BEC Cost Accounting and Management Accounting 2

Question 1

Which type of budget is adjusted to reflect the actual level of activity achieved during a period?

Accepted Answer

Flexible budget

Answer

Static budget

Answer

Master budget

Answer

Cash budget

Question 2

The standard cost for direct materials is $5.00 per unit and the actual cost was $5.50 per unit. This results in a:

Accepted Answer

Unfavorable price variance

Answer

Favorable price variance

Answer

Favorable quantity variance

Answer

Unfavorable efficiency variance

Question 3

A favorable direct labor efficiency variance indicates that:

Accepted Answer

Actual hours worked were less than standard hours allowed

Answer

Actual hours worked exceeded standard hours allowed

Answer

Actual wage rate was lower than the standard wage rate

Answer

Actual units produced exceeded budgeted units

Question 4

Which component of the master budget is typically prepared first?

Accepted Answer

Sales budget

Answer

Production budget

Answer

Cash budget

Answer

Purchases budget

Question 5

The overhead spending variance measures the difference between:

Accepted Answer

Actual overhead and flexible budget overhead

Answer

Flexible budget overhead and applied overhead

Answer

Actual overhead and static budget overhead

Answer

Applied overhead and budgeted overhead at standard hours

Question 6

A company's direct labor standard is 2 hours per unit at $15/hour. Actual production was 12,000 units; actual hours were 25,000 at $14/hour. What is the direct labor rate variance?

Accepted Answer

$25,000 favorable

Answer

$25,000 unfavorable

Answer

$30,000 favorable

Answer

$30,000 unfavorable

Question 7

Zero-based budgeting (ZBB) requires managers to:

Accepted Answer

Justify all budget expenditures from scratch each period

Answer

Adjust the prior year's budget by an inflation factor

Answer

Base budgets on a fixed percentage of forecasted sales

Answer

Carry forward unused budget amounts to the following period