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.
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