Questions from Managerial Accounting

Q: Explain how standard material prices and quantities are set

Explain how standard material prices and quantities are set

Q: What is the interpretation of the direct-material quantity variance?

What is the interpretation of the direct-material quantity variance?

Q: What manager is usually in the best position to influence the direct

What manager is usually in the best position to influence the direct-material quantity variance?

Q: Why do proponents of absorption costing argue that absorption costing is preferable

Why do proponents of absorption costing argue that absorption costing is preferable as the basis for pricing decisions?

Q: What is the interpretation of the direct-labor efficiency variance?

What is the interpretation of the direct-labor efficiency variance?

Q: What manager is generally in the best position to influence the direct

What manager is generally in the best position to influence the direct-labor efficiency variance?

Q: Refer to Review Question 10–11. Why does an analogous

Refer to Review Question 10–11. Why does an analogous question not arise in the context of the direct-labor variances?

Q: Describe five factors that managers often consider when determining the significance of

Describe five factors that managers often consider when determining the significance of a variance.

Q: Distinguish between static and flexible budgets.

Distinguish between static and flexible budgets.

Q: Explain the advantage of using a flexible budget.

Explain the advantage of using a flexible budget.