WHICH OF THE FOLLOWING IS NOT AN ADVANTAGE OF USING STANDARD COSTS AND VARIANCES? A. USE AS A PERFORMANCE BENCHMARK FOR EVALUATION OF ACTUAL COSTS. B. USE AS A BASIS FOR COMPONENTS OF THE MASTER BUDGET. C. SIMPLIFICATION OF BOOKKEEPING. D. CHANGE IN BEHAVIOR OF MANAGERS TO OBTAIN DESIRED VARIANCES.

Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing performance evaluations D. preventing net operating losses

During the control function, the measurements taken of the performance must be accurate enough to see _______________________________. only positive results deviations and variances the primary focus only the negative results

When might an unfavorable variance be a good outcome?

When would a static budget be effective in evaluating a managers performance?

Variance analysis would be appropriate to measure performance ina. profit centers.b. investment centers.c. cost centers.d. all of the above.

Which of the following statements is false?   Standard costs (e.g., how much should be paid for each unit of input) are benchmarks for measuring performance.   Managers should investigate only unfavorable variances.   Variance analysis enhances responsibility accounting.   A variance is the difference between the budgeted amount and actual amount.

Explain what is meant by the term management by exception. What is the relationship between the process of standard cost variance analysis and management by exception? Give some examples, positive and negative of management by exception.

What does the concept of ‘management by exception’ mean and what factors are considered when assessing the significance of a variance?

When management uses variance reports to evaluate cost control, they look into which of the following? O both variable and unfavorable variances that exceed a predetermined quantitative measure such as a percentage or dollar amount. no variances O unfavorable variances only O favorable variances only