This quiz works best with JavaScript enabled. Home > Cost Accounting > Standard Costing > Standard Costing – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Standard Costing Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The standard costing data used in the journal is ..... A) Budget cost data. B) Market price data. C) Past data. D) Estimation data. Show Answer Correct Answer: C) Past data. 2. ..... only work under perfect conditions. A) Ideal standards. B) Attainable standards. C) Variance standards. D) Margin standards. Show Answer Correct Answer: A) Ideal standards. 3. ..... cost is decided scientifically. A) Actual. B) Standard. C) Flexed. D) Marginal. Show Answer Correct Answer: B) Standard. 4. When computing variances from standard costs, the difference between actual and standard price multiplied by actual quantity yields a A) Combined price quantity variance. B) Price variance. C) Volume variance. D) Mix variance. Show Answer Correct Answer: B) Price variance. 5. Who is responsible for a labor efficiency variance? A) The Purchasing Agent. B) The Production Manager. C) The Production & Maintenance Managers. D) Supervisor. Show Answer Correct Answer: C) The Production & Maintenance Managers. 6. ..... cost represents what the cost should be. A) Standard. B) Process. C) Contract. D) Marginal. Show Answer Correct Answer: A) Standard. 7. Who is responsible for a materials usage variance? A) The Purchasing Agent. B) The Production Manager. C) The Production & Maintenance Managers. D) Supervisor. Show Answer Correct Answer: B) The Production Manager. 8. Who is responsible for a materials price variance? A) The Purchasing Agent. B) The Production Manager. C) The Production & Maintenance Managers. D) Supervisor. Show Answer Correct Answer: A) The Purchasing Agent. 9. An unfavorable labor quantity variance may be caused by A) Paying workers higher wages than expected. B) Misallocation of workers. C) Worker fatigue or carelessness. D) Higher pay rates mandated by union contracts. Show Answer Correct Answer: C) Worker fatigue or carelessness. 10. The materials price variance may be computed by A) (Actual price-Standard price) X Actual quantity used. B) (Actual price-Standard price) X Standard quantity. C) (Actual quantity-Standard quantity) X Actual price. D) (Actual quantity-Standard quantity) X Standard price. Show Answer Correct Answer: A) (Actual price-Standard price) X Actual quantity used. 11. Which of the following statements about budgets and standards are not correct A) A budget is based on an entire activity or operation. B) Standard provides the cost expectation for total activities. C) A standard is per unit cost. D) Standards are used when preparing budgets. Show Answer Correct Answer: B) Standard provides the cost expectation for total activities. 12. Excess direct labor wages resulting from overtime premium will be disclosed in which type of variance? A) Yield. B) Quantity. C) Labor efficiency. D) Labor rate. Show Answer Correct Answer: D) Labor rate. 13. A Standard cost is A) A predetermined costs based on a preconceived benchmark. B) Determined by industry standards. C) All of the above. D) None of above. Show Answer Correct Answer: A) A predetermined costs based on a preconceived benchmark. 14. Which of the following unfavorable variances would be directly affected by the relative position of a production process on a learning curve? A) Material mix. B) Material price. C) Labor rate. D) Labor efficiency. Show Answer Correct Answer: D) Labor efficiency. 15. The third step of the standard costing process is A) Determination of actual cost. B) Determination of causes and taking correction action. C) Comparison of actual costs and standard cost. D) Establishing standards. Show Answer Correct Answer: C) Comparison of actual costs and standard cost. 16. Which of the following is not a standard production cost is ..... A) Standard raw material costs. B) Standard administration fee. C) Standard factory overhead. D) Standard labor cost. Show Answer Correct Answer: B) Standard administration fee. 17. The direct materials quantity standard would not be expressed in A) Kilogram. B) Liter. C) RM. D) Meter. Show Answer Correct Answer: C) RM. 18. During July actual labour costs amounted to RM19, 800, the standard rate of pay was RM4.50 per hour and the labour rate variance amounted to RM225 adverse. The actual hours worked were: A) 1, 012.5. B) 4, 450. C) 4, 350. D) 4, 400. Show Answer Correct Answer: C) 4, 350. 19. Which of the following cannot be a reason of unfavorable direct materials quantity variance? A) Unmotivated workers. B) Lack of supervision. C) Frequent power failures. D) Uneconomical order size. Show Answer Correct Answer: D) Uneconomical order size. 20. A manager can be blamed for ..... adverse variance. A) Controllable. B) Non controllable. C) Improvement in quality. D) Reduction in cost. Show Answer Correct Answer: A) Controllable. ← PreviousNext →Related QuizzesCost Accounting QuizzesStandard Costing Quiz 1Standard Costing Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books