Q.1
Material Usage Variance=Material Mix Variance +…………..
  • Material Yield Variance
  • Material cost variance
  • Material price variance
  • Material quantity variance
Q.2
Total Material cost variance =
  • Standard cost of materials-actual cost of materials
  • Budgeted cost of materials- actual cost of materials
  • Standard cost of materials-budgeted cost of materials
  • Actual cost of materials- budgeted cost of materials
Q.3
The technique of standard costing may not be applicable in case of
  • Large concerns
  • Small concerns
  • All concerns
  • Both b & c
Q.4
Standards set provide yardsticks against which………….are compared.
  • Budgeted costs
  • Estimated costs
  • Actual costs
  • None of these
Q.5
Volume variance is divided into……………
  • Capacity variance, calendar variance andExpenditure variance
  • Capacity variance, calendar variance and efficiency variance
  • Capacity variance, expenditure variance and efficiency variance
  • Calendar variance, expenditure variance and efficiency variance
Q.6
Idle time variance is………….
  • Idle time x actual labour
  • Idle time x standard rate
  • Idle time x budgeted labour rate
  • Idle time x historical cost
Q.7
Labour cost variance is the difference between standard cost of labourand………..
  • Budgeted cost of labour
  • Estimated cost of labour
  • Actual cost of labour
  • None of these
Q.8
Material price variance is the difference between standard and actualprices of materials used multiplied by………………..
  • Actual quantity of materials used
  • Budgeted quantity of materials used
  • Standard quantity of materials used
  • Either a or b
Q.9
Management by exception is exercising control over………..
  • Costs
  • Favourable items
  • Unfavourable items
  • all of these
Q.10
The deviation of the actual cost or profit or sales from the standardcost or profit or sale is known as …………
  • Difference
  • Variance
  • Discrepancy
  • Inconsistency
Q.11
Three types of standards are…………..
  • Current standard, basic standard and normal standard
  • Currency standard, basel standard and actual standard
  • Actual standard, estimated standard and expected standard
  • Expected standard, ideal standard and current standard
Q.12
Standard costing is more widely applied in…………………industries.
  • Process and engineering
  • jobbing industries
  • construction industry
  • all of these
Q.13
The limitations of …………………………has led to the development ofstandard costing system.
  • Historical costing system
  • cost accounting
  • management accounting
  • none of these
Q.14
Standard cost is a …………..cost
  • Predetermined
  • historical
  • actual
  • final
Q.15
The budget which commonly takes the form of budgeted profit andloss account and balance sheet is
  • cash budget
  • master budget
  • flexible budget
  • fixed budget
Q.16
In case of materials the key factor may be.
  • Insufficient advertising
  • restrictions imposed by quota
  • low market demand
  • shortage of power
Q.17
The budget that is prepared first of all is…………..
  • Cash budget
  • master budget
  • budget for the key factor
  • sales budget
Q.18
The difference between fixed and variable cost has a specialsignificance in the preparation of
  • Flexible budget
  • master budget
  • cash budget
  • sales budget
Q.19
In the case of plant, the limiting factor may be:
  • Insufficient capacity
  • shortage of experienced salesmen
  • general shortage of power
  • shortage of materials
Q.20
The primary difference between a fixed budget and a variable(flexible) budget is that a fixed budget:
  • Includes only fixed costs, while a variable budget includes only variable costs.
  • Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with expenses which vary with sales.
  • Cannot be changed after the period begins, while a variable budget can be changed after the period begins.
  • Is a plan for a single level of sales(or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity)
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