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1. By convention, short-term financial control is accomplished by all of the following except:
2. Operational control systems can be distinguished from financial control systems:
3. Traditional financial control systems have recently been criticized because:
4. One important short-term financial goal for a company is to earn the projected operating
income for the period. Attainment of this goal is measured by comparing the actual operating
income for the period to the:
5. The total operating income variance for a period reveals whether a company has
achieved:
6. Another name for the total operating income variance for a period is:
7. Authoritative standards (within the context of a standard cost system) are determined
primarily by:
8. The arrival of new manufacturing techniques such as automation, flexible manufacturing
systems, and cluster or cell manufacturing has:
9. An organization's overall management accounting and control system:
10. The "flexible budget" can best be described as a budget that adjusts:
11. Which of the following is different in a flexible budget compared to the master budget for
a period?
12. A flexible-budget variance measures the impact on short-term operating profit of:
13. A "standard cost" is a predetermined amount (e.g., cost) that:
14. Differences in expectation levels lead to two basic types of standards in a standard cost
system:
15. An organization planned to use $82 of direct material per unit of output, but it actually
used $80 per unit. During this period, the company planned to make 1,200 units, but actually
produced only 1,000 units. The flexible budget amount for direct materials cost is:
16. A "currently attainable standard" emphasizes:
17. An organization subject to intense competitive pressures would most likely use:
18. A materials usage variance can be caused by all of the following except:
19. A standard cost system:
20. A ______________ standard gets progressively tighter over time.
21. Using continuous-improvement standards likely has the effect(s) all of the following
except:
22. A total variable cost variance (such as for direct materials) can be broken down into
separate variances that evaluate:
23. A standard cost system should be designed to generate and report cost and revenue
variances:
24. Which of the following benefits is not typically associated with a move to a just-in-time
(JIT) manufacturing system?
25. The way managers and employees who are affected by a standard cost system perceive
the system will:
26. For control purposes, it is usually preferable to calculate the materials price variance:
27. The difference between the actual operating income of the period and master budget
operating income for the period is the:
28. The difference between the actual sales volume for a period and the flexible-budget
sales volume is:
29. The difference between the flexible-budget operating income and the actual operating
income in a period is the:
30. The difference between the total actual sales revenue of a period and the total flexible-
budget sales revenue for the units sold during the period is the:
31. A standard that assumes perfect implementation and maximum efficiency is called a(n):
32. A standard that sets the performance criterion at a level that workers with proper training
and experience can attain most of the time without extraordinary effort is a(n):
33. The total variable cost flexible-budget variance for any given period:
34. The total variable cost flexible-budget variance includes all of the following except:
35. Which one of the following is the difference in direct material costs between the actual
cost incurred during the period and the total standard cost in the flexible budget for the units
manufactured during the period?
36. For a direct material, which one of the following is the difference between the actual and
standard unit price of the direct material multiplied by the actual quantity of the material
purchased?
37. Which one of the following, for each direct material used in production, is the difference
between the actual units of material used and the total standard units of the direct material that
should have been used for the units of the product manufactured during the period, multiplied by
the standard unit price of the direct material?
38. Which one of the following is the difference between the actual hourly wage rate and the
standard hourly wage rate, multiplied by the actual number of direct labor hours worked during a
period?
