This multiple choice question (MCQ) test covers standard costing. You can use it to assess how much you've learned about this topic. 1. Standards represent a benchmark or a norm Standards relate to input quantity Standards relate to input cost All of the above See answer 2. Attainable standards Budget standards Ideal standards Practical standards See answer 3. (AQ X AP) - (AQ X SP) (AP X SP) - (AQ X SP) (AQ X SP) - (SQ X SP) (AQ X SP) - (AQ X AP) See answer 4. Line workers Production supervisors Purchasing managers Production schedulers See answer 5. (AQ X AP) - (AQ X SP) (AP X SP) - (AQ X SP) (AQ X SP) - (SQ X SP) (AQ X SP) - (AQ X AP) See answer 6. 2,000.00 favorable 5,000.00 favorable 5,000.00 unfavorable See answer 7. $7.20 $6.80 $7.00 Cannot be determined from the information given None of the above See answer 8. It provides a basis for sensible cost comparisons It enables managers to manage by exception It provides a means of performance evaluation and employee rewards It is usually less expensive than actual or normal costing It works well with long and short product life cycles See answer 9. It is more expensive than other systems Variances calculated under standard costing come too late to be useful It can cause dysfunctional behavior in a JIT/FMS environment Traditional cost variances are not tied to specific product lines None of the above See answer 10. 20,000 unfavorable 25,000 favorable 25,000 unfavorable Cannot be determined from the information provided None of the above See answer View Results Next Quiz: Variable Costing MCQs Standard Costing MCQs FAQs What factors should be considered when making decisions in accounting? When making decisions in accounting, it is essential to consider all relevant factors. Some of the factors that may be considered include the company’s financial position, Cash Flow, profitability, and business strategy. What are some common accounting decisions? In accounting, decision-making is the process of choosing between two or more courses of action to achieve the desired outcome. Factors that should be considered when making decisions include the company’s financial position, Cash Flow, profitability, and business strategy. Accountants use the information to make decisions by analyzing data and trends to make informed decisions to help the company achieve its goals. How do accountants make decisions? Accountants use the information to make decisions by analyzing data and trends. This information can come from Financial Statements, internal reports, surveys, and other sources. By analyzing this data, accountants can make informed decisions to help the company achieve its goals. What are some common accounting decision-making models? Common accounting decision-making models include the rational decision model, the incremental decision model, and the satisficing decision model. Each of these models has its own set of steps that should be followed when deciding. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
This multiple choice question (MCQ) test covers standard costing. You can use it to assess how much you've learned about this topic. 1. Standards represent a benchmark or a norm Standards relate to input quantity Standards relate to input cost All of the above See answer 2. Attainable standards Budget standards Ideal standards Practical standards See answer 3. (AQ X AP) - (AQ X SP) (AP X SP) - (AQ X SP) (AQ X SP) - (SQ X SP) (AQ X SP) - (AQ X AP) See answer 4. Line workers Production supervisors Purchasing managers Production schedulers See answer 5. (AQ X AP) - (AQ X SP) (AP X SP) - (AQ X SP) (AQ X SP) - (SQ X SP) (AQ X SP) - (AQ X AP) See answer 6. 2,000.00 favorable 5,000.00 favorable 5,000.00 unfavorable See answer 7. $7.20 $6.80 $7.00 Cannot be determined from the information given None of the above See answer 8. It provides a basis for sensible cost comparisons It enables managers to manage by exception It provides a means of performance evaluation and employee rewards It is usually less expensive than actual or normal costing It works well with long and short product life cycles See answer 9. It is more expensive than other systems Variances calculated under standard costing come too late to be useful It can cause dysfunctional behavior in a JIT/FMS environment Traditional cost variances are not tied to specific product lines None of the above See answer 10. 20,000 unfavorable 25,000 favorable 25,000 unfavorable Cannot be determined from the information provided None of the above See answer View Results