A standard is informed by the budget but is calculated at a more aggregate level.

1 point

True

False

2.

Question 2

Which of the following best describes variance analysis?

1 point

Provides a comparison of actual and expected performance

Prevents management by exception

Performed at the aggregate level

Used only on an annual basis

3.

Question 3

A static cost budget presents how much a company should have spent given the actual level of production.

1 point

True

False

4.

Question 4

Which of the following is true regarding an unfavorable variance?

1 point

All else equal, actual net income is greater than budgeted net income.

All else equal, actual net income is less than budgeted net income.

It is more important than favorable variances.

It reflects an undesirable scenario.

5.

Question 5

Which of the following is true regarding cost variances?

1 point

All variances are investigated.

Materials and labor variances are usually caused by separate sources.

Variances can be interrelated in some way.

An unfavorable materials spending variance usually results in an unfavorable materials efficiency variance.

6.

Question 6

Fixed cost variances only include spending variances.

1 point

True

False

7.

Question 7

Revenue variances are classified as favorable or unfavorable via different reasoning than cost variances.

1 point

True

False

8.

Question 8

Which of the following are revenue variances?

1 point

Sales efficiency variance

Sales input variance

Sales price variance

Sales mix variance