Managerial Financial Accounting Chapter 11 Practice Quiz

Managerial Financial Accounting Chapter 11 Practice Quiz -...

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Self Study, Question 1
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Correct. The labor rate variance is equal to the difference between the actual wage rate and the standard wage rate times the standard number of labor hours worked. True False Self Study, Question 2 Correct. Standard cost variances provide definitive evidence that costs are "out of control" and managers are not performing effectively. False True Self Study, Question 3 Correct. A favorable variance may be due to a poor management decision. False
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True Self Study, Question 4 Correct! The primary benefit of a standard costing system is a benchmark value called "standard value" that other acquisitions are compared against. The difference between the standard and the actual value is called a variance. Variances can be evaluated for cause. What is the primary benefit of a standard costing system? It is inexpensive and easy to use. It records costs at what should have been incurred. It allows for a comparison of differences between actual and standard costs. It is easy to implement Self Study, Question 5 Correct! There are many acceptable methods of establishing standard costs but applying a constant growth or inflation amount is not one of them.
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This note was uploaded on 08/02/2011 for the course MGMT 425 taught by Professor Brown/lexner during the Spring '11 term at Kaplan University.

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Managerial Financial Accounting Chapter 11 Practice Quiz -...

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