Cost Accounting Variance Formulas - CPA Business Environment and Concepts (BEC)

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Question

The differences between standard hours at standard wage rates and actual hours at standard wage rates is referred to as which of the following types of variances

Answer

The difference between standard hours at standard wage rates and actual hours at standard rates is the labor usage/efficiency variance.

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Question

Which of the following types of variances would a purchasing manager most likely influence?

Answer

The direct materials price variance could be used to monitor purchasing manager performance.

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Question

Which of the following standard costing variances would be least controllable by a production supervisor?

Answer

The overhead volume variance is a function of the budgeted amount of overhead based on standard hours. The production supervisor has little control over established standard and budgeted amounts.

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Question

The only sales variance listed below that does not use contribution margin to compute results is:

Answer

The sales price variance does not use contribution margin.

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Question

The production volume variance is due to:

Answer

The production volume variance is due to the difference from the planned level of the based used for overhead allocation and the actual level achieved.

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Question

The cost of goods manufactured would generally not include which of the following?

Answer

Selling costs are not relevant for the goods a firm manufactures, rather this would be relevant for the cost of goods sold.

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