Inter PN-12 Management Accounting Quiz 11

Which cost remains constant per unit in flexible budgets?

Benchmarking in budgetary control refers to

Which of the following is not a functional budget?

A performance budget emphasises

Rolling budgets are characterized by

Which type of budgeting starts from zero each period rather than adjusting prior budgets?

A flexible budget is preferable to a fixed budget because it

Which of the following budgets is a “summary budget” of all departmental budgets?

Sales forecast is ₹5,00,000. Desired closing stock is 20% of next month’s sales, and opening stock is ₹40,000. If next month's sales are ₹6,00,000, what is the required production (in ₹)?

Sales forecast for Jan to March: ₹60,000, ₹80,000, ₹1,00,000. 30% sales are cash; 70% are credit, collected in next month. What are total receipts in March?

Budgeted production is 1,200 units. Opening stock = 100, Closing stock = 300. What is the sales budget?

In a flexible budget, fixed costs are ₹30,000. At 5,000 units, total variable cost is ₹50,000. What is total cost at 6,000 units?

A company budgets sales at 10,000 units at ₹20 per unit. Variable cost is ₹12/unit and fixed costs are ₹40,000. What is the budgeted profit?

What is the effect of an adverse material usage variance?

How often are standards usually revised?

What type of standard assumes no inefficiencies and perfect conditions?

Overhead variances are classified into:

Which of the following is a favorable variance?

Labour efficiency variance indicates:

Which variance arises due to the difference between actual price and standard price of materials?

Standard variable overhead rate is ₹4 per hour. Standard hours allowed are 500 hours. Actual hours worked are 550 hours and actual variable overhead is ₹2300. Calculate variable overhead efficiency variance.

A company’s fixed overhead absorption rate is ₹10 per hour. Standard hours allowed for actual production are 500 hours. Actual fixed overhead incurred was ₹5200. Calculate fixed overhead spending variance.

A company produces 500 units. The standard material per unit is 2 kg at ₹4 per kg. Actual material used is 1100 kg at ₹3.8 per kg. Calculate material usage variance.

Standard cost of variable overhead is ₹5 per hour. Standard hours allowed for actual production are 1000 hours, actual hours worked are 1100 hours, and actual overhead is ₹5600. Calculate variable overhead spending variance.

A product’s standard cost includes 3 hours of labor at ₹40 per hour. Actual labor was 4 hours at ₹38 per hour. What is the labor rate variance?