Ch.25 Quiz

Instructions
Read the questions carefully.

This assessment is worth 100 points.

  1. Standard costs can serve as a basis for evaluating actual performance.   (5 points)

      
      

  2. Standard material, labor, and overhead costs can be obtained from standard cost tables published by the Institute of Management Accountants.   (5 points)

      
      

  3. A budget performance report that includes variances usually has variances caused by both price differences and quantity differences.   (5 points)

      
      

  4. A cost variance equals the sum of the quantity variance and the price variance.   (5 points)

      
      

  5. Another name for a static budget is a variable budget.   (5 points)

      
      

  6. A fixed budget performance report explains why actual costs (such as direct materials cost) differed from the budgeted amounts.   (5 points)

      
      

  7. The amounts in a flexible budget are based on one expected level of sales or production.   (5 points)

      
      

  8. A variable or flexible budget is so named because it only focuses on variable costs.   (5 points)

      
      

  9. A flexible budget expresses all costs on a per unit basis.   (5 points)

      
      

  10. A flexible budget expresses variable costs on a per unit basis and fixed costs on a total basis.   (5 points)

      
      

  11. The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform a specific service are:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  12. The difference between actual and standard cost caused by the difference between the actual price per unit and the standard price per unit is called the:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  13. The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  14. An analytical technique used by management to focus on the most significant variances and give less attention to the areas where performance is satisfactory is known as:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  15. A planning budget based on a single predicted amount of sales or production volume is called a:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  16. A budget prepared after an operating period is complete to help managers evaluate past performance, and which uses fixed and variable costs in determining total costs, is called a:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  17. Static budget is another name for:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  18. Sales analysis is useful for:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  19. Kyle, Inc., has collected the following data on one of its products:



    The direct materials quantity variance is:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  20. Adams, Inc., uses the following standard to produce a single unit of its product:

    Overhead (2 hrs. @ $3/hr.)

    $ 6


    The flexible budget for overhead is $100,000 plus $1 per direct labor hour. Actual data for the month show overhead costs of $150,000, and 24,000 units produced. The overhead volume variance is:

       (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  



Portions copyright ©2005 The McGraw-Hill Companies.
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.