Podcast
Questions and Answers
Which factor is determined first when setting direct materials standards?
Which factor is determined first when setting direct materials standards?
- Price
- Quality (correct)
- Quantity
- Management's estimates of demand
What should direct labor standards be adjusted for?
What should direct labor standards be adjusted for?
- Expected breaks, downtime, and spoilage (correct)
- Learning and productivity factors
- Quality of the workforce
- Amount and price of labor cost
What is a key consideration in developing direct materials standards?
What is a key consideration in developing direct materials standards?
- Allowing for losses, spoilage, scrap, and waste (correct)
- Alignment with management's estimates of demand
- Setting price to align with company strategy
- Selecting vendors in the supply chain
How can direct labor standards be aligned with the strategic goals of a company?
How can direct labor standards be aligned with the strategic goals of a company?
What should be factored into standard setting and variance analysis for direct labor?
What should be factored into standard setting and variance analysis for direct labor?
Why are direct materials standards determined first before quantity and price?
Why are direct materials standards determined first before quantity and price?
Which of the following is the most accurate way of determining standard costs according to the text?
Which of the following is the most accurate way of determining standard costs according to the text?
In the context of determining standard costs, which method is most expensive to implement according to the text?
In the context of determining standard costs, which method is most expensive to implement according to the text?
What is a disadvantage of using historical data to determine standard costs as mentioned in the text?
What is a disadvantage of using historical data to determine standard costs as mentioned in the text?
Benchmarking can help a firm maintain its competitive edge. What kind of data does benchmarking typically involve?
Benchmarking can help a firm maintain its competitive edge. What kind of data does benchmarking typically involve?
standard costs are derived from which source?
standard costs are derived from which source?
Activity-based costing is described as the most thorough costing method. What aspect makes it less favorable for companies?
Activity-based costing is described as the most thorough costing method. What aspect makes it less favorable for companies?
Which of the following is true regarding responsibility accounting?
Which of the following is true regarding responsibility accounting?
In the context of Cost Standards in Budgeting, what is the main purpose of standards?
In the context of Cost Standards in Budgeting, what is the main purpose of standards?
What is an example of an uncontrollable cost that might be excluded from a manager's performance report?
What is an example of an uncontrollable cost that might be excluded from a manager's performance report?
How do fixed costs differ from variable costs in relation to controllability?
How do fixed costs differ from variable costs in relation to controllability?
Which statement accurately describes the relationship between indirect costs and controllability?
Which statement accurately describes the relationship between indirect costs and controllability?
What is the primary difference between direct and indirect costs in terms of their impact on budgets?
What is the primary difference between direct and indirect costs in terms of their impact on budgets?
