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 13 of 20

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Q121.
The third step in developing operating budget is to

a.

choose the budgeting period

b.

select allocation bases

c.

identify variable overhead cost

d.

compute the per unit rate

Discuss
Answer: (c).identify variable overhead cost
Q122.
In manufacturing settings, the budgeted fixed overhead rate is classified as

a.

production numerator level

b.

production denominator level

c.

production cost level

d.

production fixed level

Discuss
Answer: (b).production denominator level
Q123.
The lump sum cost that remains unchanged in total despite of changes in total volume is classified as

a.

unchanged price

b.

unchanged cost

c.

fixed overhead cost

d.

variable overhead cost

Discuss
Answer: (c).fixed overhead cost
Q124.
If the flexible budget amount is $21500 and fixed overhead flexible budget variance is $10000, then actual incurred cost will be

a.

$61,500

b.

$31,500

c.

$41,500

d.

$51,500

Discuss
Answer: (b).$31,500
Q125.
The difference between actual quantity and budgeted quantity of cost allocation base is classified as

a.

fixed overhead efficiency variance

b.

variable overhead efficiency variance

c.

variable overhead manufacturing variance

d.

fixed overhead manufacturing variance

Discuss
Answer: (b).variable overhead efficiency variance
Q126.
An activity based costing hierarchy includes

a.

batch level

b.

output unit level

c.

facility and product sustaining

d.

all of above

Discuss
Answer: (d).all of above
Q127.
If fixed overhead allocated for actual output units is $36000 and the production volume variance is $7000, then budgeted fixed overhead will be

a.

$43,000

b.

$42,000

c.

$29,000

d.

$19,000

Discuss
Answer: (a).$43,000
Q128.
If the total setup cost is $42000 and fixed setup cost is $17000, then the variable fixed cost would be

a.

$59,000

b.

$25,000

c.

$15,000

d.

$39,000

Discuss
Answer: (b).$25,000
Q129.
If the fixed setup cost is $32000 and the variable setup cost is $12000, then the setup cost will be

a.

$20,000

b.

$34,000

c.

$44,000

d.

$35,000

Discuss
Answer: (c).$44,000
Q130.
In production volume variance, an acquiring fixed cost such as equipment and plant lease is known as

a.

lump sum price amount

b.

lump sum fixed cost

c.

lump sum variable cost

d.

lump sum manufacturing cost

Discuss
Answer: (b).lump sum fixed cost
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