2.          “Machine breakdown” always make a favorable labor variance?

3.          “Operational variances” have been caused by adverse or favorable operational performance?

4.          “Theft” is one of the reasons for an adverse material variance?

5.          “Unforeseen discounts received” is one of the reasons for a favorable material variance?

6.          A budget is a quantified plan of action for a forthcoming accounting period?

7.          A budget is a yardstick against which actual performance is measured and assessed?

8.          A budgetary control and variance reporting system can only motivate managers and employees to improve performance and it can’t produce undesirable negative reactions.

9.          A manager of a revenue center is never responsible for the cost incurred in this center

10.      A profit center often includes cost center and revenue center

11.      A standard cost is an estimated unit cost built up of standards for each cost element (standard resource price and standard resource usage)?

12.      A standard cost is based on an assumption of a desirable steady state: this view is inconsistent with the principle of continuous improvement in TQM.

1.          A variance is the difference between an actual result and an expected result?

2.          Activity based budgeting differs from traditional (absorption) budgeting in the way that budgets are prepared for overhead costs. Overhead costs are budgeted on the basis of activities, rather than on a departmental basis?

3.          Activity based budgeting is similar to traditional budgeting in the way that budgets are prepared for overhead costs?

4.          Actual performance is a yardstick in which a budget is measured and assessed?

5.          Better quality of equipment or materials' may be a reason for a favorable labor efficiency variance?

6.          Budgetary planning and control systems require that managers of budget centers are made responsible for the achievement of budget targets for the operations under their personal control.

7.          Calculating a mix and yield variance is only meaningful for control purposes when management is in a position to control the mix of materials used in production?

8.          Each divisional manager is responsible for the performance of the division

9.          Financial measures are typically measures relating to revenues, cost, return on capital, asset values or cash flows and service quality?

10.      Idle time variance should be reported in ‘Just in time’ manufacturing?

11.      If a company sells only one product, it is possible to analyze the overall sales volume variance into a sales mix variance and a sale quantity variance?

12.      If actual results are worse than expected results, do we have a favorable variance (F)?

13.      In a system of standard costing, idle time is an adverse labor efficiency variance, and is undesirable. But in JIT manufacturing, idle time variance should therefore be expected?

14.      In the “Learning curve theory”, the more units that a worker makes, the longer time spent for producing a unit?

1.          Incremental budgeting is a method of budgeting in which next year's budget is prepared by using the current year's actual results as a starting point, and making adjustments for expected inflation, sales growth or decline and other known changes?

2.          Incremental budgeting is a method of budgeting in which next year's budget is prepared by using the current year's budgets as a starting point, and making adjustments for expected station, sales growth or decline and other known changes?

1.          Is the following formula to calculate breakeven point TRUE or FALSE “The breakeven point is at the intersection of the sales line and the total costs line”

30. Is the following statement about cost plus pricing TRUE or FALSE “Cost-plus pricing methods take the approach of adding a specified of MARGIN to the cost of a product”

1.          Is the following statement about decision rule for make or buy decisions TRUE or FALSE “When there are no limiting factors restricting the in-house production capacity, the relevant costs are the differential costs between the two options”

1.          Is the following statement about depreciation TRUE or FALSE “Depreciation is not a relevant cost because it is not a cash flow”

1.          Is the following statement about full cost-plus pricing T or F “Full cost-plus is a method of deciding the sales price by adding a percentage mark-up for profit to the marginal cost of the product”

1.          Is the following statement about joint costs in further processing decision T or F “In a decision about whether or not to sell a joint product at the split-off point or after further processing, joint costs are irrelevant”

1.          Is the following statement about limiting factor analysis T or F “If there is one limiting factor, the best contribution would be earned by maximizing the contribution per unit of that limiting factor”

1.          Is the following statement about material flow cost accounting (MFCA) T or F ? “In MFCA, output costs are allocated between positive and negative product costs”

1.          Is the following statement about multiple limiting factors analysis T/. “Surplus occurs when maximum availability of a other constraining factor is not used”

2.          Is the following statement about outsourcing true or false? "The outsourcing option is likely to give management more direct control over the work of products or services from external suppliers”

3.          Is the following statement about price elasticity of demand (P.E.D) T or F “The price elasticity of demand (PED) is a measure of the extent of change in demand for a good in response to a change in its price”

4.          Is the following statement about sunk costs TRUE or FALSE “Sunk costs are costs that have already been incurred. Sunk costs can be relevant costs”

5.          Is the following statement about target costing TRUE or FALSE? “Products should be discontinued if there is a target cost gap”

6.          Is the following statement about target costing TRUE or FALSE? “A target cost gap is the difference between the target cost for a product and its projected cost”

7.          Is the following statement about target costing TRUE or FALSE? “A risk with target costing is that cost reductions may affect the perceived value of the product”

8.          Is the following statement about target costing TRUE or FALSE? “Cost may be reduced in target costing by removing product features that do not add value”

9.          Is the following statement about target costing TRUE or FALSE? “The high cost of (for ex) research, design and marketing in the early stages in a product’s life-cycle necessitate a high initial selling price”

10.      Is the following statement TRUE or FALSE regarding activity-based costing? “A cost pool is an activity which consumes resources and for which overhead costs are identified and allocated”

11.      Is the following statement TRUE or FALSE regarding activity-based costing (ABC) and cost drivers? “A cost driver is any factor that cause a change in the cost of an activity”

12.      Is the following statement TRUE or FALSE regarding activity-based costing? “Life-cycle costing takes into account all costs incurred in a product like life-cycle with exception of sunk costs incurred on research and development”

13.      Is the following statement TRUE or FALSE regarding activity-based costing? “Life-cycle costing ensures a profit is generated over the life of the product”

14.      Is this TRUE or FALSE if material is identified as limiting factor in the case as follows “It needs 3 kg of material X and 2 machine hours to produce one unit of product A and those of 2 kg and 1.5 hours for product B. It was expected that 6,000 machine hours and 10,000 kg of X being available for production. Sales demand was 2,000 units for each product”

15.      Material price increase' is one of the reasons for a favorable material variance?

16.      More effective use made of material' one of the reasons for an adverse material variance?

17.      Performance measures may be divided into 2 types: Financial and Non-financial performance indicators?

18.      Performance measures should only include factors which managers can control by their decisions, and for which they can be held responsible

19.      Planning forces management to look ahead, to set out detailed plans for achieving the targets for each department, operation and each manager?

20.      Planning variances’ have arisen because of inaccurate planning or faulty standards?

21.      Rolling budgets are budgets which are continuously updated throughout a financial year, by reviewing the current period (say a month or a quarter) and removing when it has just ended?

22.      Standard costing is used to value inventories, prepare cost budgets for production and provide control information (variances).

23.      The activities of different departments or subunits of the organization do not need to be co-ordinated to ensure maximum integration of effort towards common goal?

24.      The balanced scorecard focuses on 4 different perspectives as follows: Financial, Customer, Internal and Innovation and Learning?

25.      The balanced scorecard focuses on 4 different perspectives as follow: Financial, Customer, Internal and Internal and Competitor

26.      The essence of control is 'measurement of results' and 'comparing' them 'with the original plan'. Any 'deviation from the plan' indicates that 'control actions are required' to make the 'results more closely with the plan'.

27.      The essence of control is 'measurement of results' and 'comparing' them “with the original plan”. Any 'deviation from the plan' always indicates that “there is some problems with the actual performance”?

28.     The essence of control is 'measurement of results' and 'comparing' them 'with the original plan". Any 'deviation from the plan’ always indicates that ‘there is some problems with the original plan’?

29.      The materials usage variance can be subdivided into a sales mix variance and a materials yield variance when more than one material is used in the product?

30.      The philosophy in TQM of ‘right first time’ may be inconsistent with a standard cost that includes an allowance for wastage

31.      The principle behind zero based budgeting (ZBB) is that the budget for each cost center should be made from the previous year's actual performance ?

32.      The principle behind zero based budgeting (ZBB) is that the budget for each cost center should be made from ‘scratch’ or zero. Every item of expenditure must be justified in its entirety in order to be included in the next year's budget?

33.      The sales volume variance can be analyzed further into a sales mix variance and a sales quantity variance?

34.      The selling price variance measures the effect on expected profit of a selling price different to the standard selling price?

35.      The selling price variance measures the effect on expected profit of a sales volume different to the expected sales volume?

36.      Use of workers at a lower rate of pay than standard' is a reason of a favorable labor variance?

37.      Use of workers at a lower rate of pay than Standard' is a reason of an adverse labor variance?

38.      Variance analysis is the process by which the total difference between standard and actual results is analyzed?

39.      We should use only one performance measure for one manager

40.      When actual results are better than expected results, do we have an adverse variance (A)?

41.      When circumstances may occur that make the original budget or standard cost invalid or inappropriate, it may be appropriate to revise a budget or standard cost?

42.      With bottom-up budgeting, the budgeting process starts at senior management level?

43.      With top-down budgeting, budget targets are set at senior management level for the organization as a whole and for each major department or activity within the organization?