Standard costs serve as a device for measuring efficiency.

Indicate whether the sentence or statement is true or false. I. Standard costs serve as a device for measuring efficiency. 2. Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they can be incorporated in the accounts. 3. Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed direct expenses. 4. If income from operations for a division is $6,000, invested assets are $25,000, and sales are $30,000, the profit margin is 24%. 5. Hill Co. can further process Product 0 to produce Product P. Product 0 is currently selling for $60 per pound and costs $42 per pound to produce. Product P would sell for $82 per pound and would require an additional cost of $13 per pound to produce. The differential cost of producing Product P is $13 per pound. 6. A cost that will not be affected by later decisions is termed an opportunity cost. 7. Methods that ignore present value in capital investment analysis include the cash payback method. 8. If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inflows over the amount to be invested, the proposal should be rejected. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 9. Periodic comparisons between planned objectives and actual performance are reported in: a. zero-base reports b. budget performance reports c. master budgets d. budgets

Indicate whether the sentence or statement is true or false. I. Standard costs serve as a device for measuring efficiency. 2. Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they can be incorporated in the accounts. 3. Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed direct expenses. 4. If income from operations for a division is $6,000, invested assets are $25,000, and sales are $30,000, the profit margin is 24%. 5. Hill Co. can further process Product 0 to produce Product P. Product 0 is currently selling for $60 per pound and costs $42 per pound to produce. Product P would sell for $82 per pound and would require an additional cost of $13 per pound to produce. The differential cost of producing Product P is $13 per pound. 6. A cost that will not be affected by later decisions is termed an opportunity cost. 7. Methods that ignore present value in capital investment analysis include the cash payback method. 8. If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inflows over the amount to be invested, the proposal should be rejected. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 9. Periodic comparisons between planned objectives and actual performance are reported in: a. zero-base reports b. budget performance reports c. master budgets d. budgets

Answer

Answer:

1. true

2. False

3. True

4. False

5. True

6. False

7. True

8. True

9. b. Budgeted performance reports