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