ACC220 | Accounting in Business - Lackawanna university

ACC220 Managerial Accounting Module 5 Quiz Question 1Standards that represent levels of operation that can be attained with reasonable effort are called a. theoretical standards b. ideal standards c. variable standards d. normal standards Question 2The principle of exceptions allows managers to focus on correcting variances between a. standard costs and actual costs b. variable costs and actual costs c. competitor’s costs and actual costs d. competitor’s costs and standard costs

Question 3A favorable cost variance occurs when

a. actual costs are more than standard costs b. standard costs are more than actual costs c. standard costs are less than actual costs d. actual costs are the same as standard costs Question 4Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. What is the direct labor time variance? a. ?$9,300 favorable b. ??$9,300 unfavorable c. ?$9,450 favorable d. ??$9,450 unfavorable Question 5 If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a a. controllable variance b. price variance c. quantity variance d. rate variance Question 6The budgeting process does not involve which of the following activities? a. Specific goals are established. b. Periodic comparison of actual results to goals. c. Execution of plans to achieve goals. d. Increase in sales by increasing marketing efforts. Question 7A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed a. flexible budgeting b. continuous budgeting c. zero-based budgeting d. master budgeting Question 8The primary difference between a static budget and a flexible budget is that a static budget a. is suitable in volatile demand situation while flexible budget is suitable in a stable demand situation b. is concerned only with future acquisitions of fixed assets, whereas a flexible budget is concerned with expenses that vary with sales c. includes only fixed costs, whereas a flexible budget includes only variable costs d. is a plan for a single level of production, whereas a flexible budget can be converted to any level of production Question 9The production budgets are used to prepare which of the following budgets? a. operating expenses b. direct materials purchases, direct labor cost, and factory overhead cost c. sales in dollars d. sales in units Question 10Motorcycle Manufacturers, Inc. projected sales of 78,000 machines for the year. The estimated January 1 inventory is 6,500 units, and the desired December 31 inventory is 6,000 units. What is the budgeted production (in units) for the year? a. 78,500 b. 70,000 c. 77,500 d. 70,500