Quiz
Cost- Ch 7
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Questions in this quiz (10)
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.
- ATrue
- BFalse
2Management by exception is a practice whereby managers focus more closely on ________.
- Aa static budget
- Bareas that are not operating as anticipated
- Cactivity-‐‑based costing
- Dexceptional decision-‐‑making models Answer: B
3A variance is ________.
- Athe difference between actual fixed cost per unit and standard variable cost per unit
- Bthe standard units of inputs for one output
- Cthe difference between an actual result and a budgeted performance
- Dthe difference between actual variable cost per unit and standard fixed cost per unit
4 A variance is the difference between the actual cost for the current and expected (or budgeted) performance.
- ATrue
- BFalse
5The flexible budget contains ________.
- Abudgeted amounts for actual output
- Bbudgeted amounts for planned output
- Cactual costs for actual output
- Dactual costs for planned output
6An unfavorable sales-‐‑volume variance could result from ________.
- Aan inappropriate assignment of labor or machines to specific jobs
- Bcompetitors taking market share
- Can inefficiency of a purchasing manager in bargaining with suppliers
- Da decrease in actual selling price compared to anticipated selling price
7The flexible-‐‑budget variance for direct cost inputs can be further subdivided into a ________.
- Astatic-‐‑budget variance and a sales-‐‑volume variance
- Bsales-‐‑volume variance and an efficiency variance
- Cprice variance and an efficiency variance
- Dstatic-‐‑budget variance and a price variance
8When benchmarking, management accountants are most valuable when they ________.
- Apresent differences in the benchmarking data to management
- Bhighlight differences in the benchmarking data to management
- Cprovide insight into why costs or revenues differ across companies
- Dprovide complex mathematical analysis
9 A favorable variance indicates that ________.
- Abudgeted costs are less than actual costs
- Bactual revenues exceed budgeted revenues
- Cactual operating income is less than the budgeted amount
- Dbudgeted contribution margin is more than the actual amount
10A favorable variance can be automatically interpreted as "ʺgood news."ʺ
- ATrue
- BFalse
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- Description
- Midterm Cost Accounting Quiz on Cost- Ch 7, created by Rebecca Escobar on 08/04/2016.
- Author
- Rebecca Escobar
- Language
- English
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