Standard Costs in Accounting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. John has requested a standard cost income statement from the accounting department. Which choice IS most closely related to this statement?

Question 2 2. Where can one find net profit on a standard cost income statement?

Question 3 3. The variance calculated for a product describes the difference between a _____ amount and the _____ amount.

Question 4 4. Key Performance Indicators are MOST closely associated with _____.

Question 5 5. Which of the following would NOT be considered when evaluating the customer perspective using a balanced scorecard approach?

Page 2

Question 6 6. Learning and growth is a perspective considered in a _____ approach to measuring progress.

Question 7 7. _____ are the estimated or expected value of the resources consumed in the production of an item.

Question 8 8. John has data for a product's standard material cost, standard labor cost, and standard overhead cost. What is he MOST likely calculating?

Question 9 9. John has calculated a(n) _____ standard cost variance for a product that suggests costs are lower than the standard cost.

Question 10 10. What is the perspective of a balanced scorecard that centers around repeat customers and their satisfaction?

Page 3

Question 11 11. Which perspective focuses on training employees?

Question 12 12. Key performance indicators are used for what?

Question 13 13. What is a variance in accounting?

Question 14 14. What is an unfavorable variance in accounting?

Question 15 15. What is a standard cost in accounting?

Page 4

Question 16 16. What is a variance percentage in accounting?

Question 17 17. What is a benefit for companies that keep good track of variance expenses?

Question 18 18. What is a standard cost in accounting?

Question 19 19. Calculate the materials price variance given the following information: actual quantity = 200; actual cost per input = $2; standard cost per input = $2.50.

Question 20 20. Which of the following is NOT an example of a volume variance?

Page 5

Question 21 21. What type of variance describes differences either in the price paid for raw materials, or in the cost of labor used in the manufacturing process?

Question 22 22. Which of the following is a standard cost?

Question 23 23. Bob is creating a budget based on standard costs. Which of the following costs may create the greatest variance from the budget?

Question 24 24. When is a variance in standard costs favorable?

Question 25 25. Which of the following situations would produce a standard cost variance?

Page 6

Question 26 26. Kelly started a business selling birdhouses. They cost her $15 to make, and she sells them for $75 each. What is the gross profit for this item?

Question 27 27. Which of the following is NOT an advantage to using a standard cost method?

Question 28 28. Which of these is always subtracted from the sales total?

Question 29 29. What kind of accounting practice must use a standard cost income statement?

Question 30 30. In what situation would sales variances occupy more than a single line item on an income statement?

Standard Costs in Accounting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Accounting 303: Cost Accounting  /  Business Courses
Support