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.

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Flexible Budget and Management Control MCQs | Page 15 of 20

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Q141.
If fixed overhead allocated for actual output units is $25000 and the production volume variance is $9000, then budgeted fixed overhead will be

a.

$34,000

b.

$24,000

c.

$16,000

d.

$18,000

Discuss
Answer: (a).$34,000
Q142.
To calculate fixed overhead flexible budget variance, an actual incurred cost is subtracted from

a.

flexible budget amount

b.

constant amount

c.

variable amount

d.

production amount

Discuss
Answer: (a).flexible budget amount
Q143.
The first step in developing cost rate for budgeted variable overhead is to

a.

choose the budgeting period

b.

select allocation bases

c.

identify variable overhead cost

d.

compute the per unit rate

Discuss
Answer: (a).choose the budgeting period
Q144.
In overhead cost variance analysis, the fixed overhead does not include

a.

efficiency variance

b.

unfavorable variance

c.

production volume variance

d.

favorable variance

Discuss
Answer: (a).efficiency variance
Q145.
If an actual variable quantity is 70, the actual and budgeted overhead cost of allocation is $8650 and $3500 respectively, then the variable overhead spending variance will be

a.

$660,500

b.

$560,500

c.

$460,500

d.

$360,500

Discuss
Answer: (d).$360,500
Q146.
The machine budgeted time standards are set too tight, is the possible cause for

a.

priced budget

b.

exceeding budget

c.

fixed budget

d.

variable budget

Discuss
Answer: (b).exceeding budget
Q147.
If the total setup cost is $35000 and fixed setup cost is $19000, then the variable fixed cost would be

a.

$16,000

b.

$54,000

c.

$64,000

d.

$74,000

Discuss
Answer: (a).$16,000
Q148.
The budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers, can be classified as

a.

anticipated budgeting

b.

number budgeting

c.

predict budgeting

d.

kaizen budgeting

Discuss
Answer: (d).kaizen budgeting
Q149.
The part of the master budget, which covers the capital expenditures, budgeted statement of cash flows and balance sheets are classified as

a.

financial budget

b.

capital budget

c.

cash flows budget

d.

balanced budget

Discuss
Answer: (a).financial budget
Q150.
The third step in developing operating budget is

a.

analysis of batches

b.

analysis of batches

c.

analysis of products

d.

making predictions about future

Discuss
Answer: (d).making predictions about future
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