is a technique used to filter cost information contained in performance reports - 62795

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1. ________________ is a technique used to filter cost information contained in performance reports to each manager within the organization at an appropriate level of detail or summarization.

 Managerial reporting 

 Responsibility reporting 

 Financial reporting 

 Segment reporting

 

9. If the actual level of activity is different from the budgeted level, a _________ budget is prepared for the actual level of activity.

 continuous 

 zero-based 

 master 

 flexible

 

10. When analyzing end of period production cost variances, which of the following product cost components will not need \"flexing\"?

 direct material. 

 direct labor. 

 variable manufacturing overhead. 

 fixed manufacturing overhead.

 

13. A variance is the difference between actual costs and:

 selling price. 

 expected costs. 

 activity-based costs. 

 historical costs.

 

14. The difference between standard and actual cost per unit of input is measured by:

 the raw materials price variance. 

 the direct labor rate variance. 

 the variable overhead spending variance. 

 all of the above.

 

15. When an income statement shows data for segments of the organization, and data for each segment are added together to get totals for the whole organization:

 all expenses should be allocated to the segments. 

 common fixed expenses should be allocated to the segments. 

 only direct revenues and direct expenses should be assigned to segments. 

 direct fixed expenses should be subtracted as one amount in the \"total\" column.

 

17. If it is to be most useful for control purposes, what variance should be reported to the supervisor responsible for the number of pounds of corn syrup used in the manufacture of a candy bar?

 Raw material price variance, expressed in cents per pound. 

 Raw material usage variance, expressed as a total cost for the month 

 Raw material usage variance, expressed in total pounds for the month. 

 Raw material usage variance, expressed in total pounds for the week.

 

18. The purchasing agent of an organization acquired some raw materials at a bargain price, even though she knew that their quality was lower than that of the materials customarily used. This action resulted in a favorable raw materials purchase price variance that might very well have been more than offset by:

 an unfavorable raw materials usage variance. 

 a favorable direct labor efficiency variance. 

 an unfavorable variable overhead spending variance. 

 an unfavorable direct labor rate variance. 

 

19. When an appropriately established and effective standard cost system is used to value inventory:

 cumulative variances are deferred. 

 a significant unfavorable net variance may be reported as an expense of the current period. 

 a significant favorable net variance may be reported as an expense of the current period. 

 the explanatory notes to the financial statements will explain the disposition of the net variance. 

 

20. A performance report for direct labor shows a variance between the budget and actual amounts. This difference is a:

 budget variance. 

 direct labor efficiency variance. 

 direct labor spending variance. 

 direct labor rate variance.

 

22. What should the decision rule be to determine what budget variances to investigate?

 Investigate unfavorable variances only. 

 Investigate favorable variances only. 

 Investigate if the variance is significant. 

 Investigate all variances.

 

23. Which of the following variances is not determined during an overhead variance analysis?

 Volume variance. 

 Budget variance. 

 Spending variance. 

 Price variance.

 

24. The fixed manufacturing overhead variance caused by actual activity being different from the estimated activity used in calculating the predetermined overhead application rate is called the:

 spending variance. 

 budget variance. 

 efficiency variance. 

 volume variance.

 

25. The part of the variable overhead budget variance due to the difference between actual hours required and standard hours allowed for the work done is called the:

 variable overhead spending variance. 

 variable overhead budget variance. 

 variable overhead efficiency variance. 

 variable overhead volume variance.

 

26. The part of the variable overhead budget variance due to the difference between actual variable overhead cost and the standard cost allowed for the actual inputs used is called the:

 variable overhead spending variance. 

 variable overhead budget variance. 

 variable overhead efficiency variance. 

 variable overhead volume variance.

 

27. If the net variance of a business using standard costing is significant relevant to total production cost, the net variance should be:

 assigned to cost of goods sold. 

 allocated between work in process, finished goods, and cost of goods sold. 

 carried forward to the next accounting period. 

 none of the above.

 

 

28. If the net of all variances is immaterial relative to the total production costs incurred during the period, the net variance is:

 treated as an adjustment to cost of goods sold. 

 ignored. 

 treated as an adjustment to work in process, finished goods, and cost of goods sold. 

 treated as an adjustment to manufacturing overhead.

 

29. The preferred format for a segmented income statement emphasizes:

 direct and common fixed costs. 

 variable and fixed costs. 

 operating expenses and fixed costs. 

 variable costs and operating expenses.

 

30. Which of the following is a true statement pertaining to segment income statements?

 Only present the individual segments\' net income, not total company net income. 

 Only include variable costs. 

 Do not present a segment margin. 

 Do not include arbitrarily allocated common fixed expenses when calculating segment margin. 

 All of the above.

 
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