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Which of the following standards are based on the amount of input that should be used per unit of output

Which of the following standards are based on the amount of input that should be used per unit of output?

a.quantity standards

b.price standards

c.ideal standards

d.kaizen standards

 

 

 

2.What are price standards based on?

a.the amount that should be used per unit of output

b.the amount that should be paid for the total quantity of input to be used

c.the amount that should be paid per unit of output

d.the amount that should be paid per unit of input purchased

 

 

 

3.Which of the following are sources of quantitative standards?

a.historical experience

b.budget studies

c.input from interested personnel

d.benchmarks

 

 

 

4.Why should historical experience be used with caution in a standard setting?

a.It provides very rigorous guidelines.

b.Operating personnel may not be able to achieve operating standards based on historical experience.

c.It should be used with caution because it can perpetuate inefficiencies.

d.Standards based on historical experience are better than standards based on engineering studies.

 

 

 

5.Which of the following is NOT characteristic of engineering studies?

a.They can determine the most efficient way to operate.

b.They are often achievable by operating personnel.

c.They provide very rigorous guidelines.

d.They are ideal standards.

 

 

 

6.Who is responsible for setting price standards for materials and labour?

a.Personnel must consider discounts, freight, and quality.

b.Purchasing must consider payroll taxes, fringe benefits, and qualifications.

c.It is the joint responsibility of operations, purchasing, personnel, and accounting.

d.Purchasing must consider the quantity of materials.

 

 

 

7.Which statement about ideal standards is correct?

a.Allow for machine breakdowns, slack, or lack of momentary skill.

b.Demand minimum efficiency.

c.Can be achieved only if everything operates perfectly.

d.Can be achieved under efficient operations.

 

 

 

8.Which statement about currently attainable standards is correct?

a.They can be achieved under efficient operating conditions.

b.No allowance is made for normal breakdowns, interruptions, etc.

c.They are challenging and not achievable.

d.They tend to achieve lower performance levels from personnel.

 

 

 

9.Why are standard cost systems adopted?

a.to collect additional information

b.to increase efficiency in a just-in-time environment

c.to improve planning and control, and to facilitate product costing

d.to enhance the operational control of firms that emphasize continuous improvement

 

 

 

10.How do standard cost systems enhance operational control?

a.through efficiency variances, which indicate the need for corrective action

b.through price variances, which indicate the need for better spending control

c.through standard costs, which indicate the desired cost of a unit of input

d.through actual costs, which indicate the price received for units sold

Mar 13 2020 View more View Less

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