Accounting Practice MCQ Page 28
Multiple Choice questions for Accounting in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 2118 At the end of a financial year Hot shot company had several substantial variances from standard variable manufacturing costs the one for which there is the strongest justification for allocation between inventories and cost of goods sold is the one attributable to
- additional costs of raw materials acquired under a speculative purchase contract
- a breakdown of equipment
- increased labour rates won by the union as a result of strike during the year
- overestimates of production activity for the period resulting from failure to predict an unusual decline in the market for the company' s product
Question: 2119 controllable variances are best disposed of by transferring to
- cost of goods sold
- inventories of work-in progress and finished goods
- cost of goods sold and inventories
- costing profit and Loss A/c
Question: 2120 Uncontrollable variances are best disposed of by transferring to
- cost of goods sold
- inventories of work-in -progress and finished goods
- cost of goods sold and inventories
- costing profit and Loss A/c
Question: 2126 overhead cost variance may be analysed into
- two variances
- three variances
- four three variances
- any of the above
Question: 2127 Which of the following statement best explains the difference between standard costing and budgetary contros
- Budget is a projection of financial accounts whereas standard cost is a projection of cost accounts
- variances are analysed under standard costing but not under budgetary control
- The budget, as a statement of expected costs, is used for forecasting of finance, if certain performances are achieved
- Budgetary control is more intensive than standard costing
Question: 2128 Fixed overhead expenditure variance is the difference between
- Budgeted overhead and actual overhead
- Standard overhead and actual overhead
- Absorbed overhead and budgeted overhead
- Absorbed overhead and standard overhead
Question: 2129 Variable overhead expenditure variance is the difference between
- Budgeted overhead and actual overhead
- Standard overhead and actual overhead
- Absorbed overhead and budgeted overhead
- Absorbed overhead and standard overhead
Question: 2130 Calendar variance is a sub-variance of
- Expenditure variance
- Efficiency variance
- variable overhead cost variance
- volume variance
Question: 2131 Total sales margin variance is the difference between
- Actual profit and standard profit
- Actual profit and budgeted profit
- Actual sales and budgeted ssles
- None of these
Question: 2132 which of the following variance id always adverse
- sales margin mix variance
- Fixed overhead capacity
- idle time variance
- None of these
Question: 2133 which of the following variances is always favourable
- overhead volume variance
- sales value mix variance
- calendar variance
- None of these
Question: 2134 sales volume variance is RS 9,000(F)and sales value variance is RS 5,000(F). what is the sales price variance RS 5,000(F)what is the sales price variance
- RS. 14,000(F)
- RS. 4,000(A)
- RS. 4,000(F)
- Non of these
Answers to the questions of Accounting on this page
Following list gives the correct choice for the answer of the Accounting mcqs.
2118 . C
2119 . D
2120 . C
2126 . D
2127 . C
2128 . A
2129 . B
2130 . D
2131 . B
2132 . D
2133 . D
2134 . B
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