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Business Accounts Exam Questions with Correct Answers
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Business Accounts Exam Questions with Correct Answers
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Business Accounts Exam Questions with Correct Answers1. 6) occur(s) when managers ask subordinates to discuss their ideas about the
budget, but no joint decision-making occurs.
A) Traditional budgeting
B) Stretch targets
C) The beyond budgeting approach
D) Budget slack: C
2. 5) mean(s) that the organization will attempt to reach much higher goals with
the current budget.
A) Traditional budgeting
B) Stretch goals
C) The beyond budgeting approach
D) Budget slack: B
3. 2) occur(s) when a superior simply tells subordinates what their budget will be.
A) Traditional budgeting
B) Stretch goals
C) Beyond budgeting approach
D) Budget slack: A
4. 1) In the service sector, rather than machines usually represent(s) the capacity
,constraint, which underscores the importance of budgeting even in nonmanufacturing organizations.
A) people
B) knowledge
C) familiarity with processes
D) potential for sales: A
5. 27) The best label for the formula [(AP) × (AQ) - (SP) × (SQ)] is the:
A) materials quantity variance.
B) materials price variance.
C) total cost variance for materials.
D) labor efficiency variance.: C
6. 26) The best label for the formula [(AP) × (AQ) - (SP) × (AQ)] is the:
A) materials quantity variance.
B) materials price variance.
C) total cost variance for materials.
D) labor efficiency variance.: B
7. 25) The best label for the formula (AP - SP) × AQ is the:
A) materials quantity variance.
B) materials price variance.
C) total cost variance for materials.
,D) labor efficiency variance.: B
8. 24) The best label for the formula (AQ - SQ) × SP is the:
A) materials quantity variance.
B) materials price variance.
C) total cost variance for materials.
D) labor wage rate variance.: A
9. 23) An organization planned to use $44 of material per unit of activity but it actually used $42 of
material per unit of activity, and it planned to make 1,200 units but it actually made 1,000 units. The
planning variance is:
A) $2,000.
B) $8,800.
C) $16,400.
D) $2,400: B
10.22) An organization planned to use $44 of material per unit of activity but it actually used $42 of
material per unit of activity, and it planned to make 1,200 units but it actually made 1,000 units. The
flexible budget variance for materials is:
A) $2,000 favorable.
B) $14,000 unfavorable.
C) $16,400 unfavorable.
D) $2,400 favorable.: A
, 11.21) An organization planned to use $44 of material per unit of activity but it actually used $42 of
material per unit of activity, and it planned to make 1,200 units but it actually made 1,000 units. The
flexible budget amount for materials is:
A) $42,000.
B) $44,000.
C) $48,000.
D) $49,400.: B
12.20) A favorable wage rate variance for direct labor might indicate that:
A) employees were paid less than planned.
B) fewer skilled employees are available in the market.
C) less skilled and qualified employees are being hired.
D) an efficient labor force.: A
13.19) A favorable efficiency variance for direct labor indicates that:
A) a lower wage rate than expected was paid for direct labor.
B) a higher wage rate than expected was paid for direct labor.
C) less direct labor hours were used during production than expected for
actual output.
D) more direct labor hours were used during production than expected for actual output.: C
14.18) A favorable price variance for direct materials indicates that:
A) a lower price than expected was paid for materials.
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