Flexible Budget And Management Control(Cost Accounting ) Questions and Answers

Question 1. If the actual price input is $700, the budgeted price of input is $400 and the actual quantity of input are 50 units, then the price variance will be
  1.    $15,000
  2.    $13,000
  3.    $11,000
  4.    $9,000
Explanation:-
Answer: Option A. -> $15,000
Answer: (a).$15,000
Question 2. The standard input allows one unit, to be divided by standard cost per output unit, for variable direct cost input to calculate
  1.    standard price per input unit
  2.    standard price per output unit
  3.    standard cost per input unit
  4.    standard cost per output unit
Explanation:-
Answer: Option A. -> standard price per input unit
Answer: (a).standard price per input unit
Question 3. If the actual input price is $150 and the budgeted input price is $80, then the price variance will be
  1.    $130
  2.    $70
  3.    $150
  4.    $80
Explanation:-
Answer: Option B. -> $70
Answer: (b).$70
Question 4. The consideration of decreased operating income relative to budgeted amount, in static budget is classified as
  1.    revenue variance
  2.    cost variance
  3.    favorable variance
  4.    unfavorable variance
Explanation:-
Answer: Option D. -> unfavorable variance
Answer: (d).unfavorable variance
Question 5. If the flexible budget variance is $105000, the actual cost is $65000 then the flexible budget cost will be
  1.    $40,000
  2.    $50,000
  3.    $150,000
  4.    $170,000
Explanation:-
Answer: Option A. -> $40,000
Answer: (a).$40,000
Question 6. In the budget hierarchy, the material handling cost is
  1.    fixed manufacturing cost
  2.    batch level cost
  3.    per unit cost
  4.    factory overall cost
Explanation:-
Answer: Option B. -> batch level cost
Answer: (b).batch level cost
Question 7. An expected performance of the company is also known as
  1.    price requirements
  2.    supply requirements
  3.    budgeted performance
  4.    demand requirements
Explanation:-
Answer: Option C. -> budgeted performance
Answer: (c).budgeted performance
Question 8. If the actual payment to labor is $1200 and the budgeted rate is $1000, then the labor price variance would be
  1.    less than zero
  2.    equal to zero
  3.    favorable
  4.    unfavorable
Explanation:-
Answer: Option D. -> unfavorable
Answer: (d).unfavorable
Question 9. If the actual result is $65000 and the static budget variance is $35000, then the static budget amount will be
  1.    $30,000
  2.    $100,000
  3.    $200,000
  4.    $30,000
Explanation:-
Answer: Option D. -> $30,000
Answer: (d).$30,000
Question 10. The determined price at which the company expects to pay for every single unit is called
  1.    standard price
  2.    input price
  3.    actual input
  4.    output price
Explanation:-
Answer: Option A. -> standard price
Answer: (a).standard price
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