Week 9 exercise Std Costing Exercises[2]

Week 9 exercise Std Costing Exercises[2] - TI1l review...

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TI1l' review questions arc short quest ions that enahle you to assess your understanding of the main topics included in the chapter. The numbers in parentheses pnlvide you with the page numbers to rder to if you cannot answer a specific qUL'stion. The review prohlems arc more complex and require you to relate and apply the chapter content to various business problems. The prohlems are graded by their !c\'el of diffi- culty. 'The multiple-choice questions are the least demanding and normally take less than 10 minutes to complete. Fully worked solutions to the review problems are provided in a separate section at the end of the book. For those questions in the white box the worked solutions arc provided in the Studellt·.1 Mil/l/1ll1 accompanying this book. FUl1her review problems for this chapter arc availahle on the accompanying website . The answers to these problems arc available for lecturers on the lecturer's password protected section of the wehsite. The wehsite also includes over 30 case study problems. A list of these cases is provided in Pal1 Seven of this hook. Several cases are relevant to the content of this chapter. Examples include Anjo Ltd" Boston Creamery and the Berkshire Toy Company. 19 1 Under what circumstances will a (a) material mix and (b) material yield variances arise? (pp. 77/\-/\0) 19.2 Distinguish between a sales margin mix and sales margin quantity variance. (pp. 782-84) 19,3 Why do some writers criticize separating sales variances into their price and quantity elements? (pp. 785-/\fJ) 19.4 Describe the two alternative way of accounting for the variances at the end of an accounting period. (pp. 793-(5) 19.5 What are planning variances') Why arc they separately identified') (pp. 795-(8) Why is it advocated that opportunity costs should be incorporated into variance analysis') (pp. 798-(9)
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Describe three approaches for determining when a variance should bc investigated. (p. 80 l) Explain why actual performance might differ from standard performance. (pp. 802-(3) What is a statistical control char!') How can it bc applied to determining when;, variance should be investigated') (pp. 805-(6) Explain why the usefulness of standard costing in a modern business envirOnnh'!I! had been questioned. (pp. 809-11) 12 Explain the future potential role of standard costing in a modern busincss environment. (pp. 812-13) 13 How can standard costing be used when ABC has bcen implcmented') (PI). 813- 14 Why is standard costing more suitable for controlling the cost of unit-level activities? (p. 813) ..•• 9.15 Advanced The following data are to be used to answer questions (a) and (b) below SW pic manufactures a product known as the TRD I 00 by mixing two materials. The standard material cost per unit of the TRD I 00 is as follows: Material X Material Y 12 litres @ £2.50 18 litres @ £3.00 In October 2002. the actual mix used was 984litres of X and 1230 litres ofY. The actual output was 72 units of TRD I 00.
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