Costing - Study Mode

[#461] Number of units are 5000 and per unit price is $60, then flexible budget variable would be
Correct Answer

(B) $3,000,000

Explanation

Solution: Flexible budget variable = Number of units × per unit price = 5000 × $60 = $3,000,000

[#462] If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be
Correct Answer

(D) $37,000

Explanation

Solution: Flexible budget = Flexible budget amount - Actual result = $82000 - $45000 = $37,000

[#463] Difference between flexible budget amount and corresponding static budget amount is classified as
Correct Answer

(D) sales volume variance

Explanation

Solution: Difference between flexible budget amount and corresponding static budget amount is classified as sales volume variance. The sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit.

[#464] If an actual selling price is $400, an actual result is $250 and an actual units sold are 500, then selling price variance will be
Correct Answer

(C) $75,000

Explanation

Solution: Selling price variance is calculated using the formula: Selling Price Variance = (Actual Selling Price - Actual Result) x Actual Units Sold Given: Actual Selling Price = $400 Actual Result = $250 Actual Units Sold = 500 Substituting the values: Selling Price Variance = ($400 - $250) x 500 Selling Price Variance = $150 x 500 Selling Price Variance = $75,000 Therefore, the selling price variance will be $75,000 .

[#465] Match the following. List-I List-II a. Statement of changes in working capital 1. Cash flow statement b. Deferred tax 2. Fixed assets c. Three activities 3. Fund flow statement d. Impairment loss 4. Balance sheet
Correct Answer

(C) a-3, b-4, c-1, d-2