Acc. 2

Standard costs are used in companies for a variety of reasons. Which of the following is a benefit of using standard costs?

all of these choices

Understanding how costs behave is useful to management for

all of these choices

The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is termed _____ analysis.

cost-volume-profit

A cost that has characteristics of both a variable cost and a fixed cost is called a

mixed cost

Which of the following standards represents levels of operation that can be attained with reasonable effort?

normal

Which of the following variances refers to when the price paid per unit differs from the standard price per unit for direct materials?

price

Which of the following is an example of a mixed cost?

rental costs of $10,000 per month plus $0.30 per machine hour of use

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 purposes of analysis, mixed costs are

separated into their variable and fixed cost components

A report that summarizes actual costs, standard costs, and the differences for the units produced is called a

budget performance report

Cost behavior refers to the manner in which a cost

changes as a related activity changes

As production increases, the fixed cost per unit

decreases

The total manufacturing cost variance consists of

direct materials cost variance, direct labor cost variance, and factory overhead cost variance

The three most common cost behavior classifications are

fixed costs, variable costs, and mixed costs

A favorable cost variance occurs when

standard costs are more than actual costs

Contribution margin is

the excess of sales revenue over variable cost

Costs that vary in total in direct proportion to changes in an activity level are called ______ costs.

variable