Chapter Questions
State whether the following statements are true or falseStandards are fixed for each industry by trade unions.
Choose the correct answerStandard cost is a(a) Predetermined cost(b) Variable cost(c) Fixed cost(d) Profit
State whether the following statements are true or false Standards are arrived at on the basis of past performance.
Choose the correct answerIdle time variance $=$ idle time $\times$(a) Standard rate(b) Actual rate(c) Predetermined rate(d) Loss
State whether the following statements are true or falseStandards for material labour and overheads are interconnected.
Choose the correct answer Standard costing is more widely applied in(a) Process industries(b) Engineering industries(c) Both (a) and (b)(d) None of the above
State whether the following statements are true or falseVariance means the difference between budget and standard costs.
Choose the correct answerThe technique of standard costing may not be applicable in the case of(a) Large concerns(b) Small concerns(c) Transport(d) Education
State whether the following statements are true or falseStandards do not allow any wastage.
Choose the correct answer LCV is the difference between standard cost of labour and(a) Variable cost(b) Fixed cost(c) Actual cost of labour(d) Marginal cost of labour
State whether the following statements are true or false Yield variance shows the efficiency of labour.
Choose the correct answerStandard costing was developed because of the limitation of(a) Job costing(b) Marginal costing(c) Labour costing(d) Historical costing
State whether the following statements are true or falseStandard cost is a historical cost.
Choose the correct answerManagement by exception is exercising control over(a) Favourable items(b) Unfavourable items(c) Standard times(d) Standard profit
State whether the following statements are true or falseStandard costing is widely applied in process industries.
Choose the correct answerStandard cost of labour - actual cost of labour $=$(a) Total cost variance(b) Total labour cost(c) Total material cost(d) Idle time variance
State whether the following statements are true or falseThree types of standards are current, basic and normal.
Choose the correct answerThe deviation of actual cost or profit or sales from standard cost is known as(a) Labour variance(b) Variance(c) Material variance(d) Cost variance
State whether the following statements are true or falseA set of standards provides yardsticks against which actual costs are compared.
Choose the correct answer Material usage variance $=$ material mix variance +(a) Cost variance(b) Labour variance(c) MYV(d) Fixed cost