ucl a Pevenue and certain costs will differ in total b. When the actual level of
ID: 2586634 • Letter: U
Question
ucl a Pevenue and certain costs will differ in total b. When the actual level of production or sales is achieved c. Static budget does not consider environmental changes as they happen d. All of the above. E. None of the above. 25. The relevant level of operation for most organizations is: a. The theoretical capacity level. b. The practical capacity level. c. The normal capacity level. d. All of the above. e, Only b and c above. 26. T, F. In order to avoid the transfer of inefficiencies of service departments to operating departments, service departments should charge operating departments standards cost rather tha actual costs. 27. T, F. Standard is a bench mark for performance measurement and reward. 28. T, F. Price Variances in materials costs are the differences between standard and actual cos due to fluctuations in the price paid for raw materials. 29. T, F. Quantity variance in material costs are the differences between standard and actual co due to fluctuations in the quantities of materials budgeted. 30, T. F. Labor rate variances are the differences between standard and actual costs due to fluctuations in wage rates. 31. T, F. Efficiency variances in labor costs are the differences between standard and actual co due to fluctuations in the number of labor hours required to complete a product or job.Explanation / Answer
25. Option D is correct I.e , all of the above.
26.The given statement is FALSE since performance is measured on the basis of variations between actual and budgets but not always on budgets.
27.True a standard is one by which the performance is measured to decide how efficiently the task was performed and acts as a basis for reward.
28.True. As the price is determined by the market factors ,which may fluctuate it will be the difference between budgeted and actuals.
29.True. When the budgeted and the actually used quantity differs it results in the variation in the quantity.
30.It would be fake because all the time the variance is cases such as labour is not only caused by the fluctuations in wage rates but also depending upon the number of labour employed and here the size of labour is the core reason for the variance but not change in wage rates.
31. True. Labour efficiency variance is the result of difference between actual and standard labour hours needed to complete the work.
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