1.
Question 1
Which of the following best describes a standard?
Broader than a master budget
Reported on a per-unit basis
Determined at the end of an accounting period
Reported only in financial terms
2.
Question 2
Variance analysis provides a comparison of actual and expected outcomes.
True
False
3.
Question 3
A static cost budget presents how much a company should have spent given the planned level of production.
True
False
4.
Question 4
Which of the following is true regarding a favorable variance?
It is more important than unfavorable variances.
It reflects a desirable scenario.
All else equal, actual net income is greater than budgeted net income.
All else equal, actual net income is less than budgeted net income.
5.
Question 5
Which of the following is true regarding cost variances?
Fixed overhead costs exhibit efficiency variances.
All costs can exhibit spending, efficiency, and activity variances.
Variable costs can exhibit spending, efficiency, and activity variances.
Materials costs have spending variances; labor costs have efficiency variances; overhead costs have activity variances.
6.
Question 6
Fixed cost variances include efficiency variances.
True
False
7.
Question 7
Which of the following is true about revenue variances?
Can be calculated in multi-product scenarios
Can only be calculated in single product scenarios
Only are calculated using budgeted sales price
Are more important than cost variances
8.
Question 8
Which of the following is true about revenue variances?
They include sales price variances and sales mix variances.
They include a sales efficiency variance.
They include production volume variances.
They are classified as favorable or unfavorable