| 1. | The difference between actual result and corresponding amount of flexible budget, on the basis of actual level of output is classified as |
| a. | sales mix variance |
| b. | sales volume variance |
| c. | flexible budget variance |
| d. | static budget variance |
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Answer: (c).flexible budget variance
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| 2. | In corporate costs, the costs incur for employee recruitment, development and training are classified as |
| a. | discretionary costs |
| b. | human resource management costs |
| c. | corporate administration costs |
| d. | treasury costs |
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Answer: (b).human resource management costs
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| 3. | In customer cost hierarchy, the cost of activities related to specific channel of distribution is classified as |
| a. | discretionary channel costs |
| b. | corporate-sustaining costs |
| c. | distribution-channel costs |
| d. | engineered resource costs |
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Answer: (c).distribution-channel costs
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| 4. | If the static budget amount is $6200 and the flexible budget amount is $4500, then the sales volume variance will be |
| a. | $6,200 |
| b. | $1,700 |
| c. | $17,000 |
| d. | $4,500 |
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Answer: (b).$1,700
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| 5. | The difference between corresponding static budget and flexible budget amount is called |
| a. | sales volume variance |
| b. | sales mix variance |
| c. | sales quantity variance |
| d. | market share variance |
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Answer: (a).sales volume variance
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