Exam 5

Question 1

DM Price Var

Answer 1

(actual price- Std Price)* Actual Quantity

Question 2

DL Rate Var

Answer 2

(Actual Rate-Std Rate) x Actual DL Hours

Question 3

Var MOH Rate Var

Answer 3

(actual Rate- Std Rate) x Actual Hr

Question 4

DM Quantity Var

Answer 4

(Actual Q- Std Q) x Std price

Question 5

DL Eff Var

Answer 5

( Actual DLH- Std DLH) xStd DL rate

Question 6

Var MOH Eff

Answer 6

(Actual HR- Std HR) x Std Rate

Question 7

Advantages to STD

Answer 7

Cost Benchmark, Usefulness Budgeting, Motivation, Standard Costing systerm

Question 8

Disadvantages to STD

Answer 8

Outdated standards, lack of timeliness, focus on operational, lean thinking, increase automation, unintended behavior

Question 9

Steps

Answer 9

Identify, analyze, engage, perform

Question 10

Payback period

Answer 10

initial investment/ annual net cash inflow

Question 11

ARR

Answer 11

Avg annual Op Inc/ Initial investment

Question 12

NPV

Answer 12

PV of future net cash inflows- initial investment

Question 13

Profitability Index

Answer 13

Present Value of future net cash inflows/ initial investment

Question 14

IRR (only formula given but not IRR)

Answer 14

Initial investment/ principle= Factor (n,i)