Podcast
Questions and Answers
What is the primary purpose of establishing standard costs?
What is the primary purpose of establishing standard costs?
- To determine the selling price of products
- To set performance standards for managers
- To provide a basis for intelligent forecasting and projections (correct)
- To evaluate the efficiency of the purchasing department
Which department is primarily responsible for determining the standard unit cost of materials?
Which department is primarily responsible for determining the standard unit cost of materials?
- Purchasing department (correct)
- Production department
- Accounting department
- Industrial engineering department
If the selling price of the product 'Tungki' is ₱150 per unit, what is the contribution margin per unit?
If the selling price of the product 'Tungki' is ₱150 per unit, what is the contribution margin per unit?
- ₱116.80
- ₱33.20
- ₱283.20
- ₱50.00 (correct)
If the fixed costs for the Tungki product line are ₱500,000 per month, what is the breakeven point in units?
If the fixed costs for the Tungki product line are ₱500,000 per month, what is the breakeven point in units?
If the actual direct labor cost for the Tungki product is ₱10 per hour, what is the labor rate variance per unit?
If the actual direct labor cost for the Tungki product is ₱10 per hour, what is the labor rate variance per unit?
What is the primary use of standard costs in pricing?
What is the primary use of standard costs in pricing?
What is the purpose of using standard costs in interim reporting?
What is the purpose of using standard costs in interim reporting?
Which type of variance is the broadest and represents the difference between actual and budgeted amounts?
Which type of variance is the broadest and represents the difference between actual and budgeted amounts?
What does the flexible budget variance represent?
What does the flexible budget variance represent?
Which of the following statements about variances is true?
Which of the following statements about variances is true?
How is a variance classified if the actual cost exceeds the standard cost?
How is a variance classified if the actual cost exceeds the standard cost?
What is the primary use of standard costs in cost-volume-profit analysis?
What is the primary use of standard costs in cost-volume-profit analysis?
Which of the following is NOT a use of standard costs mentioned in the text?
Which of the following is NOT a use of standard costs mentioned in the text?
What is the purpose of using standard costs in responsibility accounting?
What is the purpose of using standard costs in responsibility accounting?
How are standard costs used in performance evaluation?
How are standard costs used in performance evaluation?
What is the purpose of using standard costs in budgeting?
What is the purpose of using standard costs in budgeting?
What should be done with standard costs regularly?
What should be done with standard costs regularly?
