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objective 7 4 1 the flexible budget variance for direct cost inputs can be further s 4301008

 

Objective 7.4

 

1) The flexible-budget variance for direct cost inputs can be further subdivided into a ________.

A) static-budget variance and a sales-volume variance

B) sales-volume variance and an efficiency variance

C) price variance and an efficiency variance

D) static-budget variance and a price variance

 

2) An efficiency variance reflects the difference between ________.

A) actual input quantities used last period and current period

B) an actual input quantity and a budgeted input quantity

C) an actual input quantity used in a company and its main competitor's

D) a standard input quantity in a company and its main competitor's

3) Which of the following is an advantage of using actual input data from past periods to develop a budget?

A) Past inefficiencies are excluded in the preparation of new budget.

B) Expected future changes are incorporated in the preparation of new budget.

C) Information is available at a low cost.

D) Data represents the ideal performance.

 

4) Which of the following is a disadvantage of using the standards developed by a firm itself to develop a budget?

A) A firm's inefficiencies will be part of the data.

B) They are not based on realized benchmarks.

C) The expected future changes are not included in the standards.

D) The flexible-budget amounts are difficult to determine.

 

5) A price variance reflects the difference between ________.

A) a standard input price in a company and its competitor

B) an actual input price used last period and current period

C) an actual input price used in a company and its competitor

D) an actual input price and a budgeted input price

 

6) Standard cost per output unit for each variable direct cost input is calculated by multiplying ________.

A) standard input allowed for one output unit by standard price per input unit

B) standard input allowed for one output unit by actual price per input unit

C) actual input allowed for one output unit by standard price per input unit

D) actual input allowed for one output unit by actual price per input unit

7) Standard material cost per kg of raw material is $5. Standard material allowed per unit is 2 Kg. Actual material used per unit is 2.5 Kg. Actual cost per kg is $4.5. What is the standard cost per output unit?

A) $9

B) $11.25

C) $10

D) $12.5

 

8) Standard labor rate is $8 per hour. Standard labor allowed per unit is 0.6 hours. Actual cost per labor hour is $7.5 and actual labour hour per unit is 0.7 hours. What is the standard labor cost per output unit?

A) $4.5

B) $4.8

C) $5.6

D) $5.25

 

9) A standard price is the minimum price a company will have to pay for a unit of input.

 

10) To prepare budgets based on actual data from past periods is preferred since past inefficiencies are EXCLUDED.

 

 

 

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