WorksheetsStandard costing
Total questions: 14
Worksheet time: 7mins
Standard costing is ...
The total costs of the business absorbed amongst all cost units
The cost of producing one extra unit of output
The attribution of overheads to output on the basis of activities
A pre-determined cost for materials, labour and overheads set in advance of production
Which department is responsible for the price of materials?
Purchasing
Human resources
Production
Which department is responsible for the amount of materials used in making an item?
Purchasing
Human resources
Production
Which department is responsible for setting wage rates?
Purchasing
Human resources
Production
Which department is responsible for the number of hours of labour used?
Purchasing
Human resources
Production
Which variance is this: AQ(SP - AP)
Labour rate variance
Labour efficiency variance
Material price variance
Material usage variance
Which variance is this: SR (SH - AH)
Labour rate variance
Labour efficiency variance
Material price variance
Material usage variance
Which variance is this: SP (SQ - AQ)
Labour rate variance
Labour efficiency variance
Material price variance
Material usage variance
Which variance is this: AH (SR - AR)
Labour rate variance
Labour efficiency variance
Material price variance
Material usage variance
Which variance is this: AQ (SP - AP)
Labour rate variance
Labour efficiency variance
Sales price variance
Sales volume variance
The total labour variance is the sum of the labour rate variance and the labour efficiency variance.
True
False
When the actual number of units produced is different to the budgeted number of units produced, SQ is ...
The standard quantity for the budgeted number of units
The standard quantity for the actual number of units
The actual quantity for the budgeted number of units
The actual quantity for the actual number of units
A sales variance is the difference between the standard sales revenue and the actual sales revenue for the product or service.
True
False
Which three of these are advantages of standard costing?
Helps with decision making
Use for price-setting
Controlling costs
Finding the total cost of a product
Help with planning
