cost accounting reviewer
11. A total variance is best defined as the difference between total
a.
actual cost and total cost applied for the standard output of the period.
b.
standard cost and total cost applied to production.
c.
actual cost and total standard cost of the actual input of the period.
d.
actual cost and total cost applied for the actual output of the period. 12. The term “standard hours allowed” measures
a.
budgeted output at actual hours.
b.
budgeted output at standard hours.
c.
actual output at standard hours.
d.
actual output at actual hours. 13. A large labor efficiency variance is prorated to which of the following at year-end?
WIP
FG
Cost of Goods Sold
Inventory
Inventory
a. no no no
b.
no yes yes
c.
yes no no
d.
yes yes yes 14. Which of the following factors should not be considered when deciding whether to investigate a variance?
a.
magnitude of the variance
b.
trend of the variances over time
c.
likelihood that an investigation will reduce or eliminate future occurrences of the variance
d.
whether the variance is favorable or unfavorable
15. At the end of a period, a significant material quantity variance should be
a.
closed to Cost of Goods Sold.
b.
allocated among Raw Material, Work in Process, Finished Goods, and Cost of Goods Sold.
c.
allocated among Work in Process, Finished Goods, and Cost of Goods Sold.
d.
carried forward as a balance sheet account to the next period. 16. When computing variances from standard costs, the difference between actual and standard price multiplied by actual quantity used yields a
a.
combined price-quantity variance.
b.
price variance.
c.
quantity variance.
d.
mix variance. 17. A company wishing to isolate variances at the point closest to the point of responsibility will determine its material price variance when
a.
material is purchased.
b.
material is
a.
actual cost and total cost applied for the standard output of the period.
b.
standard cost and total cost applied to production.
c.
actual cost and total standard cost of the actual input of the period.
d.
actual cost and total cost applied for the actual output of the period. 12. The term “standard hours allowed” measures
a.
budgeted output at actual hours.
b.
budgeted output at standard hours.
c.
actual output at standard hours.
d.
actual output at actual hours. 13. A large labor efficiency variance is prorated to which of the following at year-end?
WIP
FG
Cost of Goods Sold
Inventory
Inventory
a. no no no
b.
no yes yes
c.
yes no no
d.
yes yes yes 14. Which of the following factors should not be considered when deciding whether to investigate a variance?
a.
magnitude of the variance
b.
trend of the variances over time
c.
likelihood that an investigation will reduce or eliminate future occurrences of the variance
d.
whether the variance is favorable or unfavorable
15. At the end of a period, a significant material quantity variance should be
a.
closed to Cost of Goods Sold.
b.
allocated among Raw Material, Work in Process, Finished Goods, and Cost of Goods Sold.
c.
allocated among Work in Process, Finished Goods, and Cost of Goods Sold.
d.
carried forward as a balance sheet account to the next period. 16. When computing variances from standard costs, the difference between actual and standard price multiplied by actual quantity used yields a
a.
combined price-quantity variance.
b.
price variance.
c.
quantity variance.
d.
mix variance. 17. A company wishing to isolate variances at the point closest to the point of responsibility will determine its material price variance when
a.
material is purchased.
b.
material is