Management Accounting - Study Mode

[#91] Degree which predetermines target or income achieved, can be grouped under
Correct Answer

(D) effectiveness

Explanation

Solution: Degree which predetermines target or income achieved, can be grouped under effectiveness.

[#92] If budgeted input price is $50, price variance is $30 then an actual price will be
Correct Answer

(C) $80

Explanation

Solution: Actual price = Budgeted input price + Price variance = $50 + $30 = $80.

[#93] Quantity of input which is carefully determined is called
Correct Answer

(C) standard input

Explanation

Solution: Quantity of input which is carefully determined is called standard input. The standard input device, also referred to as stdin, is the device from which input to the system is taken.

[#94] If actual cost is $356000 and flexible budget cost is $255000, then flexible budget variance will be
Correct Answer

(C) $101,000

Explanation

Solution: Flexible budget variance = Actual cost - Flexible budget cost = $356000 - $255000 = $101,000.

[#95] Variance is stated difference between expected performance and the
Correct Answer

(B) actual results

Explanation

Solution: Variance is stated difference between expected performance and the actual results. Variance is used to compare the relative performance of each asset in a portfolio.