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 14 of 20

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Q131.
The variable overhead flexible budget variance is added to flexible budget amount to calculate

a.

actual cost incurred

b.

fixed cost incurred

c.

variable cost incurred

d.

manufacturing cost incurred

Discuss
Answer: (a).actual cost incurred
Q132.
If the fixed setup cost is $21000 and the variable setup cost is $11000, then the setup cost would be

a.

$12,000

b.

$15,000

c.

$10,000

d.

$32,000

Discuss
Answer: (d).$32,000
Q133.
If the budgeted total cost in fixed overhead is $385000 and the budgeted total quantity is $6730, then budgeted fixed overhead cost per unit will be

a.

$57.21 per unit

b.

$67.21 per unit

c.

$77.21 per unit

d.

$87.21 per unit

Discuss
Answer: (a).$57.21 per unit
Q134.
In flexible budget analysis, the variable overhead flexible budget variance is equal to

a.

fixed cost-variable budget amount

b.

actual cost-flexible budget amount

c.

variable cost-allocated amount

d.

actual cost-variable amount

Discuss
Answer: (b).actual cost-flexible budget amount
Q135.
If the flexible budget amount is $26000 and fixed overhead flexible budget variance is $12500, then actual incurred cost would be

a.

$38,500

b.

$48,500

c.

$58,500

d.

$13,500

Discuss
Answer: (a).$38,500
Q136.
The second step in developing operating budget is to

a.

identify variable overhead cost

b.

compute the per unit rate

c.

choose the budgeting period

d.

select allocation bases

Discuss
Answer: (d).select allocation bases
Q137.
The flexible budget amount is added in to fixed overhead flexible budget variance to calculate

a.

incurred manufacturing

b.

incurred production cost

c.

actual incurred cost

d.

incurred labor cost

Discuss
Answer: (c).actual incurred cost
Q138.
The fixed overhead allocated for actual output unit is subtracted from budgeted fixed overhead to calculate

a.

budget variance

b.

production volume variance

c.

price volume variance

d.

cost volume variance

Discuss
Answer: (b).production volume variance
Q139.
Usage of more resources to develop fundamental standards is classified as

a.

potential budget response

b.

potential management response

c.

potential price response

d.

potential cost response

Discuss
Answer: (b).potential management response
Q140.
If the cost of indirect support labor is $5000, equipment maintenance setup cost is $7000 and machinery leasing cost is $4000 then variable fixed cost will be

a.

$16,000

b.

$12,000

c.

$18,000

d.

$21,000

Discuss
Answer: (b).$12,000
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