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