Management Accounting - Study Mode
[#171] If an actual result is $50000 and static budget variance is $25000, then static budget amount will be
Correct Answer
(B) $25,000
Explanation
Solution: Static budget amount = Actual result - Static budget variance = $50000 - $25000 = $25,000.
[#172] If actual price input is $500, budgeted price of input is $300 and actual quantity of input is 50 units, then price variance would be
Correct Answer
(D) $10,000
Explanation
Solution: Price variance = (actual price input - budgeted price of input) × Actual quantity of input = ($500 - $300) × 50 = $10,000.
[#173] If required rate of return is 13%, operating income is $375000 and total investment is $2650000, then residual income would be
Correct Answer
(A) $30,500
[#174] If working capital is $265000 and current liabilities are $378000, then current assets can be
Correct Answer
(B) $643,000
Explanation
Solution: Current assets = Working capital + Current liabilities = $265000 + $378000 = $643,000
[#175] If current assets are $856000 and working capital is $654500, then current liabilities will be
Correct Answer
(C) $201,500
Explanation
Solution: Current liabilities = Working capital - Current assets = $856000 - $654500 = $201,500.