CA Inter Standard Costing — practice questions
33 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Inter Standard Costing in the app →Standard cost is the:Ideal standards represent performance under:Material cost variance equals:A variance is favourable when:Standard costing primarily aims at:Standard quantity 1,000 kg, actual quantity 1,100 kg, standard price ₹10. Material usage variance is:Standard price ₹10, actual price ₹12, actual quantity 1,000. Material price variance is:Labour rate variance = (Standard rate − Actual rate) × ?Labour efficiency variance = (Standard hours for actual output − Actual hours) × ?Material mix variance arises only when:Material yield variance focuses on:Variable overhead efficiency variance equals:Fixed overhead volume variance = (Actual output − Budgeted output) × ?Standard 5 kg at ₹4 per kg per unit. Actual 4,800 units used 25,200 kg at ₹4.20 per kg. Material cost varianceUsing the figures above, the material price variance is:Continuing the same data, the material usage variance is:Standard time 4,000 hours at ₹20 per hour. Actual 4,200 hours at ₹22. Labour cost variance equals:Same data: Labour rate variance is:Same data: Labour efficiency variance is:Budgeted fixed overhead ₹1,20,000 for 20,000 standard hours; actual hours 18,000; actual output deserves 17,00Same data: Fixed overhead volume variance equals:Same data: Fixed overhead efficiency variance equals:Same data: Fixed overhead capacity variance equals:Sales price variance equals:Standard costing aids in inventory valuation because:Material cost variance isMaterial price variance is measured asMaterial cost variance can be split intoAn adverse material price variance is generally the responsibility of theStandard quantity 500 kg at 20 per kg, actual 520 kg at 20 per kg. The material usage variance isWhen material purchased is not stated in a question, actual quantity for the price variance is taken asLabour efficiency variance measures the effect of a difference inStandard costing is most useful for control because standards are set