Question 1) Management accountants generally plan for the small positive cash balance in their cash budgets for all of the given reasons except:
a) It gives for unexpected emergencies.
b) Keeping balance as small as possible is the significant method to efficiently manage cash.
c) It gives a safety buffer for variations from plan.
d) It gives funds in case of major capital expenditures
Question 2) Labor effectiveness has sometimes been incorrectly referred to in class as:
a) labor quantity variance.
b) materials quantity variance.
c) total labor variance.
d) labor rate variance.
e) (standard material, plus standard labor, plus standard overhead) times the controllable scrap rate.
Question 3) Standard price and standard quantity of direct materials are separated for the reason that:
a) generally direct materials prices are controlled by purchasing department, and quantity of direct materials used is controlled by production department.
b) GAAP reporting needs this separation.
c) standard quantities are more complicated to calculate than standard prices.
d) standard prices alter more frequently than standard quantities.
e) it is needed by the matching principle.