STRATEGIC COST EXAM WITH ANSWER KEY PDF

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UNIT ‐  6MODULE ‐  10STANDARD COSTINGMultiple ChoiceQuestions According to __________ standard costing is, “the preparation and use of standard costs, their comparison with actual cost and the analysis of variances to their causes and points of incidence.” a. James b. ICWA London...

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 UNIT‐6  MODULE‐10 

STANDARDCOSTING   

MultipleChoice Questions  

1. Accordingto__________standardcostingis,“thepreparationanduseof standardcosts,theircomparisonwithactualcostandtheanalysisof variancestotheircausesandpointsofincidence.” a. James b. ICWALondon c. ICWAI d. Batty  2. Standardcostingmakestheworkofvaluationofinventoryeasier,because inventoryisvaluedat… a. Originalcost b. Predeterminedprice c. Marketprice d. Averageprice  3. Standardcostingtechniqueisnotidealforsmallconcernsbecauseitis… a. Tootechnical b. Anexpendituretechnique c. Complicated d. Noneofthese  4. Itiseasytodistinguishvariancesascontrollableanduncontrollable.The statementis… a. True b. False c. Partiallytrue d. Partiallyfalse  5. Thestandardcostingtechniqueisunsuitablefor… a. Tradingbusiness b. Manufacturingsector c. Joborderbusiness d. Wholesaler

6. Revisionofstandardscannotbeeliminatedbecauseof… a. Changeingovernmentpolicy b. Changeinbusinesscondition c. Changeinmanagement d. Changeinbusiness  7. Estimatedcosts.________thepurposeofcostcontrol. a. Serve b. Sometimesserve c. Donotserve d. Noneofthese  8. Accordingto_______standardcostis“apredeterminedcostwhichis calculatedfrommanagement’sstandardsofefficientoperationandthe relevantnecessaryexpenditure.” a. James b. ICWALondon c. ICWAI d. Batty  9. Standardcostsaredeterminedon… a. Zerobase b. Thebasisoftradecycle c. Scientificbasis d. Noneofthese  10.Costestimatesaremadeonthebasisof… a. Pastexperience b. Futureanticipation c. Both d. Intention 

11.In_______targetsarepredeterminedandactualperformancesis comparedwithtargets. a. Budgetarycontrol b. BothBudgetarycontrolandstandardcosting c. Standardcosting d. Marginalcosting  12.Thebasisforbudgetsandstandardsis(are)… a. Pastrecords b. Technicalinformation c. Both d. Noneofthese  13.Thevarianceanalysisisusedin… a. Marginalcosting b. Budgetarycontrol c. Standardcosting d. Ratioanalysis  14.Theothernameforidealstandardis… a. Theoreticalstandard b. Expectedstandard c. Normalstandard d. Basicstandard  15.Inidealstandard,thereisaroomfor… a. Wastage b. Idletime c. Someinefficiency d. Noneofthese  

16.Thestandardwhichisexpectedtobeachievedduringthebudgetperiodis calledas… a. Basicstandard b. Expectedstandard c. Normalstandard d. Noneofthese 

17.Whichofthefollowingstandardisunalteredoveraperiodoftime? a. Basicstandard b. Expectedstandard c. Normalstandard d. Noneofthese 

18.Whichstandardisidealforfixedexpenses? a. Basicstandard b. Idealstandard c. Normalstandard d. Expectedstandard 

19.Thestandardsshouldbesetfor… a. Directmaterial b. Directlabor c. Overheads d. Alloftheabove  20.Whowillbethecoordinatorforstandardscommittee? a. Chiefengineer b. Generalmanager c. Costaccountant d. Financecontroller    

21.Thestandardcostcardshowsthedetailsof… a. Materials b. Labor c. Productionprocess d. Alloftheabove 

22.Standardcostingishelpingthemanagementin… a. Increasingtheoverallefficiency b. Costreduction c. Increasingproductionefficiency d. Noneofthese  23.Timeandmotionstudyiswidelyadoptedinsettingu_________standard. a. Materialcost b. Materialprice c. Laborcost d. Allofthese 

24.Standardforvariousoverheadisbasedon… a. Thepastperformance b. Budgetoutput c. Forecast d. Alloftheabove 

25.Standardcostsare… a. Continuouscost b. Normalcost c. Pastcost d. Reasonablyattainablecost 26.Whichoneisidealforcostcontrolpurpose? a. Normalcost b. Standardcost c. Averagecost d. Continuouscosting...