Standard costing is a method of cost ascertainment. False 4. Variances are calculated for both material and labour. True 5. Standard cost is most suitable to job order industries. False 6. Relevant costs are historical in nature.
When to recognize a variance in standard costing?
The most advantageous time to recognize a variance in the standard cost of a product’s direct material is at the time the material is put into which of the following inventories. Right! Isolating and recording the price variance as soon as possible is viewed as advantageous.
How is standard costing-finance ( MCQ ) questions answered?
It is standardized on the basis of past experience with no adjustments made for time and motion study c. In fixing standard time due allowance should not be given to fatigue and tool setting d. The Production manager does not provide any input in setting the labour time standards No explanation is available for this question!
How are standards classified on the basis of price?
8) Setting of standards are classified on the basis of only price. a. True b. False No explanation is available for this question! a. Computation of variances b.
Which is the correct answer to a multiple choice question?
In the following multiple choice questions, circle the correct answer. 1. A numerical value used as a summary measure for a sample, such as sample mean, is known as a e. None of the above answers is correct. 2. Since the population size is always larger than the sample size, then the sample statistic e. None of the above answers is correct. 3.
How is adverse variance determined in a McQ?
Variance 4. MCV = MPC + MUV. 5. MUV = MMV + MYV. 6. Favourable variance arises when actual costs are less than standard cost. 7. Adverse variance arises when actual revenue is less than standard revenue. 8. Standard time is decided by time and motion study.
