Cost and Managerial Accounting

171. The budget relating to ______________ must be prepared first and the other budgets should be prepared in the light of that factor.

  1. Limiting factor
  2. materials
  3. labour
  4. production
Correct answer: (A)
Limiting factor

172. ______________ is the consolidated summary of the various functional budgets.

  1. Master Budget
  2. Sales budget
  3. Performance budget
  4. Cash Budget
Correct answer: (A)
Master Budget

173. Calendar Ratio=

  1. Number of actual working days in a period x 100 Number of working days in the budget period
  2. Actual hours worked x 100 Budgeted hours
  3. Standard hours for actual production x 100 Actual hours worked
  4. Standard hours for actual production x 100 Budgeted standard hours
Correct answer: (A)

Number of actual working days in a period x 100 Number of working days in the budget period

174. Cash Budget is a ______________ budget.

  1. Long term
  2. very long term
  3. short term
  4. very short term
Correct answer: (C)
short term

175. The budget that is prepared first of all is ______________

  1. Cash budget
  2. master budget
  3. budget for the key factor
  4. sales budget
Correct answer: (C)
budget for the key factor

176. Standard costing is more widely applied in ______________ industries.

  1. Process and engineering
  2. jobbing industries
  3. construction industry
  4. all of these
Correct answer: (A)
Process and engineering

177. Material price variance is the difference between standard and actual prices of materials used multiplied by ______________

  1. Actual quantity of materials used
  2. Budgeted quantity of materials used
  3. Standard quantity of materials used
  4. Either a or b
Correct answer: (A)
Actual quantity of materials used

178. Total Material cost variance=

  1. Standard cost of materials-actual cost of materials
  2. Budgeted cost of materials- actual cost of materials
  3. Standard cost of materials-budgeted cost of materials
  4. Actual cost of materials- budgeted cost of materials
Correct answer: (A)
Standard cost of materials-actual cost of materials

179. Total Labour cost variance=

  1. Standard cost of labour - actual cost of labour
  2. Standard rate(standard time for actual output-actual time worked)
  3. Standard rate (standard time for actual output- actual time paid for)
  4. Actual time taken (standard rate-actual rate)
Correct answer: (A)
Standard cost of labour - actual cost of labour

180. An unfavourable material usage arises because of:

  1. Price increase in raw materials
  2. Price decrease in raw mateials
  3. Less than anticipated normal wastage in the manufacturingprocess
  4. More than anticipated normal wastage in the manufacturing process
Correct answer: (D)
More than anticipated normal wastage in the manufacturing process
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