MBA Accounting Final Exam – Questions With Clear, Accurate Solutions

MBA Accounting Final Exam – Questions With Clear,
Accurate Solutions

Standard Cost is Correct Answer - is a budget for the production of one
unit of product or service

perfect or ideal standard is Correct Answer - one that can be attained
only under nearly perfect operating conditions

practical standards are Correct Answer - expected to be attained under
normal conditions

cost variance is Correct Answer - the difference between the actual cost
with the budgeted or standard cost

Direct materials price variance is Correct Answer - actual
quantity(actual price - standard price)

Direct materials quantity variance is Correct Answer - standard price
(actual quantity - standard quantity)

Direct labor rate variance is Correct Answer - actual hours (actual rate -
standard rate)

Direct labor efficiency variance is Correct Answer - standard rate (actual
hours - standard hours)

Flexible budgets are Correct Answer - not based on only one level of
activity and is a detailed plan for controlling overhead costs that is valid in the
firms relevant range of activity

static budget is Correct Answer - based on a particular planned level of
activity

what are the three characteristics of information Correct Answer - must
be relevant accurate and timely