Questions from Managerial Accounting

Q: Before a direct materials purchases budget can be prepared, you should

Before a direct materials purchases budget can be prepared, you should first a. prepare a sales budget. b. prepare a production budget. c. decide on the desired ending inventory of materials. d. obta...

Q: The first step in preparing the sales budget is to

The first step in preparing the sales budget is to a. prepare a sales forecast. b. review the production budget carefully. c. assess the desired ending inventory of finished goods. d. talk with past...

Q: Which of the following is needed to prepare the production budget?

Which of the following is needed to prepare the production budget? a. Direct materials needed for production b. Direct labor needed for production c. Expected unit sales d. Units of materials in endi...

Q: Historical experience should be used with caution in setting standards because

Historical experience should be used with caution in setting standards because a. they may perpetuate operating inefficiencies. b. ideal standards are always better than historical standards. c. they...

Q: The standard direct labor hours allowed is computed as a

The standard direct labor hours allowed is computed as a. Unit Labor Standard × Actual Output. b. Unit Labor Standard × Practical Output. c. Unit Labor Standard × Standard Output. d. Unit Labor Stand...

Q: The materials usage variance is computed as a. (

The materials usage variance is computed as a. (SP × AQ) - (AP × SQ). b. (AP × AQ) - (SP × SQ). c. (SP × AQ) - (SP × SQ). d. (AP × SP) - (AQ × SQ). e. None of these.

Q: Investigating variances from standard is a. always done.

Investigating variances from standard is a. always done. b. done if the variance is inside an acceptable range. c. not done if the variance is expected to recur. d. done if the variance is outside th...

Q: Responsibility for the materials price variance typically belongs to a

Responsibility for the materials price variance typically belongs to a. production. b. purchasing. c. marketing. d. personnel. e. the chief executive officer (CEO).

Q: La Cucina Company sells kitchen supplies and housewares. Lava stone is

La Cucina Company sells kitchen supplies and housewares. Lava stone is used in production of molcajetes (mortars and pestles used in the making of guacamole) and is purchased from external suppliers....

Q: The materials price variance is usually computed a. when

The materials price variance is usually computed a. when goods are finished. b. when materials are issued to production. c. when materials are purchased. d. after suppliers are paid. e. as none of th...