Question

Multiple Choice

50. Standards may be derived using a. historical data b. the assistance of industrial engineers c. benchmarking d. all of the above LO 2 51. Variances are calculated for which of the following reasons a. budgeting b. bookkeeping c. monitoring d. b and c LO 3 52. The process of calculating variances and analysing the reasons they occurred is called a. Benchmarking b. Budget analysis c. Trend analysis d. Variance analysis LO 3 53. Variance analysis includes which of the following processes? Calculating variances Choosing variances for further investigation Predicting variances in future periods a. I and II only b. I and II only c. I and III only d. I, II, and III LO 3

Answer 1

Solution 50:

Standards may be derived using:

a. historical data

b. The assistance of industrial engineers

c. bench marking

Hence option d "all of the above" is correct.

Solution 51:

Variances are calculated for bookkeeping and monitoring purpose. Hence option d is correct.

Solution 52:

The process of calculating variances and analysing the reasons they occured is called "Variance analysis"

Hence option d is correct.

Solution 53:

Variance analysis includes:

a. Calculating varainces

b. Choosing variances for further investigation.

Hence option a is correct.

solution 54:

If actual cost is less than budgeted cost then variance is favorable.

Hence option a is correct.

Solution 55:

Standard cost variances can be broken down into "Price and efficiency variance"

Hence option d is correct.

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