Standard Costing

1. A standard cost is a carefully ____________ unit cist which is prepared for

each cost unit.
A. Pre-determined
B. Absorbed
C. Apportioned
D. None
2. Which of the following statement is correct?
A. Standard cost is an estimated or predetermined cost of
performing an operation or producing a good or service, under
normal conditions.
 B. Standard costing is a control technique that reports variances by
comparing actual costs to pre-set standards so facilitating action
through management by exception.
C. Both A&B
D. None
3. A standard cost is a predetermined unit cost based on expected direct
materials quantities and expected direct labour time, and priced at a
predetermined rate per unit of direct materials and rate per direct labour
hour and rate per hour of overhead.
A. The above statement is correct
B. The above statement is incorrect
4. The standard becomes a target against which performance can be
measured.
A. True
B. False
5. The difference between the standard and the actual is known as a: ______.
A. Abnormal loss
B. Abnormal gain
C. Variance
D. None
6. The main purposes of standard costs include:
A. Control and performance measurement
B. To value inventories
C. To simplify accounting
D. All of the above
7. A ___________ shows full details of the standard cost of each product.
A. Job cost card
B. Standard cost card
C. Time sheet
D. None
8. Uses of standard costing include:
A. It is an alternative system of cost accounting. In a standard
costing system, all units produced are recorded at their standard
cost of production.
B. When standard costs are established for products, they can be
used to prepare the budget.
C. It is a system of performance measurement.
D. It is also a system of control reporting
E. All of the above
9. Standard costing is most suited to organizations with:
A. Mass production of homogenous products
B. Repetitive assembly work
C. Both A&B
D. None
10. Standard costing is less suited to organizations that produce non-
homogenous products or where the level of human intervention high.
A. False
B. True
11. Identify the factors that differentiate standard costing from other
approaches to budgetary control.
A. Under standard costing, for costing purposes all stocks are
valued at their standard costs.
B. Standard costs are incorporated in the ledger accounts; budgets
are a memorandum record outside the ledger accounts.
C. Standard costs are set as unit costs; budgets tend to be set as
total costs.
D. All of the above
12. From the following identify types of standard.
A. Basic standards, Ideal standards
B. Attainable standards, Current standards
 C. Both A&B
D. None
13. A basic standard is ‘a standard established for use over a long period
from which a current standard can be developed’. Such standards do not
change from year to year.
A. The above statement is correct
B. The above statement is incorrect
14. Ideal standards make no allowances for normal losses, waste and
machine downtime.
A. True
B. False
15. While setting of standards, which of the following aspects should
management keep in mind?
A. Their value for control
B. Their motivational effect
C. Their usefulness for planning purposes
D. All of the above
16. In general, a standard cost will be set for each product, comprising:
A. Direct materials: standard quantity (kgs, liters etc.) x standard
price per unit
B. Direct wages: standard labour hours x standard hourly rate
C. Variable overhead: standard hours (labour or machine) x
standard rate per hour
D. Fixed overhead: budgeted overhead for the period x budgeted
standard hour (labour or machine)
E. All of the above
17. Standard costing may be used with either a system of absorption
costing or a system of marginal costing.
A. True
B. False
18. How often should standards be revised? From the following identify
the reasons why standards should be revised regularly.
A. Regular revision leads to standards which are meaningful targets
that employees may be motivated to achieve (for example,
through incentive schemes).
B. Variance analysis is more meaningful because reported
variances should be realistic.
C. In practice, standards are normally reviewed annually. Standards
by their nature are long-term averages and therefore some
variation is expected over time. The budgeting process can
therefore be used to review the standard costs in use.
D. All of the above
19. Idle time occur when the direct labour employees are being paid but
have no work to do. The causes of idle time may be:
A. A breakdown in production, for example a machine breakdown
that halts the production process.
B. Time spent waiting for work due to a bottleneck or hold-up at an
earlier stage in the production process.
C. Running out of a vital direct material, and having to wait for a new
delivery of the materials from a supplier.
D. A lack of work to do due to a lack of customer orders.
E. All of the above
20. What ways of allowing for idle time in a standard cost is used?
A. Include idle time as a separate element of the standard cost, so
that the standard cost of idle time is a part of the total standard
cost per unit.
B. Allow for a standard amount of idle time in the standard hours per
unit for each product. The standard hours per unit therefore
include an allowance for expected idle time.
C. Both A&B
 D. None

 e term standard cost refers to the:

o  average unit cost of product produced in the previous period
o  budgeted unit cost of product produced in a particular period
o  average unit cost of product produced by other companies
o  average unit cost of product produced in the current period

INCORRECT

 Your answer is incorrect. The correct answer is “budgeted unit cost of

product produced in a particular period” (option 2).
 The term budgeted cost refers to the:
o  estimated expenses of budgeted production
o  actual expenses of budgeted production
o  estimated expenses of actual production
o  actual expenses of actual production

INCORRECT

 Your answer is incorrect. The correct answer is “estimated expenses of

budgeted production” (option 1).
 A document that records the standard cost of a single unit of product is known
as:
o  bill of materials
o  bill of product
o  standard cost card
o  product expense card

INCORRECT

 Your answer is incorrect. The correct answer is “standard cost card” (option
3).
 The standards that require peak efficiency and do not allow any work
interruptions are known as:
o  normal standards
o  practical standards
o  ideal standards
o  budgeted standards

INCORRECT
  Your answer is incorrect. The correct answer is “ideal standards” (option 3).
 The Three Star Company produces a product known as product X. The company
uses a standard costing system and provides you the following information:
o Direct materials required to produce one unit of product X: 6 pounds
o Standard cost of direct materials: $10 per pound
o Normal wastage while producing one unit of product X: 0.5 pounds
Based on the above information, what is the standard direct materials cost per
unit of product X?
o  $60
o  $65
o  $50
o  $55

INCORRECT

 Your answer is incorrect. The correct answer is “$65” (option 2).

Computations:
(6 pounds + 0.5 pounds) × $10
= $65
 The following information belongs to John Manufacturing Company that uses a
standard costing system:
o Basic wage rate: $12 per hour
o Fringe benefits: $2 per hour
o Basic time: 2 hours per unit
o Allowance for down time: 0.3 hours per unit
o Allowance for brakes: 0.2 hours per unit
Based on the above information, what is the standard direct labor cost per unit?
o  $35
o  $28
o  $30
o  $32.2

INCORRECT

 Your answer is incorrect. The correct answer is “$35” (option 1).

Computations:
($12 + $2)* × (2 hours + 0.3 hours + 0.2 hours)**
= $14 × 2.5 hours
= $35
*Standard cost includes basic wage rate and other costs associated with direct
labor such as fringe benefits and employment taxes etc.
 **Standard time includes basic time required to produce a unit of product and
allowances for brakes, down time and rejected materials etc. 
 Which of the following is a correct formula for computing direct materials price
variance?
o  Standard quantity purchased × (Actual rate - Standard rate)
o  Actual quantity purchased × (Actual rate - Standard rate)
o  Standard quantity purchased × (Actual rate + Standard rate)
o  Actual quantity purchased × (Actual rate + Standard rate)

INCORRECT

 Your answer is incorrect. The correct answer is “Actual quantity purchased

× (Actual rate – Standard rate)” (option 2).
 A favorable direct materials price variance occurs when:
o  actual rate of direct materials is higher than standard rate of direct
materials
o  actual rate of direct materials is equal to standard rate of direct materials
o  actual rate of direct materials is less than standard rate of direct
materials
o  actual rate of direct materials is less than previous year's rate of direct
materials
CORRECT

 Awesome! Your answer is correct.

 The Ali BaBa Company uses a standard costing system. The company
established the following direct materials cost standards for one unit of product
K:

During the month of January, Ali BaBa purchased 25,000 ponds of materials at a
cost of $128,750 and used 10,250 ponds of materials to produce 2,500 units of
product K. The direct materials price variance for January was:
o  $3,750 favorable
o  $3,750 unfavorable
o  $3,700 favorable
o  $3,700 unfavorable

INCORRECT
  Your answer is incorrect. The correct answer is “$3,750 unfavorable”
(option 2).
Computations:
Direct materials price variance = (Actual quantity purchased × Actual rate)
– (Actual quantity purchased × Standard rate)
= $128,750 – (25,000 pounds × $5)
= $128,750 – $125,000
= $3,750 Unfavorable
Or direct materials price variance can be computed as follows:
Direct materials price variance = Actual quantity × (Actual rate – Standard rate)
= 25,000 ponds × ($5.15* – $5.00)
= 25,000 ponds × $0.15
= $3,750 Unfavorable
*Actual rate of direct materials: $128,750/25,000 ponds = $5.15
 The Crescent Manufacturing company established the following direct materials
cost standards for one unit of product X:

During the month of June, the company purchased 40,000 pounds of direct
materials at a cost of $199,200 and produced 5,000 units of product X using
19,750 pounds of direct materials. The direct materials quantity variance for June
was:
o  800 favorable
o  800 unfavorable
o  1,250 unfavorable
o  1,250 favorable

INCORRECT

 Your answer is incorrect. The correct answer is “$1,250 favorable” (option

4).
Computations:
Direct materials quantity variance = (Actual quantity used × Standard rate)
– (Standard quantity allowed × Standard rate)
= (19,750 pounds × $5) – (*20,000 pounds × $5)
= $98,750 – $100,000
= $1,250 favorable
Or direct materials quantity variance can be computed as follows:
Direct materials quantity variance = Standard rate × (Actual quantity used –
Standard quantity allowed)
= $5 × (19,750 pounds – 20,000 pounds)
 = $5 × 250 pounds
= $1,250 favorable
*5,000 units × 4 pounds per unit = 20,000 pounds
 The Carl Care Company established the following direct labor cost standards for
one unit of product Z:
o Standard hours: 1.5 hours
o Standard rate: $20 per hour
o Standard cost: $30 (1.5 hours @ $20 per hour)
During the month of July, 20,000 direct labor hours were worked and 12,500
units of product Z were manufactured. The total wages related to direct labor in
July were $405,000. The direct labor rate variance for July was:
o  $5,000 unfavorable
o  $5,000 favorable
o  $30,000 favorable
o  $30,000 unfavorable

INCORRECT

 Your answer is incorrect. The correct answer is “$5,000 unfavorable”

(option 1).
Computations:
Direct labor rate variance = Actual hours worked × (Actual rate – Standard rate)
= 20,000 hours × ($20.25* – $20)
= 20,000 hours × $0.25
= $5,000 unfavorable
*$405,000/20,000 hours = $20.25 per hour
 The “standard hours allowed” or “standard quantity allowed” is equal to:
o  actual output in units × standard input allowed
o  actual output in units × standard output allowed
o  standard output in units × standard input allowed
o  actual input in units × standard output allowed

INCORRECT

 Your answer is incorrect. The correct answer is “actual output in units ×

standard input allowed” (option 1).
 The Carl Care Company established the following direct labor cost standards for
one unit of product Z:
o Standard hours: 1.5 hours
o Standard rate: $20 per hour
o Standard cost: $30 (1.5 hours @ $20 per hour)
 During the month of July, 20,000 direct labor hours were worked and 12,500
units of product Z were manufactured. The total wages related to direct labor in
July were $405,000. The direct labor efficiency variance for July was:
o  $25,000 favorable
o  $25,000 unfavorable
o  $30,000 favorable
o  $30,000 unfavorable

CORRECT

 Awesome! Your answer is correct.

Computations:
Direct labor efficiency variance = Standard rate × (Actual hours worked –
Standard hours allowed)
= $20 × (20,000 hours – *18,750 hours)
= $20 × 1,250 hours
= $25,000 unfavorable
*Standard hours allowed are computed by multiplying the actual units produced
by the standard hours per unit: 12,500 units × 1.5 hours
 Which of the following cannot be a reason of unfavorable direct materials price
variance?
o  Sudden rise in price of materials
o  Quality of materials purchased
o  Appointment of inexperienced workers
o  Inefficient standard setting

INCORRECT

 Your answer is incorrect. The correct answer is “appointment of

inexperienced workers” (option 3).
 Which of the following cannot be a reason of unfavorable direct materials
quantity variance?
o  Unmotivated workers
o  Lack of supervision
o  Frequent power failures
o  Uneconomical order size

CORRECT

 Awesome! Your answer is correct.

 Which of the following is not likely to be a reason of unfavorable direct labor rate
variance?
o  Poor estimates while setting direct labor standards
 o  An increase in labor rates and overtime premium
o  Frequent break downs
o  Assignment of easy tasks to highly skilled workers

INCORRECT

 Your answer is incorrect. The correct answer is “frequent break downs”

(option 3).
 Which of the following is not likely to be a reason of unfavorable direct labor
efficiency variance?
o  Increase in direct materials prices
o  Frequent break downs during production process
o  Lack of proper supervision
o  Use of old, outdated or faulty equipment

INCORRECT

 Your answer is incorrect. The correct answer is “increase in direct materials

prices” (option 1).
 During the month of December actual direct labor cost amounted to $39,550, the
standard direct labor rate was $10 per hour and the direct labor rate variance
amounted to $450 favorable. The actual direct labor hours worked were:
o  3,955 hours
o  4,000 hours
o  3,910 hours
o  4,500 hours

INCORRECT

 Your answer is incorrect. The correct answer is “4,000 hours” (option 2).
Computations:
Direct labor rate variance = (AH × AR) – (AH × SR)
-$450* = $39,550 – (AH × $10)
-$450 – $39,550 = -$10AH
-$40,000 = -$10AH
AH = $40,000/$10
AH = 4,000 hours
AH = Actual hours
AR = Actual rate
SR = Standard rate
*The negative sign (-) indicates a favorable variance because a favorable
variance means less production cost than expected.
 During the month of January, the standard cost of actual hours worked amounted
to $25,000, the standard direct labor rate was $10 per hour and the direct labor
 efficiency variance amounted to $1,000 favorable. The standard hours allowed
for actual production were:
o  2,500 hours
o  2,400 hours
o  10,000 hours
o  2,600 hours

CORRECT

 Awesome! Your answer is correct.

Computations:
Direct labor efficiency variance = (AH × SR) – (SH × SR)
-$1,000* = $25,000 – (SH × $10)
-$1,000 – $25,000 = -$10SH
-$26,000 = -$10SH
SH = $26,000/$10
SH = 2,600 hours
AH = Actual hours
SR = Standard rate
SH = Standard hours
*The negative sign (-) indicates a favorable variance because a favorable
variance means less production cost than expected.
 During the month of January, the standard cost of actual hours worked amounted
to $42,000, the standard hours allowed for actual production were 2,000 and the
direct labor efficiency variance amounted to $2,000 unfavorable. The standard
direct labor rate per hour was:
o  $22 per hour
o  $20 per hour
o  $21 per hour
o  $10.5 per hour

INCORRECT

 Your answer is incorrect. The correct answer is “$20 per hour” (option 2).
Computations:
Direct labor efficiency variance = (AH × SR) – (SH × SR)
$2,000 = $42,000 – (2,000 × SR)
$2,000 – $42,000 = -2,000SR
-$40,000 = -2,000SR
SR = $40,000/2,000
SR = $20 per hour
AH = Actual hours
SR = Standard rate
SH = Standard hours
 You are provided the following information for December 2017:
 o Actual direct labor hours used: 3,000
o Standard direct labor hours allowed: 2,950
o Actual variable manufacturing overhead rate: $12.20/direct labor hour
o Standard variable manufacturing overhead rate: $12.30/direct labor hour
Based on the above information, the variable manufacturing overhead rate
variance is:
o  295 favorable
o  295 unfavorable
o  $300 unfavorable
o  $300 favorable

INCORRECT

 Your answer is incorrect. The correct answer is “$300 favorable” (option 4).
Computations:
Variable manufacturing overhead rate variance = (Actual hours × Actual rate)
– (Actual hours × Standard rate)
= (3,000 hours × $12.2) – (3,000 hours × $12.3)
= $36,600 – $36,900
= $300 favorable
Or we can compute the above variance by using factored formula as follows:
Variable manufacturing overhead rate variance = Actual hours × (Actual rate –
Standard rate)
= 3,000 hours × ($12.2 – $12.3)
= 3,000 hours × $0.1
= $300 favorable
 Variable manufacturing overhead rate variance is also known as:
o  variable manufacturing overhead efficiency variance
o  variable manufacturing overhead spending variance
o  variable manufacturing overhead usage variance
o  none of the above

INCORRECT

 Your answer is incorrect. The correct answer is “variable manufacturing

overhead spending variance” (option 2).
 The Mexico Company’s standard variable manufacturing overhead rate was $20
per hour calculated on the basis of machine hours. According to standards, the
company took 1 hour to complete three units (i.e., 20 minutes per unit). During
the month of June, the company operated for 4,100 hours and manufactured
12,000 units of product. The actual variable manufacturing overhead for June
was $85,000.
On the basis of above data, the variable manufacturing overhead efficiency
variance for June was:
 o  $3,000 favorable
o  $3,000 unfavorable
o  $2,000 unfavorable
o  $2,000 favorable

INCORRECT

 Your answer is incorrect. The correct answer is “$2,000 unfavorable”

(option 3).
Computations:
Variable manufacturing overhead efficiency variance = (Actual hours × Standard
overhead rate) – (Standard hours × Standard overhead rate)
= (4,100 hours × $20) – (*4,000 hours × $20)
= $82,000 – $80,000
= 2,000 unfavorable
Or we can compute above variance using factored formula as follows:
Variable manufacturing overhead efficiency variance = Standard overhead rate ×
(Actual hours – Standard hours)
= $20 × (4,100 hours – *4,000 hours)
= $20 × 100 hours
= $2,000 hours
*Standard hours allowed for actual production:
The standard time to complete one unit is 20 minutes. Therefore, the standard
time to complete 12,000 units would be 240,000 minutes or 4,000 hours as
computed below:
12,000 units × 20 minutes = 240,000 minutes
240,000 minutes/60 = 4,000 hours

Variance analysis
1. A variance is the difference between a planned, budgeted or standard
cost and the actual cost incurred. The same comparisons may be
made for revenues.
1.
1. True
2. False
2. The process by which the total difference between standard and actual
results is analysed is known as variance analysis.
1.
1. False
2. True
3. Variances can be divided into:
1.
1. Variable cost variances
 2. Sales variances
3. Fixed production overhead variances
4. All of the above
4. A cost variance is the difference between an actual cost and a
standard cost.

o When actual cost is higher than standard cost, the cost variance
is adverse (A) or unfavourable (U).
o When actual cost is less than standard cost, the cost variance is
favourable (F).
1. The above is correct
2. The above is incorrect
5. Variances are calculated, relating to:
1.
1. Direct materials, direct labour
2. Variable production overhead and fixed production overhead
3. Both A&B
4. None
6. In a cost accounting system, cost variances are adjustments to the
profit in an accounting period.

o Favourable variances increase the reported profit.
o Adverse variances reduce the reported profit.
1. True
2. False
7. The method of calculating cost variances is similar for all variable
production cost items (direct materials, direct labour and variable
production overhead), while a different method of calculating cost
variances is required for fixed production overhead.
1.
1. The above statement is incorrect
2. The above statement is correct
8. Variances might be reported in a statement for the accounting period
that reconciles the budgeted profit with the actual profit for the period.
This statement is known as:
1.
1. Statement of evaluation
2. Statement of Reconciliation
3. Operating statement
4. None
9. The direct materials total cost variance can be analysed into:
1.
1. Price variance and usage variance
2. Wage variance and usage variance
3. Efficiency variance and price variance
4. Usage variance and rate variance
10. If there are two or more direct materials, a price/usage variance
is calculated separately for each material.
1.
1. False
2. True
11. What are the possible causes of favourable materials price
variances?
1.
1. Different suppliers were used and these charged a lower price
(favourable price variance) than the usual supplier.
2. Materials were purchased in sufficient quantities to obtain a bulk
purchase discount (a quantity discount), resulting in a favourable
price variance.
3. Materials were bought that were of lower quality than standard
and so cheaper than expected.
4. All of the above
12. What are the possible causes of adverse materials price
variances?
1.
1. Different suppliers were used and these charged a higher price
(adverse price variance) than the usual supplier.
2. Suppliers increased their prices by more than expected. (Higher
prices might be caused by an unexpected increase in the rate of
inflation.)
3. There was a severe shortage of the materials, so that prices in the
market were much higher than expected.
4. Materials were bought that were better quality than standard and
more expensive than expected.
5. All of the above
13. What are the possible causes of favourable materials usage
variances?
1.
1. Wastage rates were lower than expected.
 2. Improvements in production methods resulted in more efficient
usage of materials (favourable usage variance).
3. Both A&B
4. None
14. Possible causes of adverse materials usage variances include:
1.
1. Wastage rates were higher than expected.
2. Poor materials handling resulted in a large amount of breakages
(adverse usage variance). Breakages mean that a quantity of
materials input to the production process are wasted.
3. Materials used were of cheaper quality than standard, with the
result that more materials had to be thrown away as waste.
4. All of the above
15. The direct labour total cost variance can be analysed into:
1.
1. Rate variance and efficiency variance
2. Price variance and efficiency variance
3. Wage variance and usage variance
4. None
16. The direct labour rate variance is calculated for the actual
number of hours ______ for.
1.
1. Worked
2. Paid
3. Both A&B
4. None
17. If there are two or more different types or grades of labour, each
paid a different standard rate per hour, a rate variance is calculated
separately for each labour grade.
1.
1. The above is true
2. The above is false
18. The direct labour efficiency variance is calculated for the hours
_______ on the units produced.
1.
1. Used/worked
2. Paid
3. Both A&B
4. None
 19. Idle time occurs when the direct labour employees are being
paid but have no work to do. A feature of idle time is that it is recorded,
and the hours ‘lost’ due to idle time are measured. Idle time variance is
part of the efficiency variance.
1.
1. The above statement is incorrect
2. The above statement is correct
20. Calculating the idle time variance will affect the calculation of
the direct labour efficiency variance. If idle time occurs but is not
recorded the idle time variance is part of the direct labour efficiency
variance.
1.
1. True
2. False
21. Possible causes of favourable labour rate variances include:
1.
1. Using direct labour employees who were relatively inexperienced
and new to the job (favourable rate variance, because these
employees would be paid less than ‘normal’).
2. Actual pay increase turning out to be less than expected.
3. Both A&B
4. None
Target costing
An estimated price, which is expected to be paid by customers for
particular market offering is classified as
A. target price
B. target cost
C. outsource price
D. off shore price
Answer 
MCQ: An estimated cost per unit in long run, which enables the company to
achieve it's per unit target, operating income is classified as
A. target operating income per unit
B. target cost per unit
C. total current full cost
D. total cost per unit
Answer 
MCQ: The target price is subtracted from per unit target operating income
to calculate
A. total current full cost
B. total cost per unit
C. target operating income per unit
D. target cost per unit
Answer 
MCQ: An income, which a company aims to earn by selling each unit of
market offering is classified as
A. target operating income per unit
B. target cost per unit
C. total current full cost
D. total cost per unit
Answer 
MCQ: The process which leads to disassembling and analysis of
competitors, operating activities to become acquainted with competitors'
technologies is called
A. outsource engineering
B. reverse engineering
C. target engineering
D. off shore engineering
Answer The fixed cost is divided by break-even revenues to calculate
A. cost margin
B. fixed margin
C. revenue margin
D. contribution margin
Answer 
MCQ: If break-even number of units are 120 units and the fixed cost is $62000, then the
contribution margin per unit will be
A. $74,400
B. $7,440,000
C. $516.67
D. $51,667
Answer 
MCQ: If the break-even number of units are 200 units and the fixed cost is $80000, then the
contribution margin per unit will be
A. $400
B. $600
C. $800
D. $1,000
 Answer 
MCQ: At the break-even point, an operating income must be equal to
A. $3,000
B. $2,000
C. $1,000
D. zero
Answer 
MCQ: If the contribution margin per unit is $700 per unit and the break-even per unit
is $40, then the fixed cost would be
A. $35,000
B. $28,000
C. $17,500
D. $82,000
when the fixed cost is divided into contribution margin per unit, it gives
A. fixed output
B. variable output
C. breakeven number of units
D. total number of units
Answer 
MCQ: If the contribution margin percentage is 30%, the selling price is
$5000, then the contribution margin per unit will be
A. $900
B. $1,200
C. $1,500
D. $1,600
Answer 
MCQ: If the revenue is $15000, the total variable cost is $5000 and the fixed
cost $2000 then the operating income will be
A. $4,000
B. $8,000
C. $5,000
D. $3,000
Answer 
MCQ: If the fixed cost is $30000, the contribution margin percentage is
40%, an actual variable quantity is 70, the actual and budgeted overhead
cost of allocation is $8650 and $3500 respectively, then the variable ove
the breakeven revenue will be
A. $120,000
 B. $75,000
C. $12,000
D. $175,000
Answer 
MCQ: If the budgeted sales in unit is 50 and the breakeven sales in unit is
12, then the margin of safety in units will be
A. 62
B. 38
C. 48
D. 58
AnswerPDF Download
MCQ: A measure which evaluates overall tradeoff and effect among non-
financial performance measure is
A. non-financial measures
B. financial measures
C. effective measure
D. lump sum measure
Answer 
MCQ: In overhead cost variance analysis, the variable overhead does not
include
A. favorable volume variance
B. profit volume variance
C. cost volume variance
D. production volume variance
Answer 
MCQ: The measure which provides the feedback on manager's
performance, considering individual aspects only is classified as
A. effectively measure
B. lump sum measure
C. non-financial measures
D. financial measures
Answer 
MCQ: In overhead cost variance analysis, the fixed overhead does not
include
A. efficiency variance
B. unfavorable variance
 C. production volume variance
D. favorable variance
Answer 
MCQ: If an actual variable quantity is 70, the actual and budgeted overhead
cost of allocation is $8650 and $3500 respectively, then the variable
overhead spending variance will be
A. $660,500
B. $560,500
C. $460,500
D. $360,500
E.