41.The concept of a standard used for planning and control purposes is most like a:
A. measure of ideal performance.
B. unit budget.
C. measure of maximum efficiency.
D. measure of historical performance.
42.Standards are most appropriately used to:
A. reward workers and managers who meet them.
B. penalize workers and managers who do not meet them.
C. calculate the unit cost of a product or service.
D. support the planning and control processes of the firm.
43.Standards are likely to be most useful when expressed in:
A. dollars per unit of input to the manufacturing process.
B. quantities per unit of output from the process being evaluated.
C. total costs for the accounting period for the department being evaluated.
D. terms easily related to by the individual whose performance is being evaluated.
44.Developing a standard cost for a product or service will usually involve:
A. efforts of cost accounting personnel only.
B. focusing only on variable costs.
C. the same kind of communication involved in the overall budgeting process.
D. concentrating on historical costs and performance levels.
45.Once standard costs for products or services have been developed:
A. they must be updated monthly to be useful.
B. they can be used for more than planning and control purposes.
C. they need not be revised unless the product or service is modified.
D. performance reports must be issued if the standards are to be useful.
46.The kind of standard that is most useful for planning and control is:
A. an attainable standard.
B. an ideal, or engineered, standard.
C. a negotiated standard.
D. a past experience standard.
47.Standard costing is developed and used for:
A. planning purposes.
B. control purposes.
C. product costing purposes.
D. all of these.
48.Breaded Oak, Inc. has a policy that requires 20 percent of the expected sales of its product to be on hand at the end of the prior month. Forecasted sales, in units, for the months of January through April are as follows:
(a.) Calculate the number of units planned for ending inventory for January, February, and March.
(b.) Calculate the number of units budgeted to be produced in January, February, and March.
49.Brenda, Inc. makes wooden tables. Each table requires 28 pounds of lumber to produce. The sales forecast for March is 1,600 tables. Estimated beginning and desired ending inventories for March are the following:
(a.) Calculate the number of tables to be produced in March.
(b.) Calculate the number of pounds of lumber to be purchased in March.
50.Aborkian Co. is forecasting sales of 75,000 units of product for November. To make one unit of finished product, seven pounds of raw materials are required. Actual beginning and desired ending inventories of raw materials and finished goods are:
(a.) Calculate the number of units of product to be produced during November.
(b.) Calculate the number of pounds of raw materials to be purchased during November.