Question 1

This standard is set at a level that may be reached with reasonable effort.

unattainable standard

attainable standard

ideal standard

variance from standard

Question 2

This variance is the difference involving spending more or using more than the standard amount

variance

favorable variance

unfavorable variance

no variance

Question 3

What are some possible reasons for a material price variance?

substandard material

labor efficiency

labor rate decreases

labor rate increases

Question 4

When is the material price variance favorable?

when the actual quantity used is greater than the standard quantity

when the actual quantity used is less than the standard quantity

when the actual price paid is greater than the standard price

when the actual price is less than the standard price

Question 5

When is the material quantity variance favorable?

when tha actual quantity used is greater than the standard quantity

when the actual quantity used is less than the standard quantity

when the actual price is less than the standard price

when the actual price paid is greater than the standard price

Question 6

What are some possible reasons for a labor rate variance?

hiring of less qualified workers

utilities usage change

matrial price increase

an excess of material usage

Question 7

When is the labor rate variance favorable?

when the actual price paid is greater than the standard price

when the actual quantity used is less than the standard quantity

when the actual quantity use is greater than the standard quantity

when the actual price is less than the standard price

_______________________________________________________________________________________

Question 8

Which of the following doesnotdescribe a management control system?

a system that only measures profitability

implements a company's strategic goals

monitors a company's strategic goals

establishes a company's strategic goals

Question 9

A key advantage of a decentralized organization is ________________________

quicker decisions and response time

the ease of aligning segment and company goals

duplication of efforts

increased administrative costs

Question 10

Segments are uniquely identifiable components of the business and can be categorized by all of the followingexcept_____________________________

number of employees

products produced

services provided

geographical location

Question 11

In a centralized organization, where are goals established?

outside the organization based on best practices in the industry

by each segment of the organization

at the highest level of the organization and promoted downward

at the lower level of the organization and promoted upward

Question 12

Which of the following isnota type of responsibility center?

concentrated cost center

investment center

profit center

cost center

Question 13

A responsibility center in which managers are held accountable for both revenues and expenses is called a ________________________.

cost center

revenue center

profit center

discretionary cost center

Question 14

An important goal of a responsibility accounting framework is to help insure which of the following?

deciosion-making is made by the top executives

segment and company financial goals are congruent

identification of operating segments that should be closed

investments made by each segment are minimized