hitechpathshala

Q. 1

Under standard cost system the cost of the product determined at the beginning of production is its:

Direct cost

Pre-determined cost

Historical cost

Actual cost

Q. 2

The deviations between actual and standard cost is known as:

Multiple analysis

Variable cost analysis

Variance analysis

Linear trend analysis

Q. 3

The standard which is attainable under favourable conditions is:

Theoretical standard

Expected standard

Normal standard

Basic standard

Q. 4

The standard most suitable from cost control point of view is:

Normal standard

Theoretical standard

Expected standard

Basic standard

Q. 5

Overhead cost variances is:

The difference between overheads recovered on actual output - actual overhead incurred.

The difference between budgeted overhead cost and actual overhead cost.

Obtained by multiplying standard overhead absorption rate with the difference between standard hours for actual output and actual hours worked.

None of the above

Q. 6

Which of the following variance arises when more than one material is used in the manufacture of a product:

Material price variance

Material usage variance

Material yield variance

Material mix variance

Q. 7

If standard hours for 100 units of output are 400 @ ₹ 2 per hour and actual hours taken are 380 @ ₹ 2.25 per hour, then the labour rate variance is:

₹ 95 (adverse)

₹ 100 (adverse)

₹ 25 (favourable)

₹ 120 (adverse)

Q. 8

Controllable variances are best disposed-off by transferring to:

Cost of goods sold

Cost of goods sold and inventories

Inventories of work–in–progress and finished goods

Costing profit and loss account

Q. 9

Idle time variance is obtained by multiplying:

The difference between standard and actual hours by the actual rate of labour per hour

The difference between actual labour hours paid and actual labour hours worked by the standard rate

The difference between standard and actual hours by the standard rate of labour per hour

None of the above.

Q. 10

Basic standards are:

Those standards, which require high degree of efficiency and performance.

Average standards and are useful in long term planning.

Standards, which can be attained or achieved

Assuming to remain unchanged for a long time.

Standard Costing

Marks: 10