Page 140 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Unit 7: Variance Analysis

9. Variance analysis is for Notes
(a) Cost planning

(b) Cost control
(c) Identification of variance and control deviations

(d) None of the above
10. When the revised standard mix of the materials will not vary with the standard mix of the
materials ?

(a) Both standard and actual mix of materials are different
(b) Standard mix of materials are greater than the actual mix of materials
(c) Both are equivalent to each other
(d) None of the above
11. Why labour efficiency variance is denominated in terms of standard rate?

(a) Actual rate is not a measure
(b) Standard rate is free from the demand and supply of labour force
(c) Actual measure is a measure of demand and supply of labour force

(d) None of the above
12. Sales value variance is mainly due to
(a) Price variance
(b) Quantity variance
(c) Mix variance
(d) (a) (b) & (c)

13. Variance is tool of standard costing in determining the deviations of the enterprise from the
early
(a) Estimates
(b) Budgets
(c) Costs

(d) Prices
14. The direct labour total variance is the difference between what the output should have cost
and what it did cost, in terms of
(a) Cash
(b) Labour

(c) Material
(d) None of these
15. The selling price variance is a measure of the effect on expected
(a) Price
(b) Profi t
(c) Labour
(d) None of these

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