Accounting > QUESTIONS & ANSWERS > CPA - BEC - COST ACCOUNTING & PERFORMANCE MEASUREMENT|QUESTIONS WITH CORRECT ANSWERS (All)

CPA - BEC - COST ACCOUNTING & PERFORMANCE MEASUREMENT|QUESTIONS WITH CORRECT ANSWERS

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What is a standard cost? Correct Answer a predetermined target cost what are variances? Correct Answer when comparing standard costs to actual costs, any differences will produce variances. what... are the four different types of variance in direct material and direct labor? Correct Answer 1. direct materials price variance 2. direct materials usage variance 3. direct labor rate variance 4. direct labor efficiency variance what is the predetermined overhead rate? Correct Answer AKA the standard fixed application rate or SFR. This is the amount of overhead that should be applied what should actual costs not be compared with? Correct Answer Actual costs should not be compared with normal costs since normal costs are based on expected production. what should actual costs be compared with if the production amount differ? Correct Answer the standard costs allowed based on actual production. Favorable and unfavorable Correct Answer if actual are less than standard this is favorable. Unless you are considering prices, then actual less than standard this is unfavorable. What department is responsible the direct materials pricing variance? Correct Answer Purchasing What department is responsible the direct materials usage variance? Correct Answer Production What department is responsible the direct labor rate variance? Correct Answer Personnel What department is responsible the direct labor efficiency variance? Correct Answer Production how is overhead applied calculated? Correct Answer the amount of the base time the POHR NOTE Correct Answer the POHR includes both the fixed and variable components [Show More]

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