Reference no: EM132537248
Question 1: The difference between actual and standard cost caused by the difference between the actual price and the standard price is called the:
A) Standard variance.
B) Quantity variance.
C) Volume variance.
D) Controllable variance.
E) Price variance.
Question 2: A planning budget based on a single predicted amount of sales or production volume is called a:
A) Sales budget.
B) Standard budget.
C) Flexible budget.
D) Fixed budget.
E) Variable budget.
Question 3: The difference between the total budgeted overhead cost and the overhead applied to production using the predetermined overhead rate is the:
A) Production variance.
B) Volume variance.
C) Overhead cost variance.
D) Quantity variance.
E) Controllable variance.
Question 4: A profit center:
A) Incurs costs, but does not directly generate revenues.
B) Incurs costs and directly generates revenues.
C) Has a manager who is evaluated solely on efficiency in controlling costs.
D) Incurs only indirect costs and directly generates revenues.
E) Incurs only indirect costs and generates revenues.
Question 5: Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:
A) Direct expenses.
B) Indirect expenses.
C) Controllable expenses.
D) Uncontrollable expenses.
E) Fixed expenses.
Question 6: The most useful evaluation of a manager's cost performance is based on:
A) Controllable costs.
B) Contribution percentages.
C) Departmental contributions to overhead.
D) Fixed expenses.
E) Direct costs.