Which of the following may not be the reason for a change in gross profit to occur? a. Increase of spoilage in materials in the production b. Changes in wage rates of employees in the factory c. Increase in salary of clerks in the administrative office of the company customers d. Change of product mixed from budgeted as compared to actual

Which of the following may not be the reason for a change in gross profit to occur? a. Increase of spoilage in materials in the production b. Changes in wage rates of employees in the factory c. Increase in salary of clerks in the administrative office of the company customers d. Change of product mixed from budgeted as compared to actual

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 23MC: Which of the following is a possible cause of an unfavorable material quantity variance? A....

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Similar questions

Why does a company use a standard costing system? A. to identify variances from actual cost that assist them in maintaining profits B. to identify nonperformers in the workplace C. to identify what vendors are unreliable D. to identify defective materials
What are some possible reasons for a labor rate variance? A. hiring of less qualified workers B. an excess of material usage C. material price increase D. utilities usage change
Which of the following would be expected to result in a reduction in actual net profit compared to budgeted net profit in an accounting period? Please select all that apply. A decrease in the actual selling price of products compared to the budgeted selling price of products without a corresponding decrease in the actual costs of producing those goods. An increase in actual expenditure on non-current assets compared to budgeted expenditure on non-current assets. A more productive workforce than budgeted. An increase in the actual cost of raw materials compared to the budgeted cost of raw materials without a corresponding increase in the actual selling price of goods produced.
Which of the following may not be the reason for a change in gross profit to occur? Increase in salary of clerks in the administrative office of the company customers Increase of spoilage in materials in the production Change of product mixed from budgeted as compared to actual Changes in wage rates of employees in the factory
Which of the following would reduce net profit margin but have no effect on gross profit margin?a) Reducing the commission rate paid to salesmen.b) Negotiating a lower purchase price for raw materials.c) An increase in IT support costs for the accounting package used.d) Increasing the expected economic lives of machinery used in the production function.
Which of the following is a limitation of the gross profit variance analysis? a. The level of efficiency of asset management department can be computed and shown b. It includes the amount invested in working capital c. Measurement of the impact on gross profit due changes in sales volume cannot be determined d. The gross profit variance analysis is limited only on the product attributable cost
Gross profit variance analysis can be used to study the effect of: a. Changes in cost of goods sold on a company's profitability. b. Changes in selling prices on a company's profitability. c. Changes in volume of goods sold on a company's profitability. d. All of the choices. Changes in product sales mix on a company's profitability.
An unfavorable factory overhead controllable variance may be due to which of the following factors? a. unexpected increases in the cost of utilities b. failure to maintain an even flow of work c. machine breakdowns d. failure to obtain enough sales orders
Assume that a company has decided not to allocate any support department costs to producing departments. Describe the likely behavior of the managers of the producing departments. Would this be good or bad? Explain why allocation would correct this type of behavior.
The cost of inventories does not include Salaries of factory staff. Irrecoverable purchase taxes. Abnormal amounts of wasted materials and  distribution costs. Storage costs necessary in the production process  before a further production stage.
Which of the following would most likely decrease the product cost per unit under variable costing? adecrease in raw material cost per unit an increase in the number of units sold a decrease in the commission paid to salesmen for each unit sold a decrease in the remaining useful life of a factory equipment depreciated on the straigth-line method
Which of the following would not be considered a cost ofquality?a. Lost sales due to bad publicity generated by productfailures.b. The cost of repairing merchandise that was dropped bya forklift in the factory.c. The amount of a bonus paid to the work team producingthe fewest defective units.d. The cost of the external audit.