Question

8. The Smart CPA firm held an End of Tax Season party. The company expected attendance of 75 people and prepared the following budget:

Hotel room rental $600
Food 1,000
Entertainment 750
Decorations 250
Total Costs $2,600

Seventy five people attended the party. The following costs were incurred:

Hotel room rental $600
Food 1,150
Entertainment 750
Decorations 350
Total Costs $2,850

What is the variance for total costs?
A) $300 Unfavorable
B) $300 Favorable
C) $250 Favorable
D) $250 Unfavorable

9. The various stages through which a product passes are called the ________.
A) product life cycle
B) value chain
C) performance plan
D) product performance plan

10. Research and development is the function of a value chain that involves ________.
A) the detailed design and engineering of products, services or processes
B) the generation of ideas related to new products only
C) the generation of ideas related to new products, services or processes
D) the detailed design and engineering of new processes

11. Which of the following is a major factor causing changes in management accounting today?
A) additional value chain functions
B) small advances in technology
C) increased global competition
D) shift to manufacturing-based economy

Answer 1

8) Variance for Total Cost    = Actual Total Cost   - Budgeted Total Cost

                                                  = 2850 -2600

                                                   = 250 (UF)

Answer D) $250 Unfavorable

9. The various stages through which a product passes are called the

Answer A) product life cycle

10. Research and development is the function of a value chain that involves

Answer A) the detailed design and engineering of products, services or processes

11. Which of the following is a major factor causing changes in management accounting today?

Answer C) increased global competition