Question

Explanation not necessary The variable overhead efficiency variance is caused by the difference between which of the following? A actual and budgeted units B. actual and standard overhead rates C. actual and standard allocation base D. actual units and actual overhead rates This standard is set at a level that could be achieved if everything ran perfectly. A unattainable standard B. attainable standard C. variance from standard D. ideal standard Which of the following statements is not correct? A The direct materials budget begins with the sales estimated for each period. B. The production budget begins with the sales estimated for each period. C. The sales budget is typically the first budget prepared. D. The sales budget is computed by multiplying estimated sales by the sales price. Which of the following is a finance budget? A. tax budget B. direct materials purchasing budget C. cash budget D. production budget Which approach requires management to justify all its expenditures? A zero-based budgeting B. master budgeting C. capital allocation budgeting D. bottom-up approach

Answer 1

1. A - Variable Overhead varies due to the difference between the actual and budgeted units

2. D - Ideal Standard is the one attainable if everything works perfectly

3. A - Others are correct

4. C - Cash budget is basically a financial budget which states the inflow and outflow of cash

5. A - Zero based budgeting is a budgeting method which justifies all the expenditure for a specified period