题目

In decision making, costs which need to be considered are said to be relevant costs. Which of the following are characteristics associated with relevant costs?(i) Future costs(ii) Unavoidable costs(iii) Incremental costs(iv) Differential costs

A

(i) and (iii) only

B

(i) and (ii) only

C

(i), (iii) and (iv) only

D

All of them 

Chapter18Capitalexpenditurebudgeting

A decision is about the future, therefore relevant costs are future costs (i). If a cost is unavoidable then any decision taken about the future will not affect the cost, therefore unavoidable costs are not relevant costs (ii). Incremental costs are extra costs which will be incurred in the future therefore relevant costs are incremental costs (iii). Differential costs are the difference in total costs between alternatives and they are therefore affected by a decision taken now and they are associated with relevant costs (iv).A decision is about the future, therefore relevant costs are future costs (i). If a cost is unavoidable then any decision taken about the future will not affect the cost, therefore unavoidable costs are not relevant costs (ii). Incremental costs are extra costs which will be incurred in the future therefore relevant costs are incremental costs (iii). Differential costs are the difference in total costs between alternatives and they are therefore affected by a decision taken now and they are associated with relevant costs (iv).

多做几道

A company uses a standard absorption costing system. Last month budgeted production was 8,000 units and the standard fixed production overhead cost was $15 per unit. Actual production last month was 8,500 units and the actual fixed production overhead cost was $17 per unit.What was the total adverse fixed production overhead variance for last month?

A

$7,500

B

$16,000

C

$17,000

D

$24.500

A cost centre had an overhead absorption rate of $4.25 per machine hour, based on a budgeted activity level of 12,400 machine hours.In the period covered by the budget, actual machine hours worked were 2% more than the budgeted hours and the actual overhead expenditure incurred in the cost centre was $56,389.What was the total over or under absorption of overheads in the cost centre for the period?

A

$1,054 over absorbed

B

$2,635 under absorbed

C

$3,689 over absorbed

D

$3,689 under absorbed

Which of the following would help to explain a favourable direct labour efficiency variance?

(i) Employees were of a lower skill level than specified in the standard

(ii) Better quality material was easier to process

(iii) Suggestions for improved working methods were implemented during the period

A

(i), (ii) and (iii)

B

(i) and (ii) only

C

(ii) and (iii) only

D

(i) and(II) only

Which of the following statements is correct?

A

An adverse direct material cost variance will always be a combination of an adverse material price variance and an adverse material usage variance

B

An adverse direct material cost variance will always be a combination of an adverse material price variance and a favourable material usage variance

C

An adverse direct material cost variance can be a combination of a favourable material price variance and a favourable material usage variance

D

An adverse direct material cost variance can be a combination of a favourable material price variance and an adverse material usage variance

The following information relates to labour costs for the past month:

Budget                 Labour rate                      $10 per hour

                            Production time                15,000 hours

                           Time per unit                     3 hours

                           Production units                5,000 units 

Actual                Wages paid                       $176,000

                          Production                         5,500 units 

                        Total hours worked             14,000 hours

There was no idle time.

What were the labour rate and efficiency variances? 

A

Rate variance                 Efficiency variance

$26,000 Adverse           $25,000 Favourable

B

Rate variance                 Efficiency variance

 $26,000 Adverse           $10,000 Favourable

C

Rate variance                 Efficiency variance

 $36,000 Adverse           $2,500 Favourable

D

Rate variance                 Efficiency variance

 $36,000 Adverse           $25,000 Favourable

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