E-PolyLearning

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

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

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

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

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
View Answer Report Discuss 50-50!
Answer: (a).sales volume variance

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