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 11 of 20

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Q101.
If the variable overhead flexible budget variance is $26000 and the flexible budget amount is $15000, then the actual incurred costs will be

a.

$21,000

b.

$11,000

c.

$31,000

d.

$41,000

Discuss
Answer: (d).$41,000
Q102.
The higher plant leasing, higher administrative costs and higher depreciation on equipment and plants are all the factors of

a.

favorable spending variance

b.

unfavorable spending variance

c.

favorable price variance

d.

unfavorable price variance

Discuss
Answer: (b).unfavorable spending variance
Q103.
If the fixed overhead allocated for actual output unit is $7500 and budgeted fixed overhead is $21000, then the production volume variance will be

a.

$16,500

b.

$15,500

c.

$14,500

d.

$13,500

Discuss
Answer: (d).$13,500
Q104.
A measure which evaluates overall tradeoff and effect among non-financial performance measure is

a.

non-financial measures

b.

financial measures

c.

effective measure

d.

lump sum measure

Discuss
Answer: (b).financial measures
Q105.
If an actual incurred cost is $387500 and the flexible budget amount is $168750, then fixed overhead variance of flexible budget would be

a.

$518,750

b.

$418,750

c.

$218,750

d.

$318,750

Discuss
Answer: (c).$218,750
Q106.
The costing technique, which classify all the activities in costing hierarchy is classified as

a.

activity based costing

b.

non-financial costing

c.

profit costing

d.

lump sum costing

Discuss
Answer: (a).activity based costing
Q107.
If the budgeted quantity of output unit is 450 and budgeted overhead fixed cost is $250, then budgeted fixed overhead output unit will be

a.

$142,500

b.

$112,500

c.

$122,500

d.

$132,500

Discuss
Answer: (b).$112,500
Q108.
An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as

a.

variable batch costs

b.

fixed batch costs

c.

variable setup costs

d.

fixed setup costs

Discuss
Answer: (c).variable setup costs
Q109.
If the salaries of engineers are $3000, the salaries of supervisors are $4000 and the equipment leasing cost is $3000, then fixed setup costs will be

a.

$10,000

b.

$1,000

c.

$7,000

d.

$4,000

Discuss
Answer: (a).$10,000
Q110.
In overhead cost variance analysis, the variable overhead does not include

a.

favorable volume variance

b.

profit volume variance

c.

cost volume variance

d.

production volume variance

Discuss
Answer: (d).production volume variance
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