variance can be automatically interpreted as "ʺgood news."ʺ

    1. AVerdadero
    2. BFalso

Descripción

Midterm Cost Accounting Test sobre Cost- Ch 7, creado por Rebecca Escobar el 08/04/2016.

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Rebecca Escobar

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