Which of the following control actions could be taken to help eliminate an adverse direct labour efficiency variance?
(i) Employ more highly skilled labour
(ii) Ensure stricter supervision of labour workers
(iii) Ask employees to work paid overtime
X department is a division of W Plc. X department usually has a quarterly wages cost of $4,500,000. Quarterly material costs are usually around $2,000,000. W Plc made a central decision to award all employees a wages increase of 2%.Which of the following variances for the latest quarter are worth investigating?(i) Direct material price variance $400 (A)(ii) Labour rate variance $90,000 (A)(iii) Sales volume variance $4,000,000 (F)
Which of the following BEST describes the purpose of a flexible budget?
The following statements relate to fixed budgets and flexible budgets.
(i) If production levels far exceed those anticipated, relying on a fixed budget is likely to result in massive variances
(ii) Flexible budgets assist management control by providing dynamic, comparable information
(iii) Flexible budgets are always superior to fixed budgets Which statements are true?
articiPpation by staff in the budgeting process is often seen as an aid to the creation of a realistic budget and to the motivation of staff. There are, however, limitations to the effectiveness of such participation. Which of the following illustrates one of these limitations?
Which of the following statements about budgeting and motivation are true?(i) A target is more motivating than no target at all(ii) The problem with a target is setting an appropriate degree of difficulty(iii) Employees who are challenged tend to withdraw their commitment
Which of the following best describes a top-down budget?
In which of the following situations would the use of imposed budgets NOT be appropriate?
In which of the following circumstances is the use of a participative budgeting process appropriate?(i) In decentralised organisations(ii) When acceptance of the budget as fair and equitable is essential(iii) When an organisation's different units act autonomously
Which of the following best describes a controllable cost?