Questions from Managerial Accounting

Q: Pleni Company produces 18-ounce boxes of a wheat cereal in

Pleni Company produces 18-ounce boxes of a wheat cereal in three departments: Mixing, Cooking, and Packaging. During August, Pleni produced 125,000 boxes with the following costs: Required: 1. Calcu...

Q: Responsibility for the volume variance usually is assigned to a

Responsibility for the volume variance usually is assigned to a. the accounting department. b. the receiving department. c. the shipping department. d. the manufacturing department. e. none of these....

Q: In activity-based budgeting, costs are classified as variable or

In activity-based budgeting, costs are classified as variable or fixed with respect to a. only the units budgeted. b. only the units produced. c. only the units sold. d. only the direct labor hours....

Q: Activity flexible budgeting makes it possible to a. predict

Activity flexible budgeting makes it possible to a. predict what activity costs will be as activity output changes. b. improve traditional budgetary performance reporting. c. enhance the ability to m...

Q: In activity-based budgeting, flexible budget formulas are created using

In activity-based budgeting, flexible budget formulas are created using a. only unit-level drivers. b. only nonunit-level drivers. c. both unit-level and nonunit-level drivers. d. only direct labor h...

Q: To create a meaningful performance report, actual costs and expected costs

To create a meaningful performance report, actual costs and expected costs should be compared a. at the actual level of activity. b. weekly. c. at the budgeted level of activity. d. at the average le...

Q: To help deal with uncertainty, managers should use a

To help deal with uncertainty, managers should use a. an after-the-fact flexible budget. b. a master budget. c. a static budget. d. a before-the-fact flexible budget. e. none of these.

Q: To help assess performance, managers should use a.

To help assess performance, managers should use a. a static budget. b. a master budget. c. a continuous budget. d. a before-the-fact flexible budget. e. none of these.

Q: A firm comparing the actual variable costs of producing 10,000

A firm comparing the actual variable costs of producing 10,000 units with the total variable costs of a static budget based on 9,000 units would probably see a. no variances. b. small favorable varia...

Q: The total variable overhead variance is the difference between a

The total variable overhead variance is the difference between a. the budgeted variable overhead and the actual variable overhead. b. the actual variable overhead and the applied variable overhead. c...