50+ Standard Costing MCQ | Cost Accounting MCQs (Free Resource)
11. A total cost variance is best defined as the difference between
(a) total standard cost for the last year and total standard cost in the current year
(b) total standard cost for the last year and total actual cost in the current year
(c) the standard cost value of output budgeted in a period and the total actual cost incurred
(d) the standard cost value of output achieved in a period and the total actual cost incurred
12. If standard cost is lower than the actual cost, the difference is known as
(a) Favourable
(b) Adverse
(c) Positive
(d) Negative
13. A favourable variance occurs when
(a) actual costs are less than marginal costs
(b) standard costs are less than actual costs
(c) actual costs are less than the selling price
(d) actual costs are less than standard costs
14. The “standard quantity allowed” is computed by multiplying the :
(a) actual input in units by the standard output allowed
(b) actual output in units by the standard input allowed
(c) actual output in units by the standard output allowed
(d) standard output in units by the standard input allowed
15. The difference between the actual price and the standard price, multiplied by the actual quantity of materials purchased is the
(a) materials cost variance
(b) materials usage variance
(c) materials price variance
(d) materials efficiency variance
16. The difference between the actual quantity and the standard quantity, multiplied by the standard price is the
(a) materials efficiency variance
(b) materials volume variance
(c) materials price variance
(d) materials usage variance
17. Which of the following is correct with regard to using the standard quantity to compute materials variances?
Standard quantity is used –
(a) Materials Price Variance: Yes; Materials Usage Variance: No
(b) Materials Price Variance: Yes; Materials Usage Variance: Yes
(c) Materials Price Variance: No; Materials Usage Variance: No
(d) Materials Price Variance: No; Materials Usage Variance: Yes
18. Which of the following is correct with regard to using the standard unit price to compute materials variances?
Standard unit price used –
(a) Materials Price Variance: Yes; Materials Usage Variance: No
(b) Materials Price Variance: Yes; Materials Usage Variance: Yes
(c) Materials Price Variance: No; Materials Usage Variance: No
(d) Materials Price Variance: No; Materials Usage Variance: Yes
19. The term “standard hours allowed” measures
(a) budgeted output at actual hours
(b) budgeted output at standard hours
(c) actual output at standard hours
(d) actual output at actual hours
20. The labour rate variance is computed as :
(a) (Actual labour hours worked – Standard labour hours allowed) x Actual labour rate
(b) (Actual labour hours worked – Standard labour hours allowed) x Standard labour rate
(c) (Actual labour rate – Standard labour rate) x Standard hours allowed
(d) (Actual labour rate – Standard labour rate) x Actual hours worked
Answers: 11)the standard cost value of output achieved in a period and the total actual cost incurred 12)Adverse 13)actual costs are less than standard costs 14)actual output in units by the standard input allowed 15)materials price variance 16)materials usage variance 17)Materials Price Variance: No; Materials Usage Variance: Yes 18)Materials Price Variance: Yes; Materials Usage Variance: Yes 19)actual output at standard hours 20)(Actual labour rate – Standard labour rate) x Actual hours worked |
Q. NO. 5 3RD ANSWER HOGA