Use of Variances Multiple Choice Questions with Answers – PDF Download

MCQ 1: The consideration of decreased operating income relative to budgeted amount, in static budget is classified as:

1. revenue variance
2. cost variance
3. favorable variance
4. unfavorable variance

MCQ 2: The variance is the stated difference between expected performance and the:

1. revenue planning
2. actual results
3. marketing results
4. cost planning

MCQ 3: The budget which is planned around a single output level is called:

1. marketing budget
2. methodological budget
3. static budget
4. varied budget

MCQ 4: The static budget amount is subtracted from the actual result to calculate:

1. static budget receipts
2. static budget deviation
3. static budget variance
4. multiple budget variance

MCQ 5: If an actual result is $50000 and the static budget variance is $25000, then the static budget amount will be:

1. $75,000
2. $25,000
3. $35,000
4. $45,000