5 Written Questions
5 Matching Questions
- Marketing and Administrative costs are treated like
- cost variance analysis
- flexible budget line
- flexible production budget
- Two Major categories of costs
- a expected monthly costs at different output levels.
- b production costs. Variable costs are expected to change as activity changes.
- c outlay costs and opportunity costs
- d standard input price times standard quantity of input allowed for actual good output
- e comparison of actual input amounts and prices with standard input amounts and prices
5 Multiple Choice Questions
- factor that causes, or "drives" an activity's costs
- materials that can be identified directly with the product at reasonable cost
- prime and conversion costs
- operating profit equals total revenue less total costs
- with two or more alternatives, costs that differ among or between alternatives
5 True/False Questions
T statistic → difference between planned result and actual outcome. Uses this difference to evaluate the performance of individuals and business units and identify possible sources of deviations between budgeted and actual performance.
The direct labor price variance is caused by → the difference between actual and standard labor costs per hour.
first in, first out (FIFO) process costing → inventory method whereby the first goods received are the first one charged out when sold or transferred. keeps the costs and the work separate and, in effect, computes separate unit costs for the two periods
Relevant range → labor that can be identified directly with the product at reasonable cost
Relevant range → activity levels within which a given total fixed cost or unit variable cost will be unchanged