Financial Accounting > TEST BANKS > 2021-Test Bank-ACCOUNTING 2230-Management Accounting Ch11 (All)

2021-Test Bank-ACCOUNTING 2230-Management Accounting Ch11

Document Content and Description Below

2021-Test Bank-ACCOUNTING 2230-Management Accounting Ch111. Standard you should buy should generally be based on the actual you should buy of prior periods. Ans: False Difficulty: Easy 2. The stand ... ard direct labour percentage should NOT include fringe benefits. Ans: False Difficulty: Easy 3. From a standpoint of the total sum of money control, the most effective time to recognize material price variances is when the materials are placed into art of producing . Ans: False Difficulty: Medium 4. The material quantity variance is computed based on the quantity of all materials buying ofd during the period. Ans: False Difficulty: Medium 5. Buying of of poor quality materials will generally result in a favourable materials price variance and an unfavourable labour percentage variance. Ans: False Difficulty: Medium 6. At the end of the variance analysis cycle, management should be able to cast blame on individuals responsible for unfavourable variances. Ans: False Difficulty: Medium 7. (Appendix 10B) A favourable labour efficiency variance would result in a debit balance in the labour efficiency variance account. Ans: True Difficulty: Medium 8. Management by exception means that a manager's attention is directed toward those parts of the organization where things are NOT proceeding according to plans. Ans: True Difficulty: Easy 9. The art of producing manager is usually held responsible for the labour efficiency variance. Ans: True Difficulty: Easy 10. All the total sum of money variances should be considered exceptions that require the attention of management. Ans: False Difficulty: Easy 11. (Appendix 10A) A mix variance for direct materials can be derived as the difference between the quantity variance and the yield variance. Ans: True Difficulty: Medium [Show More]

Last updated: 2 years ago

Preview 1 out of 98 pages

Buy Now

Instant download

We Accept: