Diff 3 objective 6 aacsb analytical thinking 35

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Elementary and Intermediate Algebra: Algebra Within Reach
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Chapter 3 / Exercise 81
Elementary and Intermediate Algebra: Algebra Within Reach
Larson
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Diff: 3Objective: 6AACSB: Analytical thinking
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Elementary and Intermediate Algebra: Algebra Within Reach
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Chapter 3 / Exercise 81
Elementary and Intermediate Algebra: Algebra Within Reach
Larson
Expert Verified
35) Waddell Productions makes separate journal entries for all cost accounting-related activities. It uses a standard cost system for all manufacturing items. For the month of June, the following activities have taken place: Direct Manufacturing Materials Purchased$300,000Direct Manufacturing Materials Used250,000Direct Materials Price Variance10,000unfavorable(at time of purchase)Direct Materials Efficiency Variance15,000favorableDirect Manufacturing Labor Price Variance6,000favorableDirect Manufacturing Labor Efficiency Variance4,000favorableDirect Manufacturing Labor Payable170,000Required: Record the necessary journal entries to close the accounts for the month. Answer: Materials Control300,000Direct Manufacturing Materials Price Variance10,000Accounts Payable Control310,000Work-in-Process Control265,000Direct Materials Efficiency Variance15,000Materials Control250,000Work-in-Process Control180,000Direct Manufacturing Labor Price Variance6,000Direct Manufacturing Labor Efficiency Variance4,000Wages Payable Control170,000Diff: 3Objective: 6AACSB: Application of knowledge36) Describe the purpose of variance analysis. Answer: Variance analysis should help the company learn about what happened and how to perform better and should not be a tool in playing the "blame game." Diff: 2Objective: 6AACSB: Analytical thinking
7.7 Objective 7.71) The process by which a company's products or services are measured relative to the bestpossible levels of performance is known as ________.A) efficiency B) benchmarking C) a standard costing system D) variance analysis Answer: BDiff: 1Objective: 7AACSB: Analytical thinking2) Benchmarking is a process ________. A) in which overhead costs are absorbed into units of output, or 'jobs'B) in which a firm's performance levels are compared against the best levels of performance in competing companies or in companies having similar processesC) which is based on calculating the breakeven point and analyzing the consequences of changes in various factors calculating the breakeven pointD) in which the underlying processes of an organization is optimized using a systematic approach to achieve more efficient goalsAnswer: BDiff: 2Objective: 7AACSB: Analytical thinking3) Which of the following statements is true of benchmarking?A) It is a systematic approach of optimizing business processes.B) It fails to help to improve organizational performance as benchmarking data does not provide insight into why costs or revenues differ across companies.C) It is difficult to ensure that the benchmark numbers are comparable due to the existenceof differences across companies.D) It considers four major business aspects such as financial, customer, internal business processes, and learning and growth.Answer: CDiff: 2Objective: 7AACSB: Analytical thinking4) When benchmarking, management accountants are most valuable when they ________.

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