Questions from Cost Accounting

Q: When inputs are substitutable, how can the direct materials efficiency variance

When inputs are substitutable, how can the direct materials efficiency variance be decomposed further to obtain useful information?

Q: Benchmarking against other companies enables a company to identify the lowest-

Benchmarking against other companies enables a company to identify the lowest-cost producer. This amount should become the performance measure for next year.” Do you agree?

Q: What is the key difference between a static budget and a flexible

What is the key difference between a static budget and a flexible budget?

Q: Describe the steps in developing a flexible budget.

Describe the steps in developing a flexible budget.

Q: How might a manager gain insight into the causes of a flexible

How might a manager gain insight into the causes of a flexible-budget variance for direct materials?

Q: List three causes of a favorable direct materials price variance.

List three causes of a favorable direct materials price variance.

Q: Define cost object and give three examples.

Define cost object and give three examples.

Q: Define cost–volume–profit analysis.

Define cost–volume–profit analysis.

Q: Comprehensive Care Nursing Home is required by statute and regulation to maintain

Comprehensive Care Nursing Home is required by statute and regulation to maintain a minimum 3 to 1 ratio of direct service staff to residents to maintain the licensure associated with the Nursing Home...

Q: How does a job-costing system differ from a process-

How does a job-costing system differ from a process-costing system?