Fixed Overhead Cost Variances MCQ with Answers PDF Download – Test 64

If an actual incurred cost is $387500 and the flexible budget amount is $168750, then fixed overhead variance of flexible budget would be

1. $518,750
2. $418,750
3. $218,750
4. $318,750

The budget, which predicts the effect of given level of operations on a cash position is classified as

1. market budget
2. price schedule
3. planned schedule
4. cash budget

The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as

1. nominal rate of return
2. accrual accounting rate of return
3. real rate of return
4. required rate of return

As compared to cumulative average-time learning model, the learning model which predicts more cumulative total time to produce more units is known as

1. incremental unit time learning model
2. incremental price learning model
3. incremental unit average model
4. incremental cost learning model

An ability of an organization, to offer its services or products that must be perceived by customers as unique and superior, in comparison to its competitors is called

1. inelastic demand
2. product differentiation
3. cost leadership
4. elastic demand