_____ Variances are computed by taking the difference between which of the follo
ID: 381629 • Letter: #
Question
_____ Variances are computed by taking the difference between which of the following?
A. Product cost and period cost.
B. Actual cost and differential cost.
C. Price factors and rate factors.
D. Product cost and standard cost.
E. Actual cost and standard cost.
_____ The individual generally responsible for the direct-material price variance is the:
A. sales manager.
B. production supervisor.
C. purchasing manager.
D. finance manager.
E. head of the human resources department.
_____ At the end of the accounting period, most companies close variance accounts to:
A. Raw-Material Inventory.
B. Work-in-Process Inventory.
C. Finished-Goods Inventory.
D. Cost of Goods Sold.
E. Income Summary.
_____ A production supervisor generally has little influence over the:
A. direct-material quantity variance.
B. direct-labor efficiency variance.
C. number of units produced.
D. direct-material price variance.
E. All of these items.
_____ When using a balanced scorecard, a company's market share is typically classified as an element of the firm's:
A. financial performance measures.
B. customer performance measures.
C. learning and growth performance measures.
D. internal-operations performance measures.
E. interdisciplinary performance measures.
Explanation / Answer
Answer to the first question is
E) Actual cost and standard cost ( A varience is the difference between actual cost and standard cost against which it can be measured , it is done by analyst to measure performance of revenue and expenses )
Answer to the second question is
C) Purchasing manager ( Purchase is the main factor which determines direct material price varience , a lower purchase price will result in favourable direct material price variance and higher the purchase price will result in unfavourable direct material price variance )
Answer to the third question is
D) Cost of Goods sold ( at the end of accounting period to accomplish the temprary closure of accounts most companies close accounts by debiting and crediting variance to cost of goods sold )
Answer to the fourth question is
C) Number of units produced ( It is a duty/role of production supervisor hence it has a influence over it )
Answer to fifth question is
A) financial performance measure
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