Page 249 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers

Notes 2. Variance is/are
(a) Cost variance (b) Revenue variance
(c) Expense variance (d) Both (a) & (b)
3. Cost variance is classified into

(a) Material variance (b) Labour variance
(c) Expense variance (d) (a), (b) & (c)
4. Variance analysis is for
(a) Cost planning

(b) Cost control
(c) Identification of variance and control deviations
(d) None of the above
5. 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
6. 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
7. Sales value variance is mainly due to

(a) Price variance (b) Quantity variance
(c) Mix variance (d) (a) (b) & (c)
8. Variance is tool of standard costing in determining the deviations of the enterprise from
the early
(a) Estimates (b) Budgets
(c) Costs (d) Prices
9. 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

10. The selling price variance is a measure of the effect on expected
(a) Price (b) Profit
(c) Labour (d) None of these

244 LOVELY PROFESSIONAL UNIVERSITY