Standard Costing MCQs January 20, 2019November 22, 2018 by rashidjavedWe have prepared this MCQs quiz for Standard Costing so that students can assess who much they learned about this topic. Take the MCQs quiz below.Please enter your email: 1. Which of the following is true of standards? Standards represent a benchmark or a norm Standards relate to input quantity Standards relate to input cost All of the above 2. Standards that can be attained only under the best circumstances are referred to as: Attainable standards Budget standards Ideal standards Practical standards 3. Which of the following equations can be used to calculate a material price variance? (AQ X AP) – (AQ X SP) (AP X SP) – (AQ X SP) (AQ X SP) – (SQ X SP) (AQ X SP) – (AQ X AP) 4. Who is most likely to be held responsible for a material price variance? Line workers Production supervisors Purchasing managers Production schedulers 5. Which of the following equations can be used to calculate a material quantity variance? (AQ X AP) – (AQ X SP) (AP X SP) – (AQ X SP) (AQ X SP) – (SQ X SP) (AQ X SP) – (AQ X AP) 6. To produce a particular batch of product, Foster Corporation paid its workers $12.00 per hour for 4,000 hours of work. The standards for the quantity of work represented by the batch were $12.50 per hour and 4,400 hours. What was the labor efficiency variance? 2,000.00 favorable 5,000.00 favorable 5,000.00 unfavorable 7. The firm’s direct-labor rate variance was $4,800 unfavorable. Actual labor was 24,000 direct-labor hours, at a cost of $168,000, for 25,000 units of finished product that require 1 hour of direct labor each, at standard. What is the standard rate per direct-labor hour? $7.20 $6.80 $7.00 Cannot be determined from the information given None of the above 8. Which of the following is not an advantage of standard costing? It provides a basis for sensible cost comparisons It enables managers to employ management by exception It provides a mean of performance evaluation and employee rewards It is usually less expensive than actual or normal costing It works well with long and short product life cycles 9. Which of the following is NOT a criticism of a standard-costing system? It is more expensive than other systems Variances calculated under standard-costing come too late to be useful It can cause dysfunctional behavior in a JIT/FMS environment Traditional cost variances are not tied to specific product line None of the above 10. The organization budgeted $400,000 for 40,000 hours of direct labor to complete 16,000 units of finished product. The firm used 42,000 direct-labor hours and completed 17,000 units of finished product. What is the direct-labor rate variance? 20,000 unfavorable 25,000 favorable 25,000 unfavorable Cannot be determined from the information provided None of the above Loading … Next Quiz: Variable Costing MCQsGet Free accounting essay samples at Howtowrite.Customwritings.com Related posts:Q. 1. What is Standard Costing? What are its features ? Discuss the essentials of an effective standard costing. Q. 2. What are the advantages of standard costing ? Discuss its limitations. Q.3 How will you differentiate between standard costing and budgetary control? Q. 4. What is the difference between standard costing and historical costing? Q. 6. What are the characteristics of Standard Costing? Q. 8. Standard Costing practical problems and solutions Labor Costing MCQs What are cost variances? Overhead variances Direct Labor Variances 1 thought on “Standard Costing MCQs” Pingback: Flexible Budgets MCQs - Play AccountingLeave a Comment Cancel replyCommentName Email WebsiteSave my name, email, and website in this browser for the next time I comment.