ACC 350 Week 9 Quiz 6-Strayer Latest

This paper of ACC 350 Week 9 Quiz 6 - Strayer Latest comprehends:
Objective 7.1

1) A master budget is ________.
A) a budget which starts from a zero base
B) developed for a period for a planned output
C) developed at the end of a period
D) a type of flexible budget

2) Management by exception is a practice whereby managers focus more closely on ________.
A) a static budget
B) areas that are not operating as anticipated
C) activity-based costing
D) exceptional decision-making models

3) A variance is ________.
A) the difference between actual fixed cost per unit and standard variable cost per unit
B) the standard units of inputs for one output
C) the difference between an actual result and a budgeted performance
D) the difference between actual variable cost per unit and standard fixed cost per unit

4) An unfavorable variance indicates that ________.
A) the actual costs are less than the budgeted costs
B) the actual revenues exceed the budgeted revenues
C) the actual units sold are less than the budgeted units
D) the budgeted contribution margin is more than the actual amount

5) A favorable variance indicates that ________.
A) budgeted costs are less than actual costs
B) actual revenues exceed budgeted revenues
C) actual operating income is less than the budgeted amount
D) budgeted contribution margin is more than the actual amount

6) What is the static-budget variance of revenues?
A) $18,000 favorable
B) $18,000 unfavorable
C) $6,000 favorable
D) $4,000 unfavorable

7) What is the static-budget variance of variable costs?
A) $2,000 favorable
B) $8,000 unfavorable
C) $4,000 favorable
D) $6,000 unfavorable

8) What is the static-budget variance of operating income?
A) $10,000 favorable
B) $10,000 unfavorable
C) $12,000 favorable
D) $12,000 unfavorable

9) What is the static-budget variance of revenues?
A) $105,000 favorable
B) $105,000 unfavorable
C) $8,000 favorable
D) $8,000 unfavorable

10) What is the static-budget variance of variable costs?
A) $25,000 favorable
B) $25,000 unfavorable
C) $215,000 favorable
D) $215,000 unfavorable

11) What is the static-budget variance of operating income?
A) $85,000 favorable
B) $90,000 unfavorable
C) $110,000 favorable
D) $105,000 unfavorable

12) What is the static-budget variance of revenues?
A) $55,000 favorable
B) $220,000 favorable
C) $220,000 unfavorable
D) $55,000 unfavorable

13) What is the static-budget variance of variable costs?
A) $12,000 favorable
B) $12,000 unfavorable
C) $15,000 favorable
D) $15,000 unfavorable

14) What is the static-budget variance of operating income?
A) $238,000 favorable
B) $238,000 unfavorable
C) $235,000 favorable
D) $235,000 unfavorable

15) Regier Company had planned for operating income of $10 million in the master budget but actually achieved operating income of only $7 million.
A) The static-budget variance for operating income is $3 million favorable.
B) The static-budget variance for operating income is $3 million unfavorable.
C) The flexible-budget variance for operating income is $3 million favorable.
D) The flexible-budget variance for operating income is $3 million unfavorable.

16) A master budget is called a static budget because it is developed around a single planned output level.
17) When considered in isolation, a favorable variance decreases operating income relative to the budgeted amount.
18) A variance is the difference between the actual cost for the current and expected (or budgeted) performance.
19) A favorable variance results when actual costs exceed budgeted costs.
20) Management by exception is the practice of concentrating on areas not operating as anticipated (such as a cost overrun) and placing less attention on areas operating as anticipated.
21) A favorable variance indicates that budgeted costs are less than actual costs.
22) A favorable variance should be ignored by management.
23) Variances are used for evaluating performance and for motivating managers.

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