Practice Test

Q1) In a factory where standard costing is followed, 9,600 kg. of materials at Rs.10.50/kg were actually consumed resulting in a price variance of Rs.4,800 (A) and usage variance of Rs 4,000 (F). The standard cost of actual production is Rs___________ . Show Answer

Q2) In a factory where standard costing is followed, 9,600 kg. of materials at Rs. 10.50/kg were actually consumed resulting in price variance of Rs. 4,800 (A) and usage variance of Rs. 4,000 (F). The standard cost of actual production is Rs.________ Show Answer

Q3) The budgeted fixed overheads for a budgeted production of 10000 units is Rs, 20,000. For a certain period the actual production was 11,000 units and actual expenditure came to Rs.24,000. Then the volume variance is Rs ______ Show Answer

Q4) The standard variable overhead cost of a product is Rs. 10 ( 5 hours @ Rs2/hr.). In a certain month it took 1800 hours at a cost of Rs.4,200 to manufacture 400 units. The variable overhead expenditure and efficiency variance are ______ and ________ respectively. Show Answer

Q5) In a factory of PEE Ltd. where standard costing is followed , the budgeted fixed overheads for a budgeted production of 4800 units is Rs.24,000. For a certain period actual expenditure incurred was Rs 22,000 resulting in a fixed overhead volume variance of Rs. 3,000 (Adv.) Then actual production for the period was : Show Answer

Q6) In factory of ZB Ltd. operating standard cost system, 2,000 kgs. of a material @ Rs. 12 per kg. were used for a product,resulting in price variance material of Rs. 6,00 (FAV) and usage variance of Rs. 3,000 (Adv.). then standard material cost of actual production was : Show Answer

Q7) A chemical is manufactured by combing two standard items of input A ( standard price Rs. 60/kg) and B(Rs. 45/Kg) in the ratio 60%: 40%. 10% of input is lost during processing. If during a month 1200 kg. of the chemical is produced incurring a total cost of Rs. 69,600, the total material cost variance will be _______ Show Answer

Q8) The budgeted standard hours of a factory is 12,000. The capacity utilization ratio for April 2007 stood at 90% while the efficiency ratio for the month came to 120% . the actual production in standard hours for April, 2007 was _________ Show Answer

Q9) If actual hours worked exceed the standard hours allowed, the variance which will occur is called as Show Answer

Q10) Material usage variance is the sum of ________and ________ Show Answer

Q11) Material cost variance is equal to : Show Answer

Q12) Material Price variance is equal to : Show Answer

Q13) Material usage variance is equal to : Show Answer

Q14) Material cost variance is equal to : Show Answer

Q15) Standard overhead rate (per hour) is equal to : Show Answer

Q16) Labour Cost variance is equal to : Show Answer

Q17) Labour Cost variance also terms as : Show Answer

Q18) Fixed overhead capacity variance is equal to : Show Answer

Q19) The difference between the original Standard and revised Standard is known _____ Show Answer

Q20) ____________ is predetermined calculation of how costs should be under specified working conditions. Show Answer

Q21) Actual costs can be compared with ______ in order to evaluate performance. Show Answer

Q22) Idle time variance is always ________ Show Answer

Q23) AB Ltd. purchased 6,850 kgs. of materials for Rs.21,920. The material price variance was Rs. 1,370 (favorable). The standard price per kg. was : Show Answer

Q24) If period of credit allowed to the customer is 2 months then the credit sales of which month will be considered for cash budget : Show Answer

Q25) Budget is an expression of a business plan in financial terms _____shows the anticipated sources and utilization of cash. Show Answer

Q26) Standard Costing is a ________. Show Answer

Q27) Standard costing is also called as _______. Show Answer

Q28) Adverse variance means when actual cost is ______ than ______. Show Answer

Q29) When standard costing are ________ whole organization gets affected. Show Answer

Q30) Formula for MPV = _______ Show Answer

Q31) Formula for LEV = _______ Show Answer

Q32) Labour variance is caused only due to change in wage rate. Show Answer

Q33) _______ variance is caused due to change in quantity. Show Answer

Q34) MCV is favorable when the _______ is less than the _______. Show Answer

Q35) Poor working condition causes the ________. Show Answer

Q36) Standard cost includes element of cost _______ cost. Show Answer

Q37) Standard costing helps the management to perform managerial function such as ________ Show Answer

Q38) Material Usage Variance = _______ Show Answer

Q39) Labour Rate Variance = ________ Show Answer

Q40) Material Variance is caused due to change in ________ Show Answer

Q41) Only large scale business can afford standard costing system. Show Answer

Q42) Standard costing is a per-determined cost which is calculated from management standard of efficient operation. Show Answer

Q43) Standard costing does not help to control cost. Show Answer

Q44) The main objective of standard costing is to ascertain cost. Show Answer

Q45) Standard cost element includes only material cost. Show Answer

Q46) Adverse variance means when actual cost are more than standard cost. Show Answer

Q47) Standard costing encourages employee to work efficiency Show Answer

Q48) Mat var is caused due to change in price, change in tax policy etc. Show Answer

Q49) Labour cost variance is favorable when standard cost is less than actual cost. Show Answer

Q50) Standard costing helps to eliminate the weaknesses of historical costing. Show Answer

Q51) If standards are in accurate, whole organization gets affected. Show Answer

Q52) With the help of standard costing cost is controlled. Show Answer

Q53) Standard costing does not help management to formulate price in advance. Show Answer

Q54) Standard costing helps to eliminate material wastage's idle time. Show Answer