Management Accounting 2

An advantage of standard costs is that standard costs facilitate management planning by establishing expected future costs.

Ideal standards represent an efficient level of performance that is attainable under expected operating conditions.

The direct labor price standard generally includes employer payroll taxed and fringe benefits, such as paid holidays and vactions. 

(Actual Quantitiy * Standard price) - (Standard Quantity * actual price) = Materials Price Variance

(Actual hours * actual rate) - (actual hours * standard rate) = Labor Price Variance

Standard hours allowed are the hours that should have been worked for the units produced

Variance reports facilitate the principle of "management by exception"

In income statements prepared under a standard cost accounting system, cost of goods sold is stated at standard cost. 

The overhead controllable variance is the difference between the actual overhead costs incurred and the overhead applied

Which of the following is an advantage of standard costs?

if the predetermined overhead rate per hour is $6 for variable and $2 for fixed overhead, standard direct labor hours per unit is 2 hours and actual direct labor hours per unit was 1,5 hours, then the overhead standard cost per units is

the formula for the labor quantity (or efficiency) variance is

If actual overhead is 70', overhead applied is 67' and overhead budgeted for the standard hours allowed is 78' then the overhead controllable variance is 

in standard cost accounting system, a company purchased raw materials on account for 46'500 when the standard cost was 44'. The journal entry would NOT include a

Management accounting focuses on production costs and unit costs, Coporate Planning & Control is a typical Financial Accounting issue. 

Controlling is a decision-making power

Strategic Management is a level of managerial activity below setting goals and above tactics, providing overall directions to an enterprise. 

The Objectives determined in Strategic Planning answer the question what the business wants to achieve.

What costs are involved in making a product or providing a service? Cost concepts will give us the right answers. 

Decision-making concepts answer among other things the question: if we decrease the production volume, will costs decrease too?

the value chain refers to all business processes associated with providing shareholder value

Just-in-time inventory methods lead to an inventory system in which goods are manufactured or purchased just in time for sale

total Quality Management (TQM) is a system that distingushes defective finished products form those with zero defects...

Managerial Accounting software is usually included in ERP

Which of the following are according to the course material defined as Cost Concepts

Controlling tasks are

strategic controlling includes

The theory of constraints postulates the following assumptions

Check what applies for Activity-based Costing (ABC)

The balanced scorecard is a concept to manage and measure the implementation of strategies.

the strategy gives answers to the following question: What do we want to achieve?

The contribution margin is most likely associated with the internal process perspective

the objectives determined in Strategic Planning answer the question what the business wants to achieve

Budgeting and Management planning are typical operative tasks

The cause- and effect linkage of the balanced scorecard are more hypotheses than precise assumption?

The Balanced Scorecard is usually included in ERP applications

BSC ties directly to the number one issue of executives today: strategy execution

The balanced scorecard is for internal use only. none of it should, therefore, be communicated to employees and other stakeholders. 

BSC links projects to measures, and measures to strategy. 

Which of the following would NOT be an objective used in the customer perspective of the balanced scorecard approach?