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Cost Acct Exam Questions And Answers
100% Verified.
Select the possible sources of information a company might use to compute the budgeted amount
in variance analysis.
A) detailed engineering studies
B) past amounts
C) Data from other companies
D) All of the above - Answers✔D) all of the above
What is the key difference between a static budget and a flexible budget?
A) a static budget is based on the level of output at the beginning of the period; a flexible budget
is based on the actual unit prices
B) a flexible budget is based on the level of output at the beginning of the period; a static budget
is based on the actual output level in the budget period
C) a static budget is based on the level of output at the beginning of the period; a flexible budget
is based on the actual output level in the budget period
D) None of the Above - Answers✔C) a static budget is based on the level of output at the
beginning of the period; a flexible budget is based on the actual output level in the budget period
Select the reasons for using standard costs:
A) pricing decisions
B) budgetary planning and control
C) cost management
D) all of the above - Answers✔D) all of the above
How can variances be used to analyze costs in individual activity areas?
1
, ©FYNDLAY.
A) variances can be computed at any activity level, as well as the company level
B) Variances can only be computed at the company level, not at an activity level
C) Variances can be computed at the output level only
D) Variances can be computed at the output level or batch level, but not at the product-sustaining
level or company level - Answers✔A) variances can be computed at any activity level, as well as
the company level
"Benchmarking against other companies enables a company to identify the lowest-cost producer.
This amount must become the performance measure for next year."
True/False - Answers✔False
Contrafic Corporation used the following Data to evaluate its current operating system. The
company sells items for $26 each and used a budgeted selling price of $26 per unit.
Actual
Units Sold - 180000
Variab. Costs - 1082000
Fixed Costs - 801000
Budgeted
Units Sold - 190000
Variab. Costs - 1295000
Fixed Costs - 780000
What is the static - budget variance of revenues?
A) 260000 favorable
B) 10000 favorable
C) 10000 unfavorable
2
Cost Acct Exam Questions And Answers
100% Verified.
Select the possible sources of information a company might use to compute the budgeted amount
in variance analysis.
A) detailed engineering studies
B) past amounts
C) Data from other companies
D) All of the above - Answers✔D) all of the above
What is the key difference between a static budget and a flexible budget?
A) a static budget is based on the level of output at the beginning of the period; a flexible budget
is based on the actual unit prices
B) a flexible budget is based on the level of output at the beginning of the period; a static budget
is based on the actual output level in the budget period
C) a static budget is based on the level of output at the beginning of the period; a flexible budget
is based on the actual output level in the budget period
D) None of the Above - Answers✔C) a static budget is based on the level of output at the
beginning of the period; a flexible budget is based on the actual output level in the budget period
Select the reasons for using standard costs:
A) pricing decisions
B) budgetary planning and control
C) cost management
D) all of the above - Answers✔D) all of the above
How can variances be used to analyze costs in individual activity areas?
1
, ©FYNDLAY.
A) variances can be computed at any activity level, as well as the company level
B) Variances can only be computed at the company level, not at an activity level
C) Variances can be computed at the output level only
D) Variances can be computed at the output level or batch level, but not at the product-sustaining
level or company level - Answers✔A) variances can be computed at any activity level, as well as
the company level
"Benchmarking against other companies enables a company to identify the lowest-cost producer.
This amount must become the performance measure for next year."
True/False - Answers✔False
Contrafic Corporation used the following Data to evaluate its current operating system. The
company sells items for $26 each and used a budgeted selling price of $26 per unit.
Actual
Units Sold - 180000
Variab. Costs - 1082000
Fixed Costs - 801000
Budgeted
Units Sold - 190000
Variab. Costs - 1295000
Fixed Costs - 780000
What is the static - budget variance of revenues?
A) 260000 favorable
B) 10000 favorable
C) 10000 unfavorable
2
