The materials quantity variance, in a standard cost system, is the:
a. Difference between the actual and standard quantities.
b. Difference between the actual and standard quantities multiplied by the actual unit price.
c. Difference between the actual quantity used and the actual quantity purchased multiplied by the standard unit price.
d. Difference between the actual and standard quantities multiplied by the standard unit price.
d
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For industrial purchases the purchasing cycle can last for several years
Indicate whether the statement is true or false
Which of the following is the role of an internal auditor in an organization?
a. to establish the controls for the organization b. to write the code of ethical business conduct for the organization c. to test the system of internal controls in order to attest that there are no material weaknesses d. to assist management with the evaluation of internal controls currently in place
Motivation refers to forces that
A. are basically involuntary. B. energize, direct, and sustain a person's efforts. C. promote groupthink. D. reduce group cohesiveness. E. are acquired through education.
Virginia Company, a merchandising firm, operated five sales offices last year at a total cost of $500,000, of which $70,000 represented fixed costs. Virginia has determined that total costs are significantly influenced by the number of sales offices operated. Last year's costs and number of sales offices can be used as the basis for predicting annual costs. What would be the budgeted cost for the coming year if Virginia were to operate seven sales offices? (CPA adapted)
A. $602,000. B. $672,000. C. $586,000. D. $700,000.