ACCTMIS 2300 EXAM 3 2025 QUESTIONS
AND ANSWERS
Standards - ANS benchmarks or "norms" for measuring performance
cost standards - ANS specify how much should be paid for each unit of the input eg. how
much should we pay for a unit of DM
quantity standards - ANS specify how much of an input should be used to make a product or
provide a service eg. how much DM should we use to make a product
standard cost card - ANS a detailed listing of the standards that should go into making a unit
of product
variance - ANS difference bt actual results and standards
price variance - ANS diff bt actual price and standard price
quantity variance - ANS diff bt actual quantity and standard quantity
1. diff managers are responsible for buying and for using the inputs. eg purchasing manager
responsible for price paid for DM and production manager responsible for quantity of DM used
to make goods
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, 2. buying and using activities occur at diff points in time - ANS why are price and quantity
variance determined separately? (2 reasons)
unfavorable variance - ANS positive variance is referred to as:
favorable variance - ANS negative variance is referred to as:
1. DM price variance
2. DM quantity variance - ANS 2 DM variances:
(AQ x AP ) - (AQ x SP) - ANS DM price variance equation
AQ of DM PURCHASED - ANS what does AQ in DM price variance represent
(AQ x SP) - (SQ x SP)
SQ = (standard quantity of DM per unit x number of units produced) - ANS DM quantity
variance equation
AQ of DM USED IN PRODUCTION - ANS what does AQ in DM quantity variance represent
diff bt what was actually paid to purchase DM and what should have been paid according to
standards - ANS what does DM price variance measure
diff bt how much in DM was actually used in production and how much should have been used
according to standards - ANS what does DM quantity variance measure
1. DL rate variance
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AND ANSWERS
Standards - ANS benchmarks or "norms" for measuring performance
cost standards - ANS specify how much should be paid for each unit of the input eg. how
much should we pay for a unit of DM
quantity standards - ANS specify how much of an input should be used to make a product or
provide a service eg. how much DM should we use to make a product
standard cost card - ANS a detailed listing of the standards that should go into making a unit
of product
variance - ANS difference bt actual results and standards
price variance - ANS diff bt actual price and standard price
quantity variance - ANS diff bt actual quantity and standard quantity
1. diff managers are responsible for buying and for using the inputs. eg purchasing manager
responsible for price paid for DM and production manager responsible for quantity of DM used
to make goods
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 1
, 2. buying and using activities occur at diff points in time - ANS why are price and quantity
variance determined separately? (2 reasons)
unfavorable variance - ANS positive variance is referred to as:
favorable variance - ANS negative variance is referred to as:
1. DM price variance
2. DM quantity variance - ANS 2 DM variances:
(AQ x AP ) - (AQ x SP) - ANS DM price variance equation
AQ of DM PURCHASED - ANS what does AQ in DM price variance represent
(AQ x SP) - (SQ x SP)
SQ = (standard quantity of DM per unit x number of units produced) - ANS DM quantity
variance equation
AQ of DM USED IN PRODUCTION - ANS what does AQ in DM quantity variance represent
diff bt what was actually paid to purchase DM and what should have been paid according to
standards - ANS what does DM price variance measure
diff bt how much in DM was actually used in production and how much should have been used
according to standards - ANS what does DM quantity variance measure
1. DL rate variance
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 2
