Lecture 4- Standard costing and variance analysis (1)

Description

Highers Accounting and Finance (Year 2) (Management Accounting for Performance and Decision Making) Quiz on Lecture 4- Standard costing and variance analysis (1), created by George Mariyajohnson on 24/07/2020.
George Mariyajohnson
Quiz by George Mariyajohnson, updated more than 1 year ago
George Mariyajohnson
Created by George Mariyajohnson over 4 years ago
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Resource summary

Question 1

Question
First step in how a standard costing system operates is [blank_start]standard costs[blank_end] for the [blank_start]actual output[blank_end] are recorded for each [blank_start]operation[blank_end] for each [blank_start]responsibility centre[blank_end]
Answer
  • standard costs
  • actual output
  • operation
  • responsibility centre

Question 2

Question
Second step in how standard costing system operates is [blank_start]actual costs[blank_end] for each [blank_start]operation[blank_end] are [blank_start]traced[blank_end] to each [blank_start]responsibility centre[blank_end]
Answer
  • actual costs
  • operation
  • traced
  • responsibility centre

Question 3

Question
Third step in how standard costing system operates is [blank_start]standard[blank_end] and [blank_start]actual costs[blank_end] are [blank_start]compared[blank_end]
Answer
  • standard
  • actual costs
  • compared

Question 4

Question
Fourth step in how standard costing system operates is [blank_start]variances[blank_end] are investigated and [blank_start]corrective action[blank_end] is taken where [blank_start]appropriate[blank_end]
Answer
  • variances
  • corrective action
  • appropriate

Question 5

Question
Fifth step in how standard costing system operates is [blank_start]standards[blank_end] are monitored and [blank_start]adjusted[blank_end] to [blank_start]reflect[blank_end] changes in [blank_start]standard usage[blank_end] and/or [blank_start]prices[blank_end]
Answer
  • standards
  • adjusted
  • reflect
  • standard usage
  • prices

Question 6

Question
One approach used for setting standard costs is using [blank_start]past historical[blank_end] records to [blank_start]estimate[blank_end] [blank_start]labour[blank_end] and [blank_start]materials[blank_end] usage
Answer
  • past historical
  • estimate
  • labour
  • materials

Question 7

Question
Another approach used for setting standard costs is [blank_start]based[blank_end] on [blank_start]engineering studies[blank_end]
Answer
  • based
  • engineering studies

Question 8

Question
Engineering studies- [blank_start]Detailed studies[blank_end] of each operation, based on [blank_start]careful specifications[blank_end] of materials, [blank_start]labour[blank_end] and equipment and on [blank_start]controlled[blank_end] observations of [blank_start]operations[blank_end]
Answer
  • Detailed studies
  • careful specifications
  • labour
  • controlled
  • operations

Question 9

Question
One purpose of standard costing system is providing [blank_start]predictions[blank_end] that can be used for [blank_start]decision making[blank_end] purposes
Answer
  • predictions
  • decision making

Question 10

Question
Another purpose of standard costing system is setting [blank_start]challenging target[blank_end] which [blank_start]individuals[blank_end] are [blank_start]motivated[blank_end] to achieve
Answer
  • challenging target
  • individuals
  • motivated

Question 11

Question
Third purpose of standard costing system is providing [blank_start]reliable[blank_end] and [blank_start]convenient[blank_end] source of [blank_start]data[blank_end] for [blank_start]budget preparation[blank_end]
Answer
  • reliable
  • convenient
  • data
  • budget preparation

Question 12

Question
Fourth purpose of standard costing system is acting as [blank_start]control device[blank_end] by highlighting [blank_start]activities[blank_end] that do not [blank_start]conform[blank_end] to plan and therefore [blank_start]alerting managers[blank_end] to situations that may be [blank_start]out of control[blank_end] and in need of [blank_start]corrective action[blank_end]
Answer
  • control device
  • activities
  • conform
  • alerting managers
  • out of control
  • corrective action

Question 13

Question
Fifth purpose of standard costing system is [blank_start]simplifying task[blank_end] of [blank_start]tracing[blank_end] costs to [blank_start]products[blank_end] for profit [blank_start]measurement[blank_end] and [blank_start]inventory valuation[blank_end] purpose
Answer
  • simplifying task
  • tracing
  • products
  • measurement
  • inventory valuation

Question 14

Question
Standard cost- [blank_start]Target costs[blank_end] that are [blank_start]predetermined[blank_end] and should be [blank_start]incurred[blank_end] under [blank_start]efficient operating[blank_end] conditions
Answer
  • Target costs
  • predetermined
  • incurred
  • efficient operating
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