Management Accounting - Study Mode
[#286] If an actual result is $5500 and corresponding amount of flexible budget on basis of actual level of output is $3500, then flexible budget variance will be
Correct Answer
(D) $2,000
Explanation
Solution: Flexible budget variance = Actual result - Flexible budget = $5500 - $3500 = $2,000.
[#287] If flexible budget amount is $7500 and sales volume variance is $6500, then static budget amount would be
Correct Answer
(C) $1,000
Explanation
Solution: Static budget amount = Flexible budget amount - Sales volume variance = $7500 - $6500 = $1,000.
[#288] For increasing sales, decrease in selling price below selling price list is known as
Correct Answer
(D) price discount
Explanation
Solution: For increasing sales, decrease in selling price below selling price list is known as price discount. Typically, a store will discount an item by a percent of the original price. The rate of discount is usually given as a percent, but may also be given as a fraction.
[#289] Customer sustaining costs, customer batch-level costs and customer output-unit level costs are classified as
Correct Answer
(A) customer level indirect costs
Explanation
Solution: Customer sustaining costs, customer batch-level costs and customer output-unit level costs are classified as customer level indirect costs. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production. Some indirect costs may be overhead. But some overhead costs can be directly attributed to a project and are direct costs.
[#290] If budgeted contribution margin for budgeted and actual sales mix are $35000 and $27000, then sales mix variance will be
Correct Answer
(A) $8,000
Explanation
Solution: Sales mix variance = Budgeted sales - Actual sales = $35000 - $27000 = $8,000.