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.