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1 | |
A standard cost is a basis for comparison of actual costs against planned costs. The types of standard that may be most effective for control purposes
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| | A) | are expected to be achieved under any circumstances
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| | B) | contain reasonable allowances for operational inefficiencies
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| | C) | contain no allowances for normal loss, waste and machine downtime
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| | D) | remain unchanged for successive accounting periods
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2 | |
Flexed budgets are used to show |
| | A) | the impact of the removal of 'padding' from operational budgets |
| | B) | perfect performance under perfect conditions |
| | C) | revised expected costs and revenues as a result of changes in activity levels |
| | D) | changes to budget targets following poor performance |
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3 | |
Variance analysis is used to compare planned and actual performance. Which of the following is not a reason for the occurrence of variances?
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| | A) | operations being out of control
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| | B) | the use of standards that are out of date
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| | C) | actual performance being the same as standard performance
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| | D) | measurement errors
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4 | |
Direct materials variances may be analysed into
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| | A) | usage and efficiency variances
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| | B) | price and usage variances
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| | C) | efficiency and price variances
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| | D) | price and productivity variances
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5 | |
Direct labour variances may be analysed into
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| | A) | efficiency and rate variances
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| | B) | usage and rate variances
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| | C) | usage and price variances
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| | D) | efficiency and price variances
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6 | |
Which of the following may be the likely reason for an adverse materials variance?
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| | A) | employment of higher skilled operators
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| | B) | price reductions and reduced wastage
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| | C) | overestimated materials costs used in the standards
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| | D) | increased waste and price increases
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7 | |
Which of the following may be the likely reason for a favourable direct labour rate variance?
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| | A) | overestimated standard labour time per unit
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| | B) | overestimated standard labour cost pending the result of wage negotiations
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| | C) | changes to the product specification which reduced manufacturing time
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| | D) | reduction in direct labour costs due to a strike in the factory
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8 | |
Which of the following is not likely to be the reason for a favourable materials usage variance?
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| | A) | employment of lower skilled operators
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| | B) | supplier invoice error
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| | C) | improved stock control
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| | D) | use of higher quality materials
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9 | |
Questions 9 and 10 refer to the following diagram:  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::ch12a::/sites/dl/free/0077098250/66362/ch12a.gif','popWin', 'width=506,height=132,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">ch12a (50.0K)</a>]]>ch12a
The materials usage variance (in pounds) is |
| | A) | 4,000 A |
| | B) | 4,000 F |
| | C) | 5,000 F |
| | D) | 5,000 A |
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10 | |
The materials price variance (in pounds) is |
| | A) | 2,000 A |
| | B) | 3,000 A |
| | C) | 3,000 F |
| | D) | 2,000 F |
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2003 A McGraw-Hill Online Learning Centre