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 4 of 20

Discover more Topics under Cost Accounting

Q31.
If the budgeted price of input is $50, actual quantity of input is 150 units and the allowed budgeted quantity of input is 60 units then efficiency variance will be

a.

$4,500

b.

$3,500

c.

$2,500

d.

$1,500

Discuss
Answer: (a).$4,500
Q32.
An efficiency variance is subtracted from actual input quantity to calculate

a.

actual quantity manufactured

b.

budgeted quantity manufactures

c.

budgeted quantity sold

d.

budgeted input quantity

Discuss
Answer: (d).budgeted input quantity
Q33.
An actual cost is subtracted from flexible budget cost to calculate

a.

positive cost variance

b.

negative cost variance

c.

flexible budget variance

d.

flexible cost variance

Discuss
Answer: (c).flexible budget variance
Q34.
The difference between an actual budget and the corresponding amount in static budget is classified as

a.

correspondent budget

b.

full budget variance

c.

methodology variance

d.

static budget variance

Discuss
Answer: (d).static budget variance
Q35.
If an actual input price is $70 and the budgeted input price is $40, then the price variance will be

a.

$120

b.

$50

c.

$110

d.

$30

Discuss
Answer: (d).$30
Q36.
If an actual result is $50000 and the static budget variance is $25000, then the static budget amount will be

a.

$75,000

b.

$25,000

c.

$35,000

d.

$45,000

Discuss
Answer: (b).$25,000
Q37.
If the actual price input is $500, the budgeted price of input is $300 and the actual quantity of input is 50 units, then the price variance would be

a.

$4,000

b.

$6,000

c.

$8,000

d.

$10,000

Discuss
Answer: (d).$10,000
Q38.
If an actual result is $250000 and the static budget amount is $150000, then the static budget variance for operating income will be

a.

$400,000

b.

$500,000

c.

$100,000

d.

$600,000

Discuss
Answer: (c).$100,000
Q39.
The master budget, which is based on the planned output level at the start of budget period is considered as

a.

static budget

b.

varied budget

c.

marketing budget

d.

methodological budget

Discuss
Answer: (a).static budget
Q40.
The price variance for direct manufacturing labor is referred as

a.

direct variance

b.

rate variance

c.

labor variance

d.

manufacturing variance

Discuss
Answer: (b).rate variance
Page 4 of 20