What is the variation in the use of materials at actual price and standard materials at standard price? Select one: Material quantity variance Material mix variance Material yield variance Material price variance
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
What is the variation in the use of materials at actual price and standard materials at standard price?
Select one:
- Material quantity variance
- Material mix variance
- Material yield variance
- Material price variance
In determining the standard factory overhead rate, which level of capacity is used?
Select one:
- Maximum capacity
- Expected actual capacity
- Practical capacity
- Normal capacity
One way of analyzing the fixed factory overhead variance is breaking it down into
Select one:
- Efficiency and capacity variances
- Spending and volume variance
- Efficiency and volume variance
- Spending and
budget variance
Setting standards
Select one:
- Should be done to make them as tight as possible
- Is largely a matter of calculating rates and quantities
- Has important behavioral implications
- Is done only for manufacturing activities
A major drawback to setting standards based on historical results is that such standards
Select one:
- Are usually not well received by workers
- Are harder to compute than are engineered standards
- Are usually too hard to meet because of inflation
- Can perpetuate inefficiencies
Prior department costs when using
Select one:
- Conversion costs that are added continuously throughout the process
- Started cost
- Materials added at the beginning inventory
- Costs in the beginning inventory
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