FinalExamBus4113 - BUS 4113 Finance and Accounting for...

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BUS 4113 Finance and Accounting for Managers Final Exam – Chapters 12-17 Instructor: Dr. Jonathan Schultz Name: 1. A budget for a single unit of a product or service is called a: a. fixed cost. b. real cost. c. standard cost. d. full cost. 2. Which of the following statements regarding the standard cost for direct materials is true ? a. It would be used on a static budget but not a flexible budget. b. It would consist of two components – a standard quantity and a standard price. c. It must be determined after materials are purchased for the year. d. It can not be determined if a company uses a just-in-time inventory system. 3. Variance analysis compares: a. practical standards and ideal standards. b. static budgets and flexible budgets. c. standard costs and actual costs. d. product costs and period costs. 4. Which of the following statements is false regarding task analysis? a. It examines the production process in detail. b. It may involve the use of engineers. c. It emphasizes what it should cost to produce a product rather than historical costs. d. It uses actual historical data in the determination of current standard costs.
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Task analysis: a. is used to determine the tasks that production employees should complete on a daily basis. b. is used to evaluate employee performance. c. is used to set standard costs. d. emphasizes the historical costs of a product. 6. A(n) ____ is attainable only when near-perfect conditions exist. a. practical standard b. ideal standard c. static budget d. favorable variance 7. In most companies, machines break down occasionally and employees are often less than perfect. Which type of standard acknowledges these characteristics when determining the standard cost of a product? a. Efficiency standard b. Ideal standard c. Practical standard d. Budgeted standard 8. The type of budget that budgets standard costs for the actual volume of production is a: a. standard budget. b. static budget. c. flexible budget. d. fixed budget. Rogers Rods & Reels Ltd. manufactures and sells various types of fishing equipment. At the end of 2008, Rogers had estimated for the production and sale of 15,000 bass fishing rods. Each rod has a standard calling for 1.5 pounds of direct material at a standard cost of $8.00 per pound and 15 minutes of direct labor time at a standard cost of $.18 per minute. During 2009, Rogers actually produced and sold 16,000 rods. These 16,000 rods had an actual direct materials cost of $179,200 (25,600 pounds at $7.00 per pound) and an actual direct labor cost of $44,800 (224,000 minutes at $.20 per minute). Each rod sells for $50. 9. Refer to the Rogers Rods & Reels Ltd. information above. What is Rogers' net income (loss) based on a flexible budget? a.
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FinalExamBus4113 - BUS 4113 Finance and Accounting for...

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