Costing - Study Mode
[#136] Chances of cost to be considered as variable are more, if the
Correct Answer
(A) time horizons are long
Explanation
Solution: Chances of cost to be considered as variable are more, if the time horizons are long. Time horizon is the length of time over which an investment is made or held before it is liquidated.
[#137] If actual result is $25000 and flexible budget amount is $11000, then flexible budget amount is
Correct Answer
(D) $14,000
Explanation
Solution: Flexible budget = Actual result - Flexible budget amount = $25000 - $11000 = $14,000
[#138] Flexible budget variance for revenues of company is classified as
Correct Answer
(A) selling price variance
Explanation
Solution: Flexible budget variance for revenues of company is classified as selling price variance. Sales price variance measures the change in a company's total budgeted revenue to the actual revenue earned on a product.
[#139] If actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be
Correct Answer
(A) $87,500
Explanation
Solution: Selling price variance = Actual result × Actual units sold = $250 × 350 = $87,500
[#140] Function used to measure decline in labour hours per unit as units of production increases is called
Correct Answer
(B) learning curve
Explanation
Solution: Function used to measure decline in labour hours per unit as units of production increases is called learning curve. A learning curve is a concept that graphically depicts the relationship between the cost and output over a defined period of time, normally to represent the repetitive task of an employee or worker.