NAME $q,$

Chapter $7$ material $-$ Flexible Budgets and Direct$-$Cost Variances

$10.$ A primary benefit of a standard costing system is that

A$)$ it reports costs to external users at what should have been incurred

B$)$ it provides feedback on differences between actual and standard costs

C$)$ compared to actual costing and normal costing it is easy to implement

D$)$ compared to actual costing and nomal costing it is inexpensive and easy to use

$11.$ A basic difference between a static budget and a flexible budget is that a static budget is

A$)$ prepared for performance evaluation, while a flexible budget is prepared for planning purposes

B$)$ reporting the costs that should have been incurred given the achieved level of production

C$)$ for an entire production facility, but a flexible budget is applicable to single departments only

D$)$ prepared before the period begins, while a flexible budget is prepared after the period ends

$12.$ At the end of the reporting period, XYZ Co$.$ has unadjusted COGS of $$100,000.$ The following variances were recorded during the period:

$\backslash$table$[[$Direct material purchase price variance,$$20,000$ Unfavorable$],[$Direct material efficiency variance,$$30,000$ Favorable$],[$Direct labor price variance,$$10,000$ Favorable$],[$Direct labor efficiency variance,$$5,000$ Favorable$]]$

Adjusted COGS at the end of the period will be:

A$.$ $$75,000$

B$.$ $$95,000$

C$.$ $$100,000$

D$.$ $$105,000$

E$.$ $$125,000$