Which of the following variances is least helpful for control purposes
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Chapter 7 Show
— Standard Costing and Variance Analysis MULTIPLE CHOICE 1. A primary purpose of using a standard cost system is a. to make things easier for managers in the production facility. b. to provide a distinct measure of cost control. c. to minimize the cost per unit of production. d. b and c are correct. ANS: B PTS: 1 DIF: Easy OBJ: 7-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 2. The standard cost card contains quantities and costs for a. direct material only. b. direct labor only. c. direct material and direct labor only. d. direct material, direct labor, and overhead. ANS: D PTS: 1 DIF: Easy OBJ: 7-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 3. Which of the following statements regarding standard cost systems is true? a. Favorable variances are not necessarily good variances. b. Managers will investigate all variances from standard. c. The production supervisor is generally responsible for material price variances. d. Standard costs cannot be used for planning purposes since costs normally change in the future. ANS: A PTS: 1 DIF: Easy OBJ: 7-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 4. In a standard cost system, Work in Process Inventory is ordinarily debited with a. actual costs of material and labor and a predetermined overhead cost for overhead. b. standard costs based on the level of input activity (such as direct labor hours worked). c. standard costs based on production output. d. actual costs of material, labor, and overhead. ANS: C PTS: 1 DIF: Easy OBJ: 7-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting anon_395346352 67% found this document useful (3 votes) 20K views 12 pages Standard Costs and
Variance Analysis 1236548541.docx © © All Rights Reserved DOCX, PDF, TXT or read online from Scribd Did you find this document useful?Is this content inappropriate?Report this Document 67% found this document useful (3 votes) 20K views12 pages Standard Costs and Variance Analysis 1236548541Original Title:Standard Costs and Variance Analysis 1236548541.docx Uploaded byanon_395346352 Full description Question added by Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)
The least significant for cost control is fixed overhead volume variance. Aside from it offers only little information as compared to what can be determined from the other variances, its role is usually a balancing agent when computing fixed overhead variance.  by mohammed elkheniny , Financial Controller , DNM FOR SPINNING& WEAVING AND DYING C. Fixed Overhead Volume Variance is least significant for cost control. by Muhammad Aqeel , Assistant Manager Accounts and Finance , Abu Dhabi Medical Industries LLC by georgei assi , مدير حسابات , المجموعة السورية The correct answer answer C Popular SearchesMore Questions Like This
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you. Which variance is least relevant for control purposes?Fixed Overhead Volume Variance is least significant for cost control.
How variance analysis is helpful in cost control?Comparing Budget with Actual: Variance analysis helps in managing the annual budgets by monitoring the budgeted figures and comparing it with the actual revenue/cost. In case of companies which are project or program driven, the financial data are evaluated at key intervals such as month close, quarter end, etc.
Which of the following variances is most controllable by the production control supervisor?Which one of the following variances is most controllable by the production control supervisor? Materials usage variance.
Why is it called non controllable variance?The production volume variance is said to be uncontrollable because control refers to influence over actual costs. The production volume variance is the difference between budgeted and applied fixed overhead.
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