ACNT 2309 Ch. 9 T/F

A mix variance is created whenever the actual mix of inputs is equal to the standard mix.

False

A yield variance occurs when the actual output is the same as the standard output.

False

Price standards specify amounts and quantity standards specify prices.

False

The standard cost sheet shows costs needed to make many units of output

False

Unfavorable variances occur whenever actual prices or usage are less than standard prices or usage, and the opposite for a favorable variance.

False

All variances accounts are closed out at the end of the year.

True

In standard costing, overhead is applied to a product by debiting work in process and crediting variable and fixed overhead control accounts.

True

Standard costs are the amount that should be spent to produce a product or service.

True

The most detailed method to compute overhead variances is the four-variance method.

True

The total budget variances are categorized into price variances and usage variances.

True

The variable overhead efficiency variance measures the change in variable overhead consumption due to efficient or inefficient use of the activity driver used to assign overhead costs to products.

True