Which of the following statements concerning standards is correct?A. Standards cannot be used for product costing and cash budgeting.B. Standards should not be attainable by the average worker.C. Variances are likely when compared to actual results.D. All of the above.E. None of these.

The correct answer is:C. Variances are likely when compared to actual results. Explanation:A.…

Answered: Which of the following statements…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 23MC: Which of the following is a possible cause of an unfavorable material quantity variance? A....

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The following sentences relate to achieving the financial goal of cost minimization. Which of the following statements is FALSE? a. Prioritizing which costs to incur relates to the operating decisions of the firm only.b. Savings is the end product of this financial goal.c. There is a need to determine cost.d. Controling costs involves addressing unfavorable cost variances.
Identify the cause of an unfavorable variance in profit. a.Actual labor cost is lower than budget b.Actual sales volume is higher than budget c.Actual material cost is higher than budget d. Actual sales price is higher than budget Explain
Which of the following is a limitation of the gross profit variance analysis? a. The level of efficiency of asset management department can be computed and shown b. It includes the amount invested in working capital c. Measurement of the impact on gross profit due changes in sales volume cannot be determined d. The gross profit variance analysis is limited only on the product attributable cost
In a business, who is responsible for setting standard costs, and who is responsible if there are negative variances from standard?
Which of the following is a possible cause of an unfavorable material price variance? A. purchasing too much material B. purchasing higher-quality material C. hiring substandard workers D. buying substandard material
What is the cause of an unfavorable volume variance? Does the volume variance convey any meaningful information to managers?
What are some possible reasons for a material price variance? A. substandard material B. labor rate increases C. labor rate decreases D. labor efficiency
Does the volume variance convey any meaningful information to managers?
Which of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring substandard workers B. making too many Units C. buying higher-quality material D. paying too much for workers
3. Some people suggest that the direct labor rate variance is never controllable. Do you agree or disagree? Give reasons to sSupport your answer.
Which of the following statement is true under the Standared Costing System a. Standard cost is a predetermined or estimated cost to either produce a good/service or perform an activity within the organisation b. Standard cost is a control technique that helps to report variances by comparing pre-set standards to actual costs to facilitate action c. Both a and b are incorrect d. Both a and b are correct
1. What is the activity variance for the revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect) 2. What is the spending variance for the cost of ingredients? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effec

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Which of the following statements concerning standards is correct? A. Standards cannot be used for product costing and cash budgeting. B. Standards should not be attainable by the average worker. C. Variances are likely when compared to actual results. D. All of the above. E. None of these.