5 Written questions
5 Matching questions
- LABOR EFFICIENCY VARIANCE is a measure of
- standard costing
- Cost structure
- Target price
- Full absorption costing
- a an accounting method that assigns costs to cost objects at predetermined amounts
- b all fixed and variable costs are product costs, all others are period costs
- c price based on customers' perceived value for the product and the price that competitors charge
- d proportion of an organization's fixed and variable costs to its total costs
- e labor productivity. it is one of the closely watched variances because production managers usually can control it.
5 Multiple choice questions
- agreement among business competitors to set prices at a particular level
- costs required to obtain customer orders and provide customers with finished products, including advertising, sales commissions, and shipping costs
- cost of job determined by standard (budgeted) direct material and labor cost plus overhead applied using a predetermined overhead rate and a standard (budgeted) allocation base.
- variance that, taken alone, reduces the operating profit.
- period of time over which capacity will be unchanged, usually one year
5 True/False questions
Opportunity cost → sum of direct labor and manufacturing overhead
Managerial costing → costs required to obtain customer orders and provide customers with finished products, including advertising, sales commissions, and shipping costs
Underapplied overhead → variance that, taken alone, results in an addition to operating profit
Nonmanufacturing costs are expensed → periodically
Sunk costs → costs incurred in the past that cannot be changed by present or future decisions