Costing - Practice Test | ExamPrepSheets

[#616] The basic difference between a static budget and flexible budget is that

(A) a flexible budget considers only variable costs but a static budget considers all costs

(B) a flexible budgets allows management latitude in meeting goals, whereas static budget is based on fixed standards

(C) a flexible budget is applicable for a single department only but a static budget for entire production facility

(D) a flexible budget can be prepared for any production level within a relevant range but a static budget is based on one specific level of production

Correct Answer

(D) a flexible budget can be prepared for any production level within a relevant range but a static budget is based on one specific level of production

[#617] Liquid assets is determined by

(A) Current assets - Stock - Prepaid expenses

(B) Current assets + Stock + Prepaid expenses

(C) Current assets + Prepaid expenses

(D) None of the above

Correct Answer

(A) Current assets - Stock - Prepaid expenses

[#618] Which of the following are the methods of determining cost behaviour? I. High and low point method II. Least square regression method III. Accounting or analytical approach IV. Non-parametric method Choose the correct answer from the options given below

(A) I, II and IV

(B) I, III, and IV

(C) II, III and IV

(D) I, II and III

Correct Answer

(D) I, II and III

[#619] Which of the following would have been equal to factory overhead?

(A) Factory cost - Prime cost

(B) Factory cost + Prime cost

(C) Prime cost + Direct cost

(D) Factory cost + Direct expenses

Correct Answer

(A) Factory cost - Prime cost

[#620] Material usage variance = Material mix variance + . . . . . . . .

(A) Material yield variance

(B) Material cost variance

(C) Material price variance

(D) Material quantity variance

Correct Answer

(A) Material yield variance

Costing - Study Mode

[#616] The basic difference between a static budget and flexible budget is that

Correct Answer

[#617] Liquid assets is determined by

Correct Answer

[#618] Which of the following are the methods of determining cost behaviour? I. High and low point method II. Least square regression method III. Accounting or analytical approach IV. Non-parametric method Choose the correct answer from the options given below

Correct Answer

[#619] Which of the following would have been equal to factory overhead?

Correct Answer

[#620] Material usage variance = Material mix variance + . . . . . . . .

Correct Answer