Question

The following extract has been provided from a company’s performance report:

	£
Sales volume variance	2,500 Adverse
Sales price variance	5,000 Favourable
Material usage variance	750 Favourable
Material price variance	1,000 Adverse

Which of the following statements could explain the performance? (Select one option only).

Select one:

More units have been sold than expected

The material wastage rate has been lower than expected

Material purchased is of poorer quality than expected.

Contribution per unit is lower than expected.

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What is the main difference between a fixed and flexible budget?

Select one:

A flexible budget considers only variable costs, but a fixed budget considers all costs.

A fixed budget is produced for an entire organisation, but a flexible budget is applicable only to a single department.

Flexible budgets can provide less realistic control information than fixed budgets.

A fixed budget is based on a specific level of production/sales and a flexible budget can be prepared for any production level.

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Which of the following statements is incorrect?

Select one:

A normal distribution curve is a frequency distribution that is symmetrical and bell shaped.

The following indicate how data is dispersed: standard deviation, mean, range, and variance.

A disadvantage of the arithmetic mean of a grouped frequency distribution is that its value may not correspond to any actual value in the frequency distribution.

A histogram is a pictorial representation of a grouped frequency distribution.

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Which of the following statements are incorrect? (Select one option only).

Select one:

The median is a useful measure of the centre of a distribution because it is not affected by unusually high or low values.

A scatter chart is useful to identify whether there is correlation between two sets of data.

A pie chart is a useful method of illustrating the trend of profit over time.

A distribution with values clustered around the mean will have a smaller standard deviation than a distribution with values which are evenly spread.

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Complete the following sentence using one of the four options below.

A scatter graph on which the points tend to  blank indicates positive correlation.

'Drag and drop' the correct option into the box

   

Match the statistical measure with its description by filling the blanks with the phrases below. You can do this by dragging and dropping, using your mouse.

The  blank measures the proportion of the total variation in the value of one variable that can be explained by the variations in the value of the other.
The  blank describes how two variables move together.
The  blank compares the dispersion of two distributions.
The  blank describes short-term fluctuations in recorded values.

1 seasonal variation, 2 co-effecient of determination 3 coorlation co-effecient 4 co-effecient of variation

Answer 1

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Which of the following statements could explain the performance? (Select one option only).
The material wastage rate has been lower than expected
What is the main difference between a fixed and flexible budget?
A fixed budget is based on a specific level of production/sales and a flexible budget can be prepared for any production level.
Which of the following statements is incorrect?
A histogram is a pictorial representation of a grouped frequency distribution.
Because it is a graphical representation and not pictorial representation.
Which of the following statements are incorrect?
A distribution with values clustered around the mean will have a smaller standard deviation than a distribution with values which are evenly spread.
Complete the following sentence using one of the four options below.
A scatter graph on which the points tend to blank indicates positive correlation.
The blank measures the proportion of the total variation in the value of one variable that can be explained by the variations in the value of the other.