Accounting 10 Questions

1. (TCO 4) The standard cost sheet includes all of the following, except (Points : 3)

        the standard quantity per unit.

        the standard material costs per unit.

        the standard cost per unit.

        the standard labor hours allowed for actual production.

2. (TCO 4) Which equation measures the total budget variance? (Points : 3)

        AQ * (AP - SP).

        SP * (AQ - SQ).

        SQ * (AP - SP).

        (AQ * AP) - (SQ * SP).

3. (TCO 4) Using more highly skilled direct laborers might affect which variance? (Points : 3)

        Direct materials usage variance

        Direct labor efficiency variance

        Variable manufacturing overhead efficiency variance

        All of the above

4. (TCO 4) The standard overhead cost assigned to each unit of product manufactured is called the (Points : 3)

        total manufacturing cost.

        predetermined overhead cost.

        applied overhead cost.

        estimated overhead cost.

5. (TCO 4) If a company produces fewer units than expected, there will be (Points : 3)

        a favorable budget variance.

        an unfavorable spending variance.

        a favorable volume variance.

        an unfavorable volume variance.

6. (TCO 6) Which market is characterized by the following: many firms in the industry, a somewhat unique product, fairly easy entry into the industry, and spending for differentiation of the product? (Points : 3)

        Perfectly competitive market

        Monopolistic competition

        Monopoly

        Oligopoly

7. (TCO 6) The pricing of a new product at a low initial price to build market share quickly is called (Points : 3)

        target costing.

        predatory pricing.

        price skimming.

        penetration pricing.

8. (TCO 6) Under absorption costing, when production is less than sales volume, the profits, using variable costing procedures, will be (Points : 3)

        less than.

        greater than.

        equal to.

        randomly different than.

9. (TCO 6) The contribution margin variance is the difference between the actual contribution margin and the (Points : 3)

        actual unit price.

        budgeted contribution margin.

        budgeted variable expenses.

        actual variable expenses.

10. (TCO 6) In order for an effect of changing sales mix on profit to exist, a company must produce (Points : 3)

        one product.

        more than one product.

        more than one location.

        an even number of products.