1. LO 8.1Why does a company use a standard costing system? 2. LO 8.1This standard is set at a level that may be reached with reasonable effort.
3. LO 8.1This standard is set at a level that could be achieved if everything ran perfectly.
4. LO 8.1This variance is the difference involving spending more or using more than the standard amount.
5. LO 8.1This variance is the difference involving spending less, or using less than the standard amount.
6. LO 8.2What are some possible reasons for a material price variance?
7. LO 8.2When is the material price variance unfavorable?
8. LO 8.2When is the material price variance favorable?
9. LO 8.2What are some reasons for a material quantity variance?
10. LO 8.2When is the material quantity variance favorable?
11. LO 8.2When is the material quantity unfavorable?
12. LO 8.3What are some possible reasons for a labor rate variance?
13. LO 8.3When is the labor rate variance unfavorable?
14. LO 8.3When is the labor rate variance favorable?
15. LO 8.3What are some possible reasons for a direct labor time variance?
16. LO 8.3When is the direct labor time variance favorable?
17. LO 8.3When is the direct labor time variance unfavorable?
18. LO 8.4A flexible budget ________.
19. LO 8.4The variable overhead rate variance is caused by the sum between which of the following?
20. LO 8.4The variable overhead efficiency variance is caused by the difference between which of the following?
21. LO 8.4The fixed factory overhead variance is caused by the difference between which of the following?
22. LO 8.5Which of the following is a possible cause of an unfavorable material price variance?
23. LO 8.5Which of the following is a possible cause of an unfavorable material quantity variance?
24. LO 8.5Which of the following is a possible cause of an unfavorable labor efficiency variance?
25. LO 8.5Which of the following is a possible cause of an unfavorable labor rate variance?
Which of the following is the difference between actual and standard cost of material?The difference between the actual cost and the standard cost is known as variance. The variance can either be favorable or unfavorable.
What is standard cost What is the difference between actual cost and standard cost?Standard cost refers to the estimated costs of a product about the material, labour, and other overhead costs. The actual cost is the realized cost and is not based on the estimates of the same. Standard Cost cannot be included in the financial statements of a company.
What will be the difference between actual cost and standard cost Mcq?The difference between actual cost and standard cost is known as Variance.
What can cause a variance between standard and actual costs?Also known as negative or debit variance. It is the difference between the standard cost of direct materials specified for the output achieved and the actual cost of direct materials used. This difference in material cost maybe partly due to difference in usage of raw material and partly due to difference in prices.
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