When is the material quantity unfavorable? A.When the actual quantity used is less than the standard quantity B.When the actual price is less than the standard price C.When the actual quantity used is greater than the standard quantity D.When the actual price paid is greater than the standard price

Q: Which of the following is a limitation of the gross profit variance analysis? a. The level of…

A: Gross profit variance analysis refers to the analysis which dealt with how to analyse the profit…

Q: Cost accounting is used as a means of fixing a selling price. Select one: True False

A: Cost accounting is a method of managerial accounting which is used to calculate the total production…

Q: Which of the following best defines the concept of a relevant cost? a. A past cost that is the same…

A: Relevant Cost: it is a cost which is used for taking decision  for the business management. this…

Q: When deciding to accept a special order, which of the following costs are relevant? A. Fixed…

A: When business has option to select one alternative out of two alternatives, then alternative which…

Q: In which of the following methods, issues of materials are priced at pre-determined rate? None of…

A: Standard price method : Under this method, materials are priced at some predetermined rate of…

Q: “The production-volume variance should always be written off to Cost of Goods Sold.” Do you agree?…

A: Production-Volume Variance:It reports that amount which is result of the multiplication of…

Q: e is said to be a normal good if indifference e indifference curves associated with chang on-labor…

A: Leisure refers to the time when an employee is not working can spend the desired time in their own…

Q: Which of the following statements is false? a. The sum of the cost price variance and cost volume…

A: In general terms, Variance refers to the spread between the numbers or the relationship existing. It…

Q: Historical cost numbers are usually harder than market value numbers select one :   True, or ,…

A: Historical cost: It is the cost of acquisition or say it is initial cost when customer acquire the…

Q: The materials price variance should be computed when materials are purchased. Group of answer…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: An unfavorable materials quantity variance indicates that: Multiple Choice standard material price…

A: Unfavorable materials quantity variance means materials has been used more than what was estimated.…

Q: Which of the statement is not a true reflection of Target cost gap ?   The target cost gap =…

A: target costing is the way in which deriving of a target cost is done to set the production manager…

Q: Which of the following is a possible cause of an unfavorable material price variance? A. purchasing…

A: Material price variance exists when the actual purchase price is different from the standard…

Q: In a special order situation, any fixed cost associated with the order is irrelevant cost. True…

A: This question deals with the concept of relevant costing. In special order situation, generally all…

Q: Which of the following material issue pricing method considers the prices as well as the quantities…

A: Solution: "Weighted average method"  considers the prices as well as the quantities of materials…

Q: A variance is the difference between standards and actual performance with materials, labor, or…

A: Variances are used for the performance evaluation of the company. It is also helpful for the…

Q: The difference between actual Cost and standard cost is known as: Variance Profit Differential Cost

A: Standard Cost is the estimated cost expected to be incurred by the company for a particular period…

Q: The lower of cost or net realizable value basis of valuing inventories is example of ? A) the cost…

A: Principles of conservation is one of basic principles of valuing in accounting of inventory.

Q: Which of the following conditions might cause a material variance?

A: Direct material cost variance: direct material variance is variance analysis done by the company to…

Q: Identify the cause of an unfavorable variance in profit. a.Actual labor cost is lower than budget…

A: The variance is the difference between the actual data and standard output of the production.

Q: 1) When is the labor variance unfavorable? a) When the actual price is greater than the standard…

A: AN UNFAVORABLE LABOR VARIANCE MEANS THAT YOU HAVE PAID WORKER'S MORE THAN ANTICIPATED AND THIS IS…

Q: em. b. the amount of money paid for an item,

A: Opportunity costs are the potential gains that an individual, investor, or corporation foregoes by…

Q: When is the direct labor time variance favorable? A. when the actual quantity used is greater than…

A: Direct labor time is the time taken o produce a unit . when the standard time to make a unit is less…

Q: An indirect cost for one cost object can be a direct cost for a different cost object. True False

A: Direct cost means the cost directly related with cost object and indirect cost means which can not…

Q: Which of the following equations can be used to compute a materials price variance (where AQ =…

A: Introduction: Materials price variance: Difference between the Standard price and actual price and…

Q: When contribution is positive but equal to fixed cost: a. There is loss less than fixed cost b.…

A: Contribution is the amount received after the variable cost or direct costs are deducted from Sales,…

Q: What is an outlier? List some possible causes of outliers. How should outliers be handled in cost…

A: Outlier: An outlier is a data point that falls far away from the other points in the scatter diagram…

Q: If the materials price variance is favorable but the materials quantity variance is unfavorable,…

A:

Q: a. What is the material price usage, material quantity and total material variance D. What is the…

A: Material Quantity Variance-It is the difference between how much material used and expected to be…

Q: When is the direcet labor time variance unfavorable? A. when the actual quantity used is greater…

A: Direct Labor Rate Variance: The difference between the actual cost of direct labor and the standard…

Q: Which of the following material issue pricing method follows only on the average purchasing price of…

A: The average price is taken in weighted and simple average price method.

Q: Assume the variance is material, what is the adjustment of the cost of good sold

A: Solution: Adjustment cost of goods sold vary based on variance in material or immaterial.

Q: Abnormal spoilage is properly classified as a. deferred charge b. extraordinary item c. period…

A: Abnormal Spoilage is considered as a period cost. ... Because abnormal losses are not necessary to…

Q: Explain why the quantity purchased (PQ) is used in computing the direct-material purchase price…

A: Material Purchase Price Variance: Material price variance occurs when the price expected to purchase…

Q: Would a production manager be equally responsible for anunfavorable materials price variance and an…

A:

Q: Which of the following statements is false?   a. The price factor refers to the change in selling…

A: Gross profit variance measures the ability of a business to generate a profit from its sales and…

Q: In average cost method the new average price is calculated: a) after the whole period, b) after each…

A: Average cost method is used in the valuation of inventory. Under this method, cost per unit is…

Q: A standard price is the same as a(n): budgeted price actual price budgeted quantity favorable price…

A: Standard costing is a technique for which predetermined standard costs for direct material, direct…

Q: Whether any of the following sentences about abnormal spoiling is true? a. It is considered to be…

A: Spoilage refers to materials or components that have been damaged, which are beyond the capacity of…

Q: In the economic order quantity (EOQ) model, where does the optimal order quantity value exist? O…

A: Economic order quantity is the quantity that is best for the business. It shows the quantity where…

Q: Which of the following material issue pricin method considers the prices as well as the quantities…

A: Solution: "Weighted average method" considers the prices as well as the quantities of materials…

Q: Help question 26

A: False. Price variance is the difference between the Standard price of the input and actual price of…

Q: Which one of these is an example of a variable cost? a. Raw material expenses b. Depreciation costs…

A: Variable costs are those costs which incurs in proportion to volume of goods sold or services that…

Q: Which of the following is true of abnormal spoilage? a. It is considered to be part of production.…

A: Spoilage refers to materials or components that have been damaged, which are beyond the capacity of…

Q: Which of the following underlying assumptions form(s) the basis for gross profit variance analysis?…

A: Gross profit is the difference between the sales revenue and cost of goods sold. Gross profit…