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CMA Inter Standard Costing — practice questions

Explore 12 free Standard Costing questions in CMA Inter Cost and Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Standard Costing questions and exercises with answers

Showing questions 1–12 of 12.

Complete the material price varianceRead the answer and worked solution →Which variance family is it?Read the answer and worked solution →True or false: reading a varianceRead the answer and worked solution →Match the variance to what it isolatesRead the answer and worked solution →Material cost variance isRead the answer and worked solution →Material price variance is measured asRead the answer and worked solution →Material cost variance can be split intoRead the answer and worked solution →An adverse material price variance is generally the responsibility of theRead the answer and worked solution →Standard quantity 500 kg at 20 per kg, actual 520 kg at 20 per kg. The material usage variance isRead the answer and worked solution →When material purchased is not stated in a question, actual quantity for the price variance is taken asRead the answer and worked solution →Labour efficiency variance measures the effect of a difference inRead the answer and worked solution →Standard costing is most useful for control because standards are setRead the answer and worked solution →

Worked practice questions

Complete the material price variance

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Missing parts
  1. Answer
    Quantity
    Choices
    1. Quantity
    2. Value
    3. Rate
  2. Answer
    standard
    Choices
    1. budgeted
    2. standard
    3. revised
  3. Answer
    actual
    Choices
    1. standard
    2. average
    3. actual
Complete the statement
Material Price Variance = Actual {0} multiplied by the difference between {1} price and {2} price.
Instructions
Tap a term into each blank to finish the variance formula.
_Source: ICAI CA Inter Cost and Management Accounting, Ch13 'Standard Costing', 13.7.1_

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Which variance family is it?

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Questions
  1. Items
    1. Text
      Price variance
      Matches the category
      Yes
    2. Text
      Usage variance
      Matches the category
      Yes
    3. Text
      Mix variance
      Matches the category
      Yes
    4. Text
      Rate variance
      Matches the category
      No
    5. Text
      Efficiency variance
      Matches the category
      No
    Category
    Material variances
  2. Items
    1. Text
      Rate variance
      Matches the category
      Yes
    2. Text
      Efficiency variance
      Matches the category
      Yes
    3. Text
      Idle time variance
      Matches the category
      Yes
    4. Text
      Usage variance
      Matches the category
      No
    5. Text
      Price variance
      Matches the category
      No
    Category
    Labour variances
Instructions
Tap only the variances that belong to the family named on top.
_Source: ICAI CA Inter Cost and Management Accounting, Ch13, 13.7 variance tree_

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True or false: reading a variance

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Questions
  1. Statement is true
    Yes
    Statement
    Material cost variance is standard cost less actual cost.
  2. Statement is true
    Yes
    Statement
    Material price variance is usually the purchase department's responsibility.
  3. Statement is true
    Yes
    Statement
    Material cost variance equals usage variance plus price variance.
  4. Statement is true
    No
    Statement
    A favourable variance means actual cost exceeded standard cost.
  5. Statement is true
    No
    Statement
    Standard cost is recorded after the work is finished.
Instructions
Decide whether each statement about standard costing is true.
_Source: ICAI CA Inter Cost and Management Accounting, Ch13, 13.7.1 and responsibility notes_

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