Price and Efficiency Variance Questions and Answers PDF Download eBook

MCQ: The actual price of material is less than budgeted price, this means that

1. price variance is favorable
2. price variance is unfavorable
3. cost variance is favorable
4. cost variance is unfavorable

MCQ: The costs, which consist of interdepartmental cost allocations plus cost of support department are classified as

1. complete reciprocal costs
2. artificial costs
3. operating costs
4. flexible operating costs

MCQ: The type of plan of a company, which quantities the expectations of cash flows, income and financial position is known as

1. budget
2. batching
3. complexity
4. process

MCQ: If the budgeted quantity of output unit is 450 and budgeted overhead fixed cost is $250, then budgeted fixed overhead output unit will be

1. $142,500
2. $112,500
3. $122,500
4. $132,500

MCQ: The quantitative expression of decided plan and coordination, for plan implementation is known as

1. cost format
2. decided plan
3. coordination plan
4. budget