MCQOPTIONS
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MCQOPTIONS
This section includes 192 Mcqs, each offering curated multiple-choice questions to sharpen your Cost Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 151. |
If the flexible budget variance is $95000 and an actual cost is $40000, then the flexible budget cost would be |
| A. | $135,000 |
| B. | $45,000 |
| C. | $50,000 |
| D. | $55,000 |
| Answer» E. | |
| 152. |
If a company uses large quantity of input than the budgeted quantity for output level, then the company is known to be |
| A. | variable growth of company |
| B. | constant growth of company |
| C. | company is inefficient |
| D. | company is efficient |
| Answer» D. company is efficient | |
| 153. |
The difference between actual input variance and the budgeted input variance is called |
| A. | price variance |
| B. | actual output price |
| C. | budgeted output price |
| D. | actual selling price |
| Answer» B. actual output price | |
| 154. |
The performance is evaluated only on the basis of price variance, if the performance evaluation is |
| A. | positive |
| B. | negative |
| C. | zero |
| D. | one |
| Answer» B. negative | |
| 155. |
An efficiency variance is 200 units and the actual input quantity is 500 units, then the budgeted input quantity will be |
| A. | 300 units |
| B. | 700 units |
| C. | 800 units |
| D. | 500 units |
| Answer» B. 700 units | |
| 156. |
The variance is the stated difference between expected performance and the |
| A. | revenue planning |
| B. | actual results |
| C. | marketing results |
| D. | cost planning |
| Answer» C. marketing results | |
| 157. |
A costing system, which focuses on individual activities as the particular cost object is classified as |
| A. | activity based costing |
| B. | improved costing |
| C. | learned improvements |
| D. | positive effectiveness |
| Answer» B. improved costing | |
| 158. |
The static budget amount is subtracted from the actual result to calculate |
| A. | static budget receipts |
| B. | static budget deviation |
| C. | static budget variance |
| D. | multiple budget variance |
| Answer» D. multiple budget variance | |
| 159. |
The point at which the control functions and the planning of management come together is known as |
| A. | functioning |
| B. | variance |
| C. | variation |
| D. | deviation |
| Answer» C. variation | |
| 160. |
The centers such as revenue, cost, investment and profit all are known as |
| A. | marketing center |
| B. | financial center |
| C. | responsibility center |
| D. | planning center |
| Answer» D. planning center | |
| 161. |
The difference between actual quantity use and input quantity for output is multiplied with budgeted price to calculate |
| A. | efficiency deviation |
| B. | efficiency variance |
| C. | budgeted variance |
| D. | usage variance |
| Answer» C. budgeted variance | |
| 162. |
The level of used input to achieve a determined level of output is termed as |
| A. | efficiency |
| B. | effectiveness |
| C. | growth evaluation |
| D. | performance evaluation |
| Answer» B. effectiveness | |
| 163. |
The flexible budget variance is subtracted from actual cost to calculate |
| A. | flexible budget cost |
| B. | flexible investment cost |
| C. | static budget cost |
| D. | static variable cost |
| Answer» B. flexible investment cost | |
| 164. |
The cash sales, accounts receivables and rental receipts all are known as |
| A. | cash receipts |
| B. | budget receipts |
| C. | goods manufactured |
| D. | total goods sold |
| Answer» B. budget receipts | |
| 165. |
If the budget sales units are 8000, the ending inventory is 2000 units and the beginning inventory is 3000, then the budget production would be |
| A. | 11000 units |
| B. | 13000 units |
| C. | 10000 units |
| D. | 7000 units |
| Answer» E. | |
| 166. |
The schedule of expected disbursements and cash receipts is considered as |
| A. | planned schedule |
| B. | cash budget |
| C. | market budget |
| D. | price schedule |
| Answer» C. market budget | |
| 167. |
The balancing of all aspects of products or services and all the departments in the company are classified as |
| A. | annual profit plan |
| B. | budgeting |
| C. | coordination |
| D. | complex plan |
| Answer» D. complex plan | |
| 168. |
If an actual input price is $70 and the budgeted input price is $40, then the price variance will be |
| A. | $120 |
| B. | $50 |
| C. | $110 |
| D. | $30 |
| Answer» E. | |
| 169. |
If the budgeted price of input is $50, actual quantity of input is 150 units and the allowed budgeted quantity of input is 60 units then efficiency variance will be |
| A. | $4,500 |
| B. | $3,500 |
| C. | $2,500 |
| D. | $1,500 |
| Answer» B. $3,500 | |
| 170. |
An actual cost is subtracted from flexible budget cost to calculate |
| A. | positive cost variance |
| B. | negative cost variance |
| C. | flexible budget variance |
| D. | flexible cost variance |
| Answer» D. flexible cost variance | |
| 171. |
An efficiency variance is subtracted from actual input quantity to calculate |
| A. | actual quantity manufactured |
| B. | budgeted quantity manufactures |
| C. | budgeted quantity sold |
| D. | budgeted input quantity |
| Answer» E. | |
| 172. |
The difference between an actual budget and the corresponding amount in static budget is classified as |
| A. | correspondent budget |
| B. | full budget variance |
| C. | methodology variance |
| D. | static budget variance |
| Answer» E. | |
| 173. |
If an actual result is $50000 and the static budget variance is $25000, then the static budget amount will be |
| A. | $75,000 |
| B. | $25,000 |
| C. | $35,000 |
| D. | $45,000 |
| Answer» C. $35,000 | |
| 174. |
If the actual price input is $500, the budgeted price of input is $300 and the actual quantity of input is 50 units, then the price variance would be |
| A. | $4,000 |
| B. | $6,000 |
| C. | $8,000 |
| D. | $10,000 |
| Answer» E. | |
| 175. |
If an actual result is $250000 and the static budget amount is $150000, then the static budget variance for operating income will be |
| A. | $400,000 |
| B. | $500,000 |
| C. | $100,000 |
| D. | $600,000 |
| Answer» D. $600,000 | |
| 176. |
The master budget, which is based on the planned output level at the start of budget period is considered as |
| A. | static budget |
| B. | varied budget |
| C. | marketing budget |
| D. | methodological budget |
| Answer» B. varied budget | |
| 177. |
The price variance for direct manufacturing labor is referred as |
| A. | direct variance |
| B. | rate variance |
| C. | labor variance |
| D. | manufacturing variance |
| Answer» C. labor variance | |
| 178. |
If the budgeted price of input is $70, actual quantity of input is 250 units and the allowed budgeted quantity of input is 90 units, then efficiency variance will be |
| A. | $23,800 |
| B. | $11,200 |
| C. | $12,200 |
| D. | $13,200 |
| Answer» C. $12,200 | |
| 179. |
The budgeted input quantity is added in to efficiency variance to calculate |
| A. | actual input quantity |
| B. | actual output quantity |
| C. | actual input price |
| D. | actual output price |
| Answer» B. actual output quantity | |
| 180. |
In cost accounting, the goal of variance analysis is to |
| A. | understand variance reason |
| B. | improve future performance |
| C. | learning of improvement |
| D. | all of above |
| Answer» E. | |
| 181. |
In management control, an efficiency variance is also referred as |
| A. | control variance |
| B. | uncontrolled variance |
| C. | usage variance |
| D. | effective variance |
| Answer» D. effective variance | |
| 182. |
If an efficiency variance is 200 units and the actual input quantity is 750 units, then the budgeted input quantity will be |
| A. | 275 units |
| B. | 125 units |
| C. | 550 units |
| D. | 650 units |
| Answer» D. 650 units | |
| 183. |
If the input used in manufacturing is smaller in quantity and output produced is greater in quantity, this will be categorized under |
| A. | lesser effective |
| B. | greater efficiency |
| C. | smaller efficiency |
| D. | greater effective |
| Answer» C. smaller efficiency | |
| 184. |
If the static budget variance is $46000 and the static budget amount is $15000, then an actual result would be |
| A. | $80,000 |
| B. | $71,000 |
| C. | $61,000 |
| D. | $31,000 |
| Answer» E. | |
| 185. |
If the budgeted input quantity is 350 units and efficiency variance is 100, then an actual input quantity will be |
| A. | 250 units |
| B. | 450 units |
| C. | 550 units |
| D. | 650 units |
| Answer» C. 550 units | |
| 186. |
If the price variance is $20 and the budgeted input price is $70, then an actual price will be |
| A. | $90 |
| B. | $50 |
| C. | −$50 |
| D. | $100 |
| Answer» B. $50 | |
| 187. |
If the budgeted input price is $80 and the price variance is $40, then an actual price will be |
| A. | $20 |
| B. | $120 |
| C. | $40 |
| D. | $60 |
| Answer» C. $40 | |
| 188. |
If the flexible budget variance is $105000, the actual cost is $65000 then the flexible budget cost will be |
| A. | $40,000 |
| B. | $50,000 |
| C. | $150,000 |
| D. | $170,000 |
| Answer» B. $50,000 | |
| 189. |
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 |
| A. | $15,000 |
| B. | $13,000 |
| C. | $11,000 |
| D. | $9,000 |
| Answer» B. $13,000 | |
| 190. |
If the actual input price is $150 and the budgeted input price is $80, then the price variance will be |
| A. | $130 |
| B. | $70 |
| C. | $150 |
| D. | $80 |
| Answer» C. $150 | |
| 191. |
The standard input allows one unit, to be divided by standard cost per output unit, for variable direct cost input to calculate |
| A. | standard price per input unit |
| B. | standard price per output unit |
| C. | standard cost per input unit |
| D. | standard cost per output unit |
| Answer» B. standard price per output unit | |
| 192. |
The consideration of decreased operating income relative to budgeted amount, in static budget is classified as |
| A. | revenue variance |
| B. | cost variance |
| C. | favorable variance |
| D. | unfavorable variance |
| Answer» E. | |