51.A company must choose either a standard system or nonfinancial performance measures to evaluate theperformance of a company.
a.True
b.False
52.Nonfinancial performance output measures are used to improve the input measures.
a.True
b.False
53.An example of a nonfinancial measure is the number of customer complaints.
a.True
b.False
54.A company should only use nonfinancial performance measures when financial measures cannot be calculated.
a.True
b.False
55.Which of the following conditions normally would
notindicate that standard costs should be revised?
a.The engineering department has revised product specifications in responding to customer suggestions.
b.The company has signed a new union contract that increases the factory wages on average by $3.50 anhour.
c.Actual costs differed from standard costs for the preceding week.
d.The average price of raw materials increased from $4.68 per pound to $4.82 per pound.
56.Standards that represent levels of operation that can be attained with reasonable effort are called
a.theoretical standards
b.ideal standards
c.variable standards
d.normal standards
57.Standard costs are used in companies for a variety of reasons. Which of the following is
notone of the benefits forusing standard costs?
a.used to indicate where changes in technology and machinery need to be made
b.used to estimate cost of inventory
c.used to plan direct materials, direct labor, and variable factory overhead
d.used to control costs
58.The principle of exceptions allows managers to focus on correcting variances between
a.standard costs and actual costs
b.variable costs and actual costs
c.competitor’s costs and actual costs
d.competitor’s costs and standard costs
59.Periodic comparisons between planned objectives and actual performance are reported in:
a.zero-base reports
b.budget performance reports
c.master budgets
d.budgets
60.The standard price and quantity of direct materials are separated because
a.GAAP and IFRS reporting requires separation
b.direct materials prices are controlled by the purchasing department and quantity used is controlled by theproduction department
c.standard prices are more difficult to estimate than standard quantities
d.standard quantities change more frequently than standard prices