Management Accounting - Study Mode
[#346] An energy, machine maintenance, indirect materials and engineering support are considered as
Correct Answer
(A) variable overhead cost
Explanation
Solution: An energy, machine maintenance, indirect materials and engineering support are considered as variable overhead cost. Variable overhead costs tend to be higher when a business is engaged in a greater number of transactions, a higher level of production, or other situations in which more business events take place. The opposite of fixed overhead costs such as payroll and insurance, which generally remain static.
[#347] Budget, which highlights difference between actual quantity and budgeted quantity is termed as
Correct Answer
(B) flexible budget variance
Explanation
Solution: Budget, which highlights difference between actual quantity and budgeted quantity is termed as flexible budget variance. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results.
[#348] A company must eliminate all those activities that do not add value to all products or services in planning of
Correct Answer
(A) variable overhead cost
Explanation
Solution: A company must eliminate all those activities that do not add value to all products or services in planning of variable overhead cost. Variable overhead is a term used to describe the fluctuating manufacturing costs associated with operating businesses.
[#349] If flexible budget amount is $40000 and variable overhead flexible budget variance is $25000, then actual costs incur will be
Correct Answer
(C) $65,000
Explanation
Solution: Actual costs = Flexible budget amount + Variable overhead flexible budget variance = $40000 + $25000 = $65,000.
[#350] Flexible budget amount is added in to variable overhead flexible budget variance to calculate
Correct Answer
(D) actual costs incurred
Explanation
Solution: Flexible budget amount is added in to variable overhead flexible budget variance to calculate actual costs incurred. An actual amount paid or incurred, as opposed to estimated cost or standard cost. In contracting, actual costs amount includes direct labor, direct material, and other direct charges.