MALİYET VE YÖNETİM MUHASEBESİ

The difference between the actual results and budgeted amounts is called “variance”.

There are several types of standards that can be classified from different perspectives, such as:
a. the level of difficulty,
b. updating frequency,
c. subject of standards, and
d. level of participation to the standard-setting process.

Ideal standards reflect the peak operating efficiency without any
production disruptions.

Kaizen standards are exactly the opposite of fixed standards because they require continuous updating by their nature. These standards are continuous-improvement standards that reflect planned improvements year-by-year.

Classification According to Subject of Standard divides standards into "quantity standard" and "price standard" According to the answer to the question “what should be the …. of inputs to use in producing one unit”, the name of the standard is determined. If the answer specifies the needed quantity of resource consumption the standard is “quantity standard”; however, if the answer gives the price information on inputs, it is “price standard” that the company sets.

If the standards are set solely or primarily by the management only, they are called the authoritative standards.

The accounting system, in which standard costs and associated variances are recorded in the
formal accounting records is called the “standard costing”.

Flexible budget is the budget that adjusts the revenues and expenses according to actual sales volume.

Sales-volume variance = (Actual sales volume - Budgeted sales volume) x Budgeted selling price

The correct answer is B. The management uses standards to prepare the budgets of the coming period; so that at the end of the period they can evaluate the performance of operations by comparing the actual results with the budgeted targets that are determined with the help of standards.

The correct answer is B. Managers use two methods for setting the cost standards: historical data analysis and task analysis. Task Analysis method, historical data has no use. Managers work together with the engineers to determine the standards. By analyzing the tasks during the production the standards.

The correct answer to question is option A. The features given in other options are those of fix standards.

The correct answer is D. Quantity standard is classification according to subject of standard. Classification According to Updating Frequency are fixed standards and kaizen standards.

The correct answer is D. The statements in the other embodiments refer directly to establishing the standard cost for direct labor.

The correct answer is C. A standard cost sheet is a record that specifies the details of standard costs (including both price and quantity) for all manufacturing factors needed for producing one unit.

The correct answer to question is option A. Managers consider these two variances for price and quantity (efficiency) to learn about efficiencies (inefficiencies) in purchasing or using the resources, and if necessary, take corrective actions.

The correct answer is D. Direct labor price variance arises when the wage rate that a company pays is different from the standard rates predetermined before the beginning of the period.

The correct answer is question E. Because this ratio is evaluated the necessity of material purchases.

Direct Price Variance = (45-42) x (30.000) =90.000 is the total variance on purchases.

In a budgetary control system, the standards are set, at first. These standards represent what it should cost the company to produce one unit of finished goods. Then, the standards are multiplied with the production volume to determine the total budgeted production cost for the upcoming period. When the period ends, the actual production cost is measured and deviations from the budgeted costs are determined. Standard cost is the cost determined by careful analyses that states how much something cost to the company under normal conditions.