Price and Efficiency Variance Multiple Choice Questions with Answers – PDF Download

MCQ 1: If the actual price input is $700, the budgeted price of input is $400 and the actual quantity of input are 50 units, then the price variance will be:

1. $15,000
2. $13,000
3. $11,000
4. $9,000

MCQ 2: If the actual input price is $150 and the budgeted input price is $80, then the price variance will be:

1. $130
2. $70
3. $150
4. $80

MCQ 3: The standard input allows one unit, to be divided by standard cost per output unit, for variable direct cost input to calculate:

1. standard price per input unit
2. standard price per output unit
3. standard cost per input unit
4. standard cost per output unit

MCQ 4: If the flexible budget variance is $105000, the actual cost is $65000 then the flexible budget cost will be:

1. $40,000
2. $50,000
3. $150,000
4. $170,000

MCQ 5: The degree which predetermines target or income achieved, can be grouped under:

1. growth evaluation
2. performance evaluation
3. efficiency
4. effectiveness