acc final

The variable overhead efficiency variance is caused by the difference between which of the following?

actual and standard allocation base

The variable overhead rate variance is caused by the sum between which of the following?

actual and standard overhead rates

The fixed factory overhead variance is caused by the difference between which of the following?

actual fixed overhead and applied fixed overhead

In a centralized organization, where are goals established?

at the highest level of the organization and promoted downward

This standard is set at a level that may be reached with reasonable effort.

attainable standard

This variance is the difference involving spending less, or using less than the standard amount.

favorable variance

Which of the following is a possible cause of an unfavorable labor rate variance?

hiring higher-quality workers at a higher wage

What are some possible reasons for a labor rate variance?

hiring of less qualified workers

Which of the following is a possible cause of an unfavorable labor efficiency variance?

hiring substandard workers

An example of an uncontrollable cost would include all of the following except ________.

hourly rate of pay for the company's purchasing manager

What are some possible reasons for a material price variance?

substandard material

Managers in decentralized organizations make decisions relating to all of the following except ________.

the company's stock price

A transfer pricing structure that considers the opportunity costs of selling to internal rather than external customers uses ________.

the general transfer pricing approach

Why does a company use a standard costing system?

to identify variances from actual cost that assist them in maintaining profits

This standard is set at a level that could be achieved if everything ran perfectly.

ideal standard

This variance is the difference involving spending more or using more than the standard amount.

unfavorable variance

When is the direct labor time variance unfavorable?

when the actual quantity used is greater than the standard quantity

When is the material quantity unfavorable?

when the actual quantity used is greater than the standard quantity

A flexible budget ________.

predicts estimated revenues and costs at varying levels of production

When is the labor rate variance favorable?

when the actual price is less than the standard price

When is the material price variance favorable?

when the actual price is less than the standard price

When is the labor rate variance unfavorable?

when the actual price paid is greater than the standard price

When is the material price variance unfavorable?

when the actual price paid is greater than the standard price

Internal costs that are charged to the segments of a business are called ________.

allocated costs

In centralized organizations, primary decisions are made by ________.

an individual at the top of the organization

Which of the following is not a common goal of an organization?

being acquired by another business

Which of the following is not a type of responsibility center?

concentrated cost center

Costs that a company or manager can influence are called ________.

controllable costs

What are some reasons for a material quantity variance?

more qualified workers

Which of the following is a possible cause of an unfavorable material quantity variance?

purchasing substandard material

A key advantage of a decentralized organization is ________.

quicker decisions and response time

A responsibility center structure that considers investments made by the operating segments by using a common cost of capital percentage is called ________.

residual income

A system that establishes financial accountability for operating segments within an organization is called ________. a financial statement

responsibility accounting

An important goal of a responsibility accounting framework is to help ensure which of the following?

segment and company financial goals are congruent.

Organizational charts ________.

show the structure of an organization

When is the material quantity variance favorable?

when the actual quantity used is less than the standard quantity

Which of the following does not describe a management control system?

a system that only measures profitability

Strategic decisions occur ________.

infrequently and involve long-term decisions

What are some possible reasons for a direct labor time variance?

less qualified workers

A transfer pricing arrangement that uses the price that would be charged to an external customer is a ________.

market-based approach

Segments are uniquely identifiable components of the business and can be categorized by all of the following except ________.

number of employees

A responsibility center in which managers are held accountable for both revenues and expenses is called a ________.

profit center

Which of the following is a possible cause of an unfavorable material price variance?

purchasing higher-quality material

When is the direct labor time variance favorable?

when the actual quantity used is less than the standard quantity