State the correct answer in each of the following.
1. Cost variance is the difference between A] Standard cost and actual cost B] Standard cost and the budgeted cost C] Standard cost and the actual cost.
2. Standard cost is used A] As a basis for price fixation and cost control through variance analysis. B] To ascertain the break even point C] To establish cost volume profit relationship
3. A standard cost system may be used in A] Either job order costing or process costing B] Job order costing but not in process costing C] Process costing but not in the job order processing D] Neither process costing nor job order costing.
4. An un favourable material price variance occurs because of A] Price increase in raw material B] Price decrease in raw material C] Less than anticipated normal wastage in the manufacturing process D] More than anticipated normal wastage in the manufacturing process.
5. Which of the following is a purpose of standard costing? A] Determine a break even production level B] Control costs C] Allocate cost with more accuracy D] Eliminate the need for subjective decisions by management.
6. Material mix variance arises due to A] Increase or decrease in the cost of material consumed B] Increase or decrease in the normal loss C] Change in the standard proportion of mix D] None of these.
7. Material usage variance is normally chargeable to A] Production department B] Purchase department C] Finished goods D] Materials stores.
8. If actual hours worked exceed the standard hours allowed, the variance, which will occur is called as A] Favourable labour efficiency variance B] Favourable labour rate variance C] Unfavourable labour efficiency variance D] Unfavourable labour rate variance.
9. Standard costs are A] Estimated costs B] Budgeted costs C] Expected costs D] Scientifically predetermined costs.
10. Standards are fixed for A] Costs only B] Costs and Profits C] Costs, profits and sales D] Only for profits.