In Command Ltd Completed Operations for the Week and the Accountant

question 120

Multiple Choice

In Command Ltd completed operations for the week and the accountant was preparing to make journal entries necessary to prepare a set of interim financial statements. Unfortunately, he discovered some of the data concerning direct materials had been lost. He was able to find the following: $$\begin{array} { l l } \text { Efficiency variance } & \$ 9,000 \text { Unfavourable } \\\text { Stardard price } & \$ 10 \text { per urit } \\\text { Actual units purchased } & 18,000 \\\text { Inventory decrease } & 1,000 \text { units } \\\text { Budget variance } & \$ 1,800 \text { Favourable }\end{array}$$ The standard cost of the direct materials used was:

• A) $90,000
• B) $191,000
• C) $180,000
• D) $94,000

---

Definitions:

Subjective

Based on or influenced by personal feelings, tastes, or opinions rather than objective facts.

Organizational Objectives

The defined goals and aims that an organization seeks to achieve in order to fulfill its mission and attain long-term success.

Measurable Outcomes

Specific, quantifiable results or achievements that can be used to evaluate the success of a project or intervention.

Compensation Decisions

The process of determining and allocating monetary and non-monetary rewards to employees in exchange for their work and performance.