Chapter10.Standard Costing, Operational Performance Measures, and the Balanced Scorecard

Chapter10.Standard Costing, Operational Performance Measures, and the Balanced Scorecard

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Chapter 10: Standard Costing, Operational Performance Measures, and the Balanced Scorecard MULTIPLE CHOICE QUESTIONS 1. A standard cost: A. is the "true" cost of a unit of production. B. is a budget for the production of one unit of a product or service. C. can be useful in calculating equivalent units. D. is normally the average cost within an industry. E. is almost always the actual cost from previous years. Answer: B LO: 1 Type: RC 2. Which of the following is a predetermined estimated cost that can be used in the calculation of a variance? A. Product cost. B. Actual cost. C. Standard cost. D. Differential cost. E. Marginal cost. Answer: C LO: 1 Type: RC 3. Variances are computed by taking the difference between which of the following? A. Product cost and period cost. B. Actual cost and differential cost. C. Price factors and rate factors. D. Actual cost and standard cost. E. Product cost and standard cost. Answer: D LO: 1 Type: RC 4. The term "management by exception" is best defined as: A. choosing exceptional managers. B. controlling actions of subordinates through acceptance of management techniques. C. investigating unfavorable variances. D. devoting management time to investigate significant variances. E. controlling costs so that non-zero variances are treated as "exceptional." Answer: D LO: 1 Type: RC, N Chapter 10 11
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5. Which of the following are methods for setting standards? A. Analysis of historical data. B. Task analysis. C. Task analysis and the analysis of historical data. D. Matrix application forms. E. Goal congruence. Answer: C LO: 2 Type: RC 6. Which of the following individuals is least likely to become involved in the setting of either direct material standards or direct labor standards? A. The purchasing manager. B. A production supervisor. C. An engineer. D. A machine operator. E. A company's president. Answer: E LO: 2 Type: N 7. A perfection standard: A. tends to motivate employees over a long period of time. B. is attainable in an ideal operating environment. C. would make allowances for normal amounts of scrap and waste. D. is generally preferred by behavioral scientists. E. will result in a number of favorable variances on a performance report. Answer: B LO: 2 Type: RC, N 8. Consider the following statements: I.Behavioral scientists find that perfection standards often discourage employees and result in low worker morale. II.Practical standards are also known as attainable standards. III.Practical standards incorporate a certain amount of inefficiency such as that caused by an occasional machine breakdown. Which of the above statements is (are) true? A. I only. B. II only. C. III only. D. II and III. E. I, II, and III. Answer: E LO: 2 Type: RC 12 Hilton, Managerial Accounting, Seventh Edition
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9. Which of the following would be considered if a company desires to establish a series of practical manufacturing standards? A.
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This note was uploaded on 02/11/2012 for the course ECON 101 taught by Professor Smith during the Spring '09 term at Harvard.

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Chapter10.Standard Costing, Operational Performance Measures, and the Balanced Scorecard

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