Flexible Budget and Management Control MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Flexible Budget and Management Control, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Flexible Budget and Management Control MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Flexible Budget and Management Control mcq questions that explore various aspects of Flexible Budget and Management Control problems. Each MCQ is crafted to challenge your understanding of Flexible Budget and Management Control principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Flexible Budget and Management Control MCQs are your pathway to success in mastering this essential Cost Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Flexible Budget and Management Control. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Flexible Budget and Management Control knowledge to the test? Let's get started with our carefully curated MCQs!

Flexible Budget and Management Control MCQs | Page 10 of 20

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Q91.
An indirect support labor costs and costs of indirect energy are considered as

a.

variable batch costs

b.

fixed batch costs

c.

variable setup costs

d.

fixed setup costs

Discuss
Answer: (c).variable setup costs
Q92.
An actual quantity of cost allocation base is $56000, budgeted quantity of cost allocation base is $17000, then the variable overhead efficiency variance is

a.

$39,000

b.

$49,000

c.

$59,000

d.

$73,000

Discuss
Answer: (a).$39,000
Q93.
The step of installing production scheduling procedure, to improve plant operations is considered as

a.

potential cost response

b.

potential budget response

c.

potential management response

d.

potential price response

Discuss
Answer: (c).potential management response
Q94.
The process of ensuring preventive measure to be done in all machines is classified as

a.

potential price response

b.

potential cost response

c.

potential budget response

d.

potential management response

Discuss
Answer: (d).potential management response
Q95.
If an actual cost incurred is $627500, the flexible budget amount is $358750, then fixed overhead variance of flexible-budget will be

a.

$218,750

b.

$238,750

c.

$258,750

d.

$268,750

Discuss
Answer: (d).$268,750
Q96.
If an actual variable quantity is 50, the actual and budgeted overhead cost of allocation is $7550 and $4500 respectively, then the variable overhead spending variance could be

a.

$182,500

b.

$152,500

c.

$162,500

d.

$172,500

Discuss
Answer: (b).$152,500
Q97.
An unfavorable volume-production variance is used to measure the amount of

a.

fixed setup cost

b.

total setup cost

c.

variable setup cost

d.

total overhead cost

Discuss
Answer: (a).fixed setup cost
Q98.
The less skilled workers for operating machines then expected are classified as

a.

cause for exceeding budget

b.

cause of less employment

c.

fixed cost variation

d.

variable cost variation

Discuss
Answer: (a).cause for exceeding budget
Q99.
A cost, consists of some fixed and some variable cost with respect to machine setup hours is termed as

a.

setup cost

b.

batch cost

c.

facility cost

d.

lump sum cost

Discuss
Answer: (a).setup cost
Q100.
The lower plant leasing, lower administrative costs, lower depreciation on equipment and plant are all the factors of

a.

favorable price variance

b.

unfavorable price variance

c.

favorable spending variance

d.

unfavorable spending variance

Discuss
Answer: (c).favorable spending variance
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