26271211
Description
Flashcards by ross young, updated more than 1 year ago
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Created by ross young
over 3 years ago
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| Question | Answer |
| What are the advantages of standard costing | help with decision making to assist in planning monitoring and controlling with variance analysis |
| What are the different types of standards that can be set? | ideal standard attainable standard basic standard |
| Which type of standard is most likely to motivate maangers and their staff? | attainable standard |
| What are some possible reasons for adverse labour efficiency variances? | poor training lower grade of labour used machine breakdowns working with inferior materials higher general inflation |
| What are some of the reasons for a favourable material usage variance? | different material quality higher grade of staff used improved production machinery |
| Name two non financial idicators for customer satisfaction | number of repeat orders customer complaints customer reviews |
| Name the four perspectives of a balanced scorecard? | financial customer internal innovation and learning |
| Are variable costs saved when shifting from a make to buy process? | Yes the variable costs would expect to be saved when production is ceased |
| What is the costing technique where contribution is divided by a scarce element to help arrive at production levels for different products | Limiting factor decisions |
| what is the total process for limiting factor calculations? | calculate contribution determone limiting factor divide LF into contribution rank the new updated contribution produce in order of ranking. |
| what is the margin of safety? | budgeted sales minus breakeven sales/ budgeted sales |
| target profit? | fixed costs + target profit / contribution per unit |
| When using discounted cash flow to compare automation or no automation what costs should be ignored | non cash items like depreciation ignore costs that are the same in both cases |
| What is the calculation for direct material price variance? | the standard cost (SC) of the actual |
| What is the calculation for material price variance? | the STANDARD COST of the ACTUAL QANTITY of material minus the ACTUAL COST of the ACTUAL QUANTITY of material used. |
| State the direct material usage variance | the STANDARD QUANTITY of material for actual production at standard price minus the ACTUAL QUANTITY of material at standard price |
| State the direct labour rate variance | the STANDARD COST of the HOURS USED minus the ACTUAL COST of the ACTUAL HOURs used. |
| State the direct labour efficiency variance | STANDARD LABOUR HOURS for ACTUAL PRODUCTION minus the ACTUAL LABOUR HOURS all at the standard rate |
| As a general rule, standard costing could be said to measure the standard cost of production expenses with the actual cost. TRUE or FALSE? | True |
| State the variable overhead expeniture variance | the standard variable overhead cost for the actual hours used minus the actual variable overhead cost incurred |
| State the variable overhead efficiency variance | standard hours for actual production at standard variable overhead rate minus actual hours used at standard variable overhead rate |
| State the fixed overhead expenditure variance | Budgeted fixed overheads for the period minus Actual fixed overhead for the period |
| In linear regression a common formula is Y= Mx + C Which value is the variable and whch fixed? | M is the variable C is the fixed |
| How do you calculate average annual change? | sales in last year - sales in first year/ number of years -1 |
| How do you create an index number for March, with January as the base, from the following data? Jan £160 Feb £168 March £169 | 169/160 x 100 |
| Why do we use index numbers | to simplfy financial comparisons to allow for the change in value of £ over time |
| The concept of target costing is to find the maximum selling price for a product. True or False? | False |
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