Do other companies like BMW Group use
manufacturing standards to guide
performance at their plants?
1. Yes
2. No
50%
1
50%
2
Do you think there is a uniform set of
manufacturing standards which companies in
similar industries (i.e. automotive industry) use to
guide their performance?
1. Yes
2. No
50%
1
50%
2
Do companies like BMW Group have software or
computer programs to help set manufacturing
standards for their companies?
1. Yes
2. No
50%
1
50%
2
Do you think that it is difficult for a company
like BMW Group to create manufacturing
standards for its plant?
1. Yes
2. No
50%
1
50%
2
Do companies like BMW Group change their
manufacturing standards each year?
1. Yes
2. No
50%
1
50%
2
Only manufacturing businesses use
standards to evaluate and control
operations.
1. True
2. False
50%
1
50%
2
Standards should be revised when
they differ from actual costs.
1. True
2. False
50%
1
50%
2
Standards can be used for direct materials,
direct labor and factory overhead.
1. True
2. False
50%
1
50%
2
An unfavorable cost variance results when
actual cost is greater than standard cost at
actual volumes.
1. True
2. False
50%
1
50%
2
A flexible budget may be used to determine
the impact of changing production on fixed
and variable factory overhead costs.
1. True
2. False
50%
1
50%
2
A nonfinancial performance measure is a
performance measure expressed in dollars.
1. True
2. False
50%
1
50%
2
The total factory overhead cost variance is the
difference between the actual factory overhead
and the total overhead applied to production.
1. True
2. False
50%
1
50%
2
Accounting systems that use standards
for manufacturing costs are called
25%
25%
25%
25%
1. process cost
systems
2. job order cost
systems
3. budget cost systems
4. standard cost
systems
1
2
3
4
The difference between a standard
cost and an actual cost is called a
25%
1.
2.
3.
4.
25%
25%
25%
cost variance
cost inefficiency
control variable
marginal variance
1
2
3
4
Standards that can be achieved only under
perfect operating conditions are called
25%
25%
25%
25%
1. normal standards
2. ideal standards
3. currently
attainable
standards
4. variable standards
1
2
3
4
Standards for direct materials, direct labor
and factory overhead can be separated into
which two components?
25%
25%
25%
25%
1. a price standard and
a normal standard
2. a price standard and
a variable standard
3. a price standard and
a quantity standard
4. a normal standard
and a quantity
standard
1
2
3
4
A budget performance report
will show
25%
25%
25%
25%
1. actual costs
2. standard amounts
for the actual level of
production achieved
3. the difference
between actual
costs and standard
amounts
4. all of these choices
1
2
3
4
The total direct materials cost variance
is equal to the
1.
2.
3.
4.
sum of the materials
price variance and the
materials quantity
variance
difference between the
materials price variance
and the materials
quantity variance
product of the materials
price variance and the
materials quantity
variance
materials price variance
25%
1
25%
2
25%
3
25%
4
The total direct labor cost variance is equal
to the
1.
2.
3.
4.
direct labor rate
variance
sum of the direct labor
rate variance and the
direct labor time
variance
difference between the
direct labor rate
variance and the direct
labor time variance
product of the direct
labor rate variance and
the direct labor time
variance
25%
1
25%
2
25%
3
25%
4
In computing factory overhead variances, the
standard overhead rate is determined by
1.
2.
3.
4.
dividing the budgeted
factory overhead costs by
the standard amount of
productive activity
dividing the budgeted
factory overhead costs by
the actual amount of
productive activity
dividing the actual factory
overhead costs by the
standard amount of
productive activity
dividing the actual factory
overhead costs by the
actual amount of productive
activity
25%
1
25%
2
25%
3
25%
4
The variable factory overhead controllable
variance is
1.
2.
3.
4.
the difference between the standard
variable overhead incurred at actual
production and the budgeted
variable overhead for actual
production
the sum of the actual variable
overhead incurred and the
budgeted variable overhead for
actual production
the difference between the actual
variable overhead incurred and the
budgeted variable overhead for
actual production
the difference between the actual
variable overhead incurred and the
standard variable overhead for
actual production
25%
1
25%
25%
2
3
25%
4
If the standard fixed overhead exceeds the
budgeted overhead at 100% of normal
capacity, the variance is
25%
25%
25%
25%
1. not able to be
determined
2. neither favorable
nor unfavorable
3. unfavorable
4. favorable
1
2
3
4