Questions from Cost Accounting


Q: Actual direct materials costs differ from the master budget amount. What

Actual direct materials costs differ from the master budget amount. What are the three primary reasons for the difference?

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Q: The Treadway Commission commented that a factor giving rise to fraud is

The Treadway Commission commented that a factor giving rise to fraud is the existence of pressures on division managers to achieve unrealistic profit objectives. Why might top management set unrealist...

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Q: Fixed cost variances are computed differently from the variances for variable costs

Fixed cost variances are computed differently from the variances for variable costs. Why?

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Q: What complication arises in variance analysis when the number of units produced

What complication arises in variance analysis when the number of units produced is not the same as the number of units sold?

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Q: How would you recommend accounting for variances at the end of the

How would you recommend accounting for variances at the end of the year? Why?

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Q: If the sales activity or materials efficiency variance is zero, there

If the sales activity or materials efficiency variance is zero, there is no reason to compute a mix and quantity or yield variance. True or false?

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Q: Why is it important for management accountants to understand business strategy?

Why is it important for management accountants to understand business strategy?

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Q: Why is worker involvement important to an organization’s success?

Why is worker involvement important to an organization’s success?

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Q: What are the advantages of financial measures of performance? What are

What are the advantages of financial measures of performance? What are the advantages of nonfinancial measures of performance?

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Q: What are the five basic kinds of decentralized units in a responsibility

What are the five basic kinds of decentralized units in a responsibility accounting system?

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