Accounting Managerial Cengage Quizzes
Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material, $ 4.50; and standard costs for 4,800 pounds of material at $5.10 per pound. What is the direct materials price variance?
$3,000 favorable
Which of the following conditions normally would not indicate that standard costs should be revised?
Actual costs differed from standard costs for the preceding week.
The budgeting process does not involve which of the following activities?
Increase in sales by increasing marketing efforts
Which of the following is not a characteristic of a job order costing system?
It accumulates cost for each department within the factory.
Which of the following statements is false?
There is no overlap between financial and managerial accounting
Cost behavior refers to the manner in which
a cost changes as the related activity changes
Which of the following products would be manufactured using a job order costing system?
a graduation invitation
Which of the following would be most likely to use process costing?
a lawn fertilizer manufacturer
For which of the following businesses would the process cost system be appropriate?
a paper mill
Which of the following would most likely use a job order costing system?
a swimming pool installer
In a process cost system, the amount of work in process inventory is valued by
allocating departmental costs between completed and partially completed units
Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered a human behavior problem?
allowing employees the opportunity to be a part of the budget process
In order to be useful to managers, managerial accounting reports should possess all of the following characteristics EXCEPT
be prepared in accordance with generally accepted accounting principles
Process and job order cost systems are similar in all of the following ways except
both use job order cost cards
A formal written statement of management's plans for the future, expressed in financial terms, is a
budget
Periodic comparisons between planned objectives and actual performance are reported in:
budget performance reports
job order costing and process costing are
cost accounting systems
In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries?
debit Work in Process—Dept. B; credit Work in Process—Dept. A
The benefits of comparing actual performance of the operations against planned goals include all of the following except
determining how managers are performing against prior years' actual operating results
The two categories of cost comprising conversion costs are
direct labor and factory overhead
The total manufacturing cost variance consists of
direct materials cost variance, direct labor cost variance, and factory overhead cost variance
The standard price and quantity of direct materials are separated because
direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department
Budgeting supports the planning process by encouraging all of the following activities except
directing and coordinating operations during the period
The budget process involves doing all of the following except
dismissing all managers who fail to achieve operational goals specified in the budget
The three categories of manufacturing costs comprising the total cost of work in process are direct labor, direct materials, and
factory overhead
The three most common cost behavior classifications are
fixed cost, variable costs, and mixed costs
Which of the following budgets allow for adjustments in activity levels?
flexible budget
When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company, the manager is experiencing
goal conflict
graph of total fixed cost
horizontal line
For which of the following businesses would the job order cost system be appropriate?
hospital
Which of the following are the two main types of cost accounting systems for manufacturing operations?
job order cost and process cost systems
Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?
job order cost system
What is the primary criterion for the preparation of managerial accounting reports?
manager needs
Which of the following is most associated with managerial accounting?
may rely on estimates and forecasts
A process cost system be appropriate for a
natural gas refinery
Standards that represent levels of operation that can be attained with reasonable effort are called
normal standards
Which of the following activity bases would be the most appropriate for food costs of a hospital?
number of patients who stay in the hospital
Which of the following is most associated with financial accounting?
prepared in accordance with GAAP
Standard costs are divided into which of the following components?
price standard and quantity standard
The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is
process
In process cost accounting, the costs of direct materials and direct labor are charged directly to
processing departments
Most operating decisions of management focus on a narrow range of activity called the
relevant range of production
The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the unit's performance is known as a
responsibility center
Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?
salary of a factory supervisor
For which of the following businesses would a process cost system be appropriate?
shampoo manufacturer
The principle of exceptions allows managers to focus on correcting variances between
standard costs and actual costs
A favorable cost variance occurs when
standard costs are more than actual costs
graph of mixed cost
starts form $__ then increases diagonally (y=x+__)
graph of total variable cost
starts from (0,0) then its diagonally increasing (y=x)
All of the following are characteristics of a process cost system except
the system accumulates costs per job
whcih of the following is NOT a reason a service firm would use a job order costing system?
to determine department costs within the firm
Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service?
total of miles driven
Standard costs are used in companies for a variety of reasons. Which of the following is not one of the benefits for using standard costs?
used to indicate where changes in technology and machinery need to be made
costs that vary in total in direct proportion to changes in an activity level are called
variable costs
The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as
zero-based budgeting