Standar Costing Quiz

What is meant by costing standards?

• Method to reduce production costs

• System for determining costs based on previously set standards

• Method of establishing actual costs in production

• System for allocating overhead costs to products

The main components of costing standards are...

• Actual costs and fixed costs

• Raw material costs, direct labor costs, and overhead costs

• Production costs and marketing costs

• Fixed and variable costs

The purpose of costing standards is to...

• Increase sales

• Lower product prices

• Measure production cost efficiency

• Determine product selling prices

Variances in costing standards arise when...

• Actual costs equal standard costs

• Actual costs are higher or lower than standard costs

• There is no actual cost data

• Production exceeds normal capacity

The following are included in variances in costing standards...

• Price variance and efficiency variance

• Revenue variance and production variance

• Fixed variance and variable variance

• Marketing variance and sales variance

If the standard cost of raw materials is Rp50,000 per unit, and the actual cost is Rp55,000 per unit, then the price variance is...

• No variance

• Favorable Rp5,000

• Unfavorable Rp5,000

• Cannot be calculated

What causes labor efficiency variance?

• Changes in wage rates

• Differences between actual working hours and standard working hours

• Differences in raw material prices

• Increased overhead costs

Costing standards help management to...

• Set product pricing policies

• Identify areas needing improvement

• Increase production capacity

• Reduce the number of workers

In calculating fixed overhead variance, we need data...

• Standard working hours and actual working hours

• Actual raw material costs

• Actual and standard production volumes

• Selling prices of products

If the total cost variance is Rp10,000 Favorable, it means...

• Actual costs are lower than standard costs by Rp10,000

• Actual costs are higher than standard costs by Rp10,000

• Standard costs are not achieved

• There is no difference between standard costs and actual costs