The direct materials mix variance is the sum of the

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54) The direct materials mix variance is the sum of the direct materials mix variances for each input.
Diff: 1 Terms: direct materials mix variance Objective: A AACSB:Reflective thinking55) An unfavorable direct materials mix variance results when cheaper direct materials are substituted for more expensive direct materials.
Diff: 2 26
Terms: direct materials mix variance Objective: A AACSB:Ethical reasoning27
56) A favorable direct materials yield variance results when less direct materials are used than planned.
Diff: 2 Terms: direct materials mix variance, direct materials yield variance Objective: A AACSB:Reflective thinking57) Costs which are not economically feasible to trace but which are related to a cost object are known as:
Diff: 1 Terms: cost allocation Objective: 1 AACSB:Reflective thinking58) Any item for which a separate measurement of cost is desired is known as: A)28
Diff: 1 Terms: cost object Objective: 1 AACSB:Reflective thinking 59) Indirect costs:
Diff: 3 Terms: indirect costs Objective: 29
1 AACSB:Reflective thinking60) All of the following illustrate purposes for allocating costs to cost objects EXCEPT to:
Diff: 2 Terms: cost allocation Objective: 1 AACSB:Reflective thinking30
61) Which of the following illustrates a purpose for allocating costs to cost objects? A)to motivate managers and employees B)to provide information to customers C)to determine a selling price the market will bear D)to measure liabilities Answer:A
Diff: 2 Terms: cost allocation Objective: 1 AACSB:Reflective thinking62) The costs of all six value-chain functions should be included when determining:
Diff: 3 Terms: 31
cost allocation Objective: 1 AACSB:Reflective thinking

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