Reference no: EM132967473
Problem 1: Which of the following refers to standards that allow for no machine breakdowns or other work interruption and that require peak efficiency at all times?
a) Normal standards
b) Practical standards
c) Ideal standards
d) Budgeted standards
Problem 2: Under a standard cost system, who is usually held responsible for the materials price variances?
a) The production manager
b) The sales manager
c) The purchasing manager
d) The engineering manager
Problem 3: Which of the following statements is NOT correct?
a) If the denominator level of activity and the standard hours allowed for the output of the period are the same, then there is no volume variance.
b) If the denominator level of activity is greater than the standard hours allowed for the output of the period, then the volume variance is unfavourable.
c) If the denominator level of activity is greater than the standard hours allowed for the output of the period, then the volume variance is favourable.
d) The volume variance is the most appropriate measure of the utilization of plant facilities.