Do other companies like BMW Group use manufacturing standards to guide performance at their plants? 1.Yes 2.No

Do you think there is a uniform set of manufacturing standards which companies in similar industries (i.e. automotive industry) use to guide their performance? 1.Yes 2.No

Do companies like BMW Group have software or computer programs to help set manufacturing standards for their companies? 1.Yes 2.No

Do you think that it is difficult for a company like BMW Group to create manufacturing standards for its plant? 1.Yes 2.No

Do companies like BMW Group change their manufacturing standards each year? 1.Yes 2.No

Only manufacturing businesses use standards to evaluate and control operations. 1.True 2.False

Standards should be revised when they differ from actual costs. 1.True 2.False

Standards can be used for direct materials, direct labor and factory overhead. 1.True 2.False

An unfavorable cost variance results when actual cost is greater than standard cost at actual volumes. 1.True 2.False

A flexible budget may be used to determine the impact of changing production on fixed and variable factory overhead costs. 1.True 2.False

A nonfinancial performance measure is a performance measure expressed in dollars. 1.True 2.False

The total factory overhead cost variance is the difference between the actual factory overhead and the total overhead applied to production. 1.True 2.False

Accounting systems that use standards for manufacturing costs are called 1.process cost systems 2.job order cost systems 3.budget cost systems 4.standard cost systems

The difference between a standard cost and an actual cost is called a 1.cost variance 2.cost inefficiency 3.control variable 4.marginal variance

Standards that can be achieved only under perfect operating conditions are called 1.normal standards 2.ideal standards 3.currently attainable standards 4.variable standards

Standards for direct materials, direct labor and factory overhead can be separated into which two components? 1.a price standard and a normal standard 2.a price standard and a variable standard 3.a price standard and a quantity standard 4.a normal standard and a quantity standard

A budget performance report will show 1.actual costs 2.standard amounts for the actual level of production achieved 3.the difference between actual costs and standard amounts 4.all of these choices

The total direct materials cost variance is equal to the 1.sum of the materials price variance and the materials quantity variance 2.difference between the materials price variance and the materials quantity variance 3.product of the materials price variance and the materials quantity variance 4.materials price variance

The total direct labor cost variance is equal to the 1.direct labor rate variance 2.sum of the direct labor rate variance and the direct labor time variance 3.difference between the direct labor rate variance and the direct labor time variance 4.product of the direct labor rate variance and the direct labor time variance

In computing factory overhead variances, the standard overhead rate is determined by 1.dividing the budgeted factory overhead costs by the standard amount of productive activity 2.dividing the budgeted factory overhead costs by the actual amount of productive activity 3.dividing the actual factory overhead costs by the standard amount of productive activity 4.dividing the actual factory overhead costs by the actual amount of productive activity

The variable factory overhead controllable variance is 1.the difference between the standard variable overhead incurred at actual production and the budgeted variable overhead for actual production 2.the sum of the actual variable overhead incurred and the budgeted variable overhead for actual production 3.the difference between the actual variable overhead incurred and the budgeted variable overhead for actual production 4.the difference between the actual variable overhead incurred and the standard variable overhead for actual production

If the standard fixed overhead exceeds the budgeted overhead at 100% of normal capacity, the variance is 1.not able to be determined 2.neither favorable nor unfavorable 3.unfavorable 4.favorable