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

MCQ 316: 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

MCQ 317: 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

MCQ 318: 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

MCQ 319: 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

MCQ 320: 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