Which of the following could not be the explanation for a FAVOURABLE labour efficiency variance in isolation?  A A higher grade of staff was used than originally planned B A new more efficient machine was purchased increasingly the hourly output of units C A decrease in the selling price led to an increase in demand for the product D A training course introduced a new more efficient process that staff could incorporate in production

Q: Which of the following is a limitation of the gross profit variance analysis? a. The level of…

A: Gross profit variance analysis refers to the analysis which dealt with how to analyse the profit…

Q: Click to watch the Tell Me More Learning Objective 2 video and then answer the questions below.

A:

Q: Which of the following statements is false? (You may select more than one answer.)a. Activity-based…

A:

Q: Our production department has been showing a high amount of raw material waste this last period. Our…

A: In accounting material yield variance refers to the difference between actual amount of material…

Q: 1. Which is not the factor causing unfavourable direct material usage? Select one: a. Change in rate…

A: Direct material usage (efficiency) variance: It is a measure that determines the variation in…

Q: How does persistent favorable variances in an employees cost performance create a management…

A: Favorable Variance: When the actual costs are lower than the standard, (or when the actual revenue…

Q: Which of the following may not be the reason for a change in gross profit to occur?     Increase in…

A: Gross Profit is the profit which is obtained by deducting the purchases and factory expenses from…

Q: Identify the correct statement from the following: Multiple Choice   Employees should always be…

A: Cost accounting is used by the management to assess the cost of production related to the firm…

Q: Which of the following types of companies would be most likely to benefit from activity-based…

A: activity-based costing -   generally, activity-based costing is used to allocate indirect costs or…

Q: nt(s) is/are true regarding standard costs and cost variances? i. they can be…

A: Standard costing and Cost variance are inter linked to each other as one helps in evaluation…

Q: Which of the following is NOT a problem associated with standard cost accounting? a. Standard…

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Q: Which of the following is NOT true?     Multiple Choice   An activity variances describes the…

A: Activity Variance The term which are used in the costing techniques which describes as difference…

Q: Which of the following decreases the non-value added time of producing a product and in turn…

A: Subassemblies service:It is a service offered by the manufacturer who do not have adequate time and…

Q: Which of the following cost categories tend to increase during the early years of TQM?  Which of…

A: TQM means total quality management tool which is a form of management approach so that organisation…

Q: Which of the following would explain an unfavorable variable overhead efficiency variance? (1)…

A: Unfavorable Variable overhead efficiency variance refers to a situation when Actual labor hour>…

Q: A manufacturing company has been working with one of its primary suppliers to improve the quality of…

A: Cost of Quality refers to costs incurred with respect to a product to assure its quality such as…

Q: Q.Explain in details with example:- Control and Cost Reduction are the two important factors by…

A: To earn a profit is the main goal of every business.

Q: he following sentences relate to achieving the financial goal of cost minimization. Which of the…

A: Cost minimization is a concept by which producers try to figure out how costs should be reduced.…

Q: Which of the following is not a characteristic of a lean accounting system? Multiple Cholce Costs in…

A: lean accounting is the collection of principal and the process that provides the numerical feedback…

Q: Do you agree with the following statements? Check only those with which you agree. Check All That…

A: Variable Costing refers to those costs which are directly related to the production and changes with…

Q: Which is not true in lean manufacturing? a) Process flexibility results in market responsiveness b)…

A: Lean manufacturing is a system that enhances customer value and always strives towards improvement…

Q: 1) Which of the following is a reason that has accelerated the demand for refinements to the costing…

A: Due to the Diversity of Products and completions are some of the factors for refinements to the…

Q: Question A7 Which of the following could not be the explanation for a FAVOURABLE labour efficiency…

A: Labour efficiency variance is the difference between actual costs and budgeted cost of labour due to…

Q: Which of the following statements is true with respect to the performance metrics useful for…

A: In production process, the ratio of direct labor should be more than the indirect labor. An ideal…

Q: which of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring…

A: The difference between the Standard labour Cost for actual hours worked and actual wages paid is…

Q: Why is the identification of favorable and unfavorable variances so important to a company? How can…

A: Introduction: Every business creates Standard Costs for a range of goods and services. It uses these…

Q: Which of the following statement(s) is/are true regarding standard costs and cost variances?

A: In standard costing, experts set standard for production, labor, overhead, sales and profit. Using…

Q: Which of the following statements is false? (You may select more than one answer.)a. In recent…

A: Manufacturing Overhead cost mean costs apart from direct costs i.e. those indirect costs which are…

Q: QUESTION 10 Which of the following would best explain a favourable materials price variance? O a. A…

A: Material price variance means difference in standard cost of materials and actual cost of materials…

Q: Which of the following can signal the need for a new product costing system? Select one: O a.…

A: Please find the answer to the above question below:

Q: Which of the following may not be the reason for a change in gross profit to occur? a. Increase of…

A: In the given case any changes made in the manufacturing process that is raw material,wages and…

Q: Question 3 An unfavorable efficiency variance for direct manufacturing labor might indicate that…

A: Variances are calculated in order to compare the budgeted performance with the actual results of the…

Q: Which of the following statements is false?   Cost allocations such as activity-based costing allow…

A: Activity-Based Costing: Activity-Based Costing method is generally used to allocate the overhead…

Q: Consider how Break-Even analysis would change (i.e. how is the breakeven point affected) in the…

A: The question is related to Breakeven Point. The Breakeven Point is that level of sales at which…

Q: A company product has used more material to produce than the standard amount but takes fewer labor…

A: The correct option with proper explanation are as follows

Q: Which of the following is the most probable reason a company would experience an unfavourable labour…

A: The given problem is taken from standard costing. In such type of costing we estimate a standard for…

Q: TRUE OR FALSE Companies that use just-in-time processing techniques will have significant…

A: A just-in-time inventory system is an inventory management system wherein the company makes the…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.