QA Stacks

Accounting for Managers Question and Answers

Module 1

  1. Financial Accounting provides ………….data

Forward looking

Historical

Predictive

All of the above

  1. Financial accounting records…………..

Actual

Standard

Estimates

All of the above

  1. Financial accounting furnishes data on

Financial performance of the business

Financial position of the business

Cash flow during the year

All of the above

  1. The function of accounting involves

Recording, classifying and summarizing of financial transaction.

Recording of financial transaction.

Recording, classifying and summarizing of financial transaction as well as non financial transactions.

Recording of financial transaction as well as non financial transactions of the business.

  1. All except the following are objectives of financial accounting

Make predictive analysis

Provide financial information about the business to stakeholders

Ensure proper and permanent record of financial of the business

Help understand the financial position of the business

  1. One of the following is a limitation of accounting

Records financial transaction

Helps understand the financial position and financial performance of the business

Provides data for calculation of tax liability of the business

Lgnores time value of money

  1. The following branch of accounting generates reports financial information for the internal use of the management of the business.

Financial accounting

Cost accounting

Management accounting

All of the above

  1. The following is the function of cost accounting

Preparation of financial statement

Generation of financial reports for internal use of management

Provide relevant cost related information with objective of cost control and cost reduction

All of the above

  1. At times financial statements generated by accounting may fail to report the economic reality because

They may report non-financial business transactions

They may be vitiated by window dressing and error

Too many people might be working on generation of financial statements thereby leading to chaos

All of the above

  1. The following branch of accounting will provide data that is used for raising finance from external sources

Management accounting

Cost accounting

Book keeping

Financial accounting

 

Module 2

  1. Accounting is an …….

Management system

Operating system

Information system

Analytical system

  1. Accounting as information system performs all but following functions

Processes data to generate information

Store the processed data

Generates financial statements and reports

All of the above

  1. All except one of the following are the external users of accounting information

Employees

Supplies

Customers

Government

  1. Accounting is an information system because

It is done using accounting software

It is language of the business

It maintains systematic record of business transactions

It processes financial data of the business to generate financial statement and reports

  1. All the following should be the characteristics of the accounting information except

Relevant

Non- objective

Consistent

Reliable

  1. Which of the following is the component of accounting system

People

Process

Data

All of the above

  1. As bankers who have lent money to the business, you would be concerned with

Composition of assets of the business

Financial stability

Growth in profit

Earning available to owners

  1. For financial information to be reliable, all the following except one is essential

It should communicate the economic reality of the business

It should be window dressed

It should be generated by applying consistent accounting policies over a period of time

It should be timely generated

  1. As a supplier, you would be more concerned about

Growth in profits

Liquidity

Composition of assets of the business

Sources of external financing

  1. Government and regulatory authorities would be interested in the financial statement of a business from the point of view

Taxes and compliances

Growth in profits

Financial stability

Composition assets

 

Module 3

  1. As sole proprietor decided to use the bank account for his personal affairs as for his business. Which of the following accounting principles violated?

Going concern

Business entity

Money measurement

Conservation

  1. Conservatism concept does not require?

Making provision for doubtful

Valuing stock at lower of cost or net realizable value

Creating provision for discount on creditors

Making provision for an unfavourable legal suit

  1. Which of the following concepts, if violated, would make comparison of financial statements over a period of time difficult?

Cost concept

Consistency concept

Accounting period concept

Accrual concept

  1. Human Resource is not taken as assets in accounting books because of?

Cost concept

Money measurement concept

Entity concept

Disclosure concept

  1. Capital (Amount invested by owner) is shown in liabilities side of balance sheet because of

Cost concept

Money measurement concept

Business entity concept

Disclosure concept

  1. Income earned for a particular accounting period should be matched against the expenses incurred during that period to earn the revenue. This is as per?

Cost concept

Money measurement concept

Realization concept

Matching concept

  1. The need for valuation of closing stock and taking it into accounts arises because of?

Accounting period concept

Prudence concept

Entity concept

Money measurement concept

  1. Goods sold on credit basis should be recorded as Revenue at the time of sales and not at the time of receipt of money. This is as per?

Conservatism concept

Entity concept

Dual aspect concept

Realization concept

  1. Assets are recorded at their original purchase price according to the concept of

Materiality

Cost

Cost benefit

Consistency

  1. The going concern assumes that

The entity continue running for foreseeable future

The entity continue running until the end of accounting period

The entity will close its operating in 10 years

The entity cannot be liquidated

 

Module 4

  1. The term GAAP refers to ?

Generally accepted accounting principles

Generally accepted auditing  practices

Generally applied accounting practices

Generally applied auditing principles

  1. Rapid globalization; harmonization with a single set of rules or standards for financial reporting will facilitate

All of the above

Elimination of reinstatement of financial statements

Greater transparency

Uniformity

  1. International financial reporting standards (IFRS) are

Rule –based

Compliance- based

Principle –based

Action –based

  1. The following accounting standards advocate use of fair value

Indian GAAP

Us GAAP

IFRS

None of these

  1. The ministry of corporate affairs has notified --------- Indian accounting standards applicable for companies in India

25

2

10

41

  1. The following standards have world –wise adoption

Indian GAAP

Us GAAP

INDAS

IFRS

  1. As per Indian accounting standard-16 property, plant and equipment(PPE) the following will be included in initial cost of PPE except-------

Cost of purchase/ construction

Non- refundable duties and taxes

Cost of designing, architect fees etc in case of construction of an asset

Operating losses before commercial production

  1. An inventory is costed at Rs 125/unit. The estimated selling price is Rs 200/unit. It still requires some completion effort to the tune of Rs 60/unit. The brokerage costs for making the sale are @ 10%. The inventories should be valued for the B/s at?

Rs 125/unit

Rs 120/unit

Rs 115/unit

Rs 110/unit

  1. INDAS 2 prescribes the use of which method of inventory valuation?

FIFO & LIFO

FIFO & Weighted average cost

FIFO, LIFO and Weighted average cost

LIFO & Weight average cost

  1. Events after the reporting period are ----------events that occur between the end of the reporting period and the date when the financial statements are authorized for an issue?

Predictable as well as non- predictable

Favourable as well as unfavourable

Relevant as well as non- relevant

Consistent as well as non- consistent

 

Module 5

  1. A business borrowed Rs. 35000 from its bank, and used the cash to buy a new computer. How is the accounting equation affected by these transaction?

Asset unchanged; liabilities decreased

Asset unchanged; liabilities increased

Asset increased; liabilities increased

Asset increased; liabilities decreased

  1. Cash purchases will result in?

Increase in assets

Decrease in assets

No change in total assets and liabilities

Increase in total assets and liabilities

  1. Varsha started a business and bought in Rs. 50000 cash as capital. Which of the following is the correct way to record this transaction?

Increase cash 50000 increase capital 50000

Decrease capital 50000 decrease cash 50000

Increase cash 50000 decrease capital 50000

Increase capital 50000 decrease cash 50000

  1. Inventory is

Included in category of fixed assets

An investment

A part of current assets

An intangible fixed asset

  1. Journal is known as a book of --------entry?

Secondary

Duplicate

Primary

Nominal

  1. Purchase of stationery by abacus stationers who are trading in stationery item will be debited to

Purchase A/c

Stationary A/c

Abacus stationers A/c

General Expenses A/c

  1. When fixed assets are sold for cash

Total assets will increase

Total liabilities will increase

Total assets will decrease

There is no change in total assets

  1. Which one of the following could not be classified as revenue from operation?

Goods sold for cash

Sales on credit

Fees from the sale of services

Income from the sale of fixed assets

  1. A business entity has assets Rs 36000 long term liabilities Rs 10000 and short term liabilities of Rs 6000. Owners equity (capital) in this case will be

Rs 52000

Rs 36000

Rs 20000 

Rs 16000

  1. A proprietor introduced his personal laptop in the business; this will lead to

Increase in asset and increase in liability

Increase in liability and decrease in asset

Increase in asset and decrease in liability

Decrease in asset and decrease in liability

 

Module 6

  1. A Trial balance is a list of  ?

All assets and liabilities of the business

All the transaction of the business

All the debit and credit balances of the accounts

All the income and expenses of the business

  1. Credit balance of a personal A/c in a trial balance represents?

Amount payable by the business

Amount payable by the party

Amount receivable by the business

Amount receivable by the party

  1. If a trial balance totals do not agree, the difference must be entered in-

The profit and loss account

A nominal account

The capital account

A suspense account

  1. Trial balance represents?

Result of all monetary transactions recorded and unrecorded in the books of account

Result of all monetary transactions recorded in the book of account

Result of all monetary and non- monetary transactions

All of the above

  1. Which of the following best describes trial balance?

A list of balance on the book

A special account

A list of transactions in the business

A statement of financial position of the business

  1. ---------is the starting point of preparation of financial statements

Journal

Cash book

Ledger

Trial balance

  1. Purchase of machinery was debited to purchase account. This is an example of

Error of principle

Error of omission

Error of commission

All of the above

  1. Goods sold on credit worth Rs 5200 was wrongly entered as Rs 2500. This wil

Affect the agreement of trial balance

Will not affect the agreement of trial balance

Will result in credit balances total in trail balance being lower by 2700

Will result in debit balance total in trail balance being higher by 2700

  1. Goods sold to seema on credit for Rs 40000 and omitted to be posted in seema’s A/c will

Affect the trial balance with higher debit total of Rs 40000

Affect the trial balance with lesser debit total of Rs 40000

Not affect the trial balance

Will affect the trial balance but it will be difficult to quantity the effect of error in monetary terms

  1. Trial balance is a

Statement containing record of all the accounts with credit balances in one column and debit balance in another column

It is a statement of financial position

It is statement of all nominal accounts

It is a statement showing on real and personal accounts

 

Mid Term

  1. All of the following are nominal accounts except.

Rent payable

Electricity expenses

Salary

Interest on investments

  1. Which one is the odd one out

Outstanding salary

Interest payable

Advance from customer

Dividend received

  1. Which one is the odd one out

Paid for insurance of stock

Paid salaries

Received order for goods from customers

Placed order for goods with suppliers and paid advance for the same

  1. 'Accounting' can be regarded as

Data management system

Information system

Administration system

All of the above

  1. ‘Financial Accounting’ majorly caters to the needs of

External stakeholders

Government

Internal stakeholders

Only general public

  1. ‘Accounting’ involves all except

Recording

Classifying

Summarizing

Analysing

  1. If Total Assets are Rs 1,00,000 and Long term liabilities + current liabilities are Rs 75000 then capital will be

Rs 100000

Rs 25000

Rs 175000

None

  1. Cash A/c can never have…….. balance

Nil

Debit balance

Credit balance

Zero balance

  1. ‘Advance paid to supplier' is

Long term liability

Expense

Income

Current asset

  1. Machinery purchased for cash will be recorded in

Purchase book

Journal proper

Cash book

Sales book

  1. ‘Debit Note’ will be issued for

Credit sales

Credit purchases

Return of credit sales

Return of credit purchases

  1. The effect of following transaction ‘ Bank loan taken worth Rs 2,00,000’on the Accounting Equation will be…

Asset side will increase by Rs 200000 and Liability side will increase by Rs 200000

No change in asset and liability side

Only asset side will increase by Rs 200000

Only liability side will increase by Rs 200000

  1. Outstanding salary of Rs 50,000 paid. This transaction will have the following effect

Reduce assets by Rs 50000 and reduce the liabilities by Rs 50000

No change on asset and liability side

Increase the liability by Rs 50000 and increase the assets by Rs 50000

Increase the assets by Rs 50000 and reduce the liabilities by Rs 50000

  1. Purchased Machinery worth Rs 5,00,000 by taking a loan of Rs 4,60,000 and balance paid in cash. The transaction analysis for this transaction will be

Machinery A/c debit by Rs 460000 and Bank loan A/c credit by the same amount

Machinery A/c debit by Rs 500000 and bank loan A/c debit by Rs 460000 and cash A/c credit by Rs 460000

Machinery A/c debit Rs 460000 cash A/c dedit Rs 40000 and bank loan A/c credit Rs 500000

Machinery A/c dedit Rs 500000 cash A/c credit Rs 40000 and bank loan A/c credit Rs 460000

  1. Purchase of goods from Shyam on credit for Rs 25,000 is wrongly posted to Shyam’s A/c as Rs 2500. This error will lead to

Credit side of the trial balance being undercast by Rs 22500

Debit side of the trial balance being undercast by Rs 22500

No effect on debit or credit balance total in trial balance

Credit side of the trial balance being undercast by Rs 25000

 

Module 7

  1. Debentures’  issued by the company are classified as

Long term liability

Current liability

Non current asset

None of these

  1. All except the following are ‘non-operating’ incomes of the business

Interest

Commission received

Revenue from sales

Dividend received

  1. All the following can be classified as ‘Investing Activities’ of the business for preparation of cash flow statements except for

Dividend received

Interest received

Machinery purchased by paying cash

Dividend paid

  1. All the following can be classified as ‘Financing Activities’ of the business for preparation of cash flow statements except for

Term loan repaid

Debentures issued

Preference shares redeemed

Dividend received

  1. ‘Capital Work-in- Progress’ is 

Non current asset

Investment

Current asset

Non current liability

  1. The operating cycle of any business

Can be more than 12 months

Should be of 12 months only

Should be less than 12 months

Could be more/ less or equal to 12 months

  1. Dividends can be distributed out of Capital Reserves. This statement is

True

False

Cannot say as the information given in the statement is insufficient

none

  1. Contingent Liabilities are

Potential liabilities not recorded in the books but shown by way of note

Potential liabilities provided for in the books of accounts

Ascertained liabilities recognized in the books of accounts

None

  1. Profits not distributed as dividends are known as

Profit after tax (PAT)

Gross profit

Retained earnings

Earning before interest and tax (EBIT)

  1. The following statement shows the movement of cash between 2 balance sheet dates

Statement of changes in equity

Cash flow statement

Statement of profit and loss

Balance sheet

 

Module 8

  1. Current ratio helps understand

The liquidity of the business

The profitability of the business

The efficiency in use of assets

All of the above

  1. …………. is the most illiquid current asset

Receivables

Cash and cash equivalents

Inventory

None of these

  1. Higher the Interest coverage ratio…………. will be the flexibility to borrow more in form external debt

Lower

Higher

Lesser

No relation between interest coverage ratio and flexibility to borrow

  1. A right proportion of debt will help increase the returns to the equity shareholders. This statement is

True

False

Partly true

Partly false

  1. The DuPont analysis uses the following 3 parameters to evaluate Return on Equity(ROE)

Liquidity, profitability and leverage

Profitability, leverage and asset turnover

Interest coverage, leverage and profitability

Liquidity, interest coverage and asset turnover

  1. If Debtors turnover ratio is 6 times; assuming 360 days in a year the Average collection period will be

6 months

60 days

6 days

none

  1. A high current ratio together with low quick ratio and a low inventory turnover ratio would generally indicate

Slow moving inventory

Fast moving inventory

A very efficient inverntory management

Does not indicate any thing about inverntory management

  1. A higher average collection period is 

Favourable

Non favourable

Can’t say

Favourable indicator

  1. If net profit margin is 5%; Total Asset turnover ratio is 2 times and Equity multiplier is 2 ; then Return on Equity will be

200%

2%

20%

5%

  1. Price Earning ratio measures

Measures earning capability of an ordinary share

Measures the amount the investors are willing to pay for each rupee of earnings

Measures the dividend return earned by the share

Indicates the % of earning paid out as dividend

 

Module 9

  1. Fixed Cost is a cost

Which do not change in total during a given period inspite of changes in output

Which remains same for each unit of output

Which is partly fixed and partly variable in relation to output

Which changes in total in proportion to changes in relation to output

  1. Sunk Costs are

Relevant for decision making

Not relevant for decision making

Future costs

Opportunity cost

  1. Cost of abnormal wastage is

Charged to product cost

Charged to profit and loss account

Charged partly to the product and partly to profit and loss account

Not charged at all

  1. Overhead refers to

Prime cost

Factory indirect costs

Only indirect expenses

All indirect costs

  1. Allotment of whole item of cost to a cost centre or department is known as

Cost apportionment

Cost absorption

Cost recovery

Cost allocation

  1. Variable Cost is a cost

Which do not change in total during a given period inspite of changes in output

Which remains same for each unit of output

Which is partly fixed and partly variable in relation to output

Which is always a sunk cost

  1. Change in total cost due to change in one unit of production is known as

Fixed cost

Standard cost

Marginal cost

Step cost

  1. Conversion Cost' is

Cost of sales

Prime cost

Total of direct labour and direct expenses

Total of direct labour, direct expenses and production overheads

  1. Which of these is not an objective of cost accounting?

Ascertainment of cost

Assisting shareholders in decision making

Determination of selling price

Cost control and cost reduction

  1. 'Cost Unit' is defined as:

Centre/Department having the responsibility of generating and maximising profits

 A location, person or a department for which costs are ascertained and used for cost control

 Unit of quantity of product or service in relation to which costs may be ascertained or    expressed

 entre/Department having the responsibility of earning adequate returns on investment

 

 

Module 10

  1. Indirect costs can also be described as

Overhead costs

Prime costs

Variable casts

Total costs

  1. Indirect costs which cannot be identified with a particular cost centre are shared out
    between cost centres using

A recovery rate

An absorption rate

A method of apportionment

A method of allocation

  1. The budgeted fixed overheads amounted to Rs 84000 and budgeted and actual production
    amounted to 20,000 units and 24,000 units respectively . This means there will be

An under absorption of Rs 16800

An under absorption of Rs 14000

An over absorption of Rs 16800

An over absorption of Rs 14000

  1. ‘Marginal Cost’ refers to

Variable cost per unit

Fixed cost per unit

Total cost per unit

Additional cost incurred in producing an additional unit of product

  1. Marginal Costing is

Method of costing

Process of allocating costs

Technique of costing relevant for decision making

Process of apportionment of costs

  1. In short run, If the total cost of producing 10 units is Rs 10000 and total cost of producing 11
    units is 11000 then the marginal cost for producing the 11 th unit is

Rs 1000

Rs 11000

Rs 10000

Information not sufficient to ascertain the answer

  1. …………………… is also known as full costing technique

Absorption costing

Marginal costing

Job costing

Process costing

  1. What costs are treated as product costs under variable (marginal) costing?

Only direct costs

Only variable production costs

All fixed costs

All variable costs

  1. The following technique is based on ‘Cost behaviour’ in short run

Absorption costing

Standard costing

Marginal costing

Job costing

  1. Under the following technique there is functional classification of costs

Absorption costing

Standard costing

Marginal costing

Job costing

 

Module 11

  1. A company makes a single product and incurs fixed cost of Rs 30,000 per annum, variable
    cost per unit is Rs 10 and each unit sells for Rs 20. Annual sales demand is for 7000 units.The
    break-even point is

5000 units

7000 units

4000 units

3000 units

  1. A company's breakeven point is 6000 units per annum. The selling price is Rs 100 per unit
    and the variable cost is Rs 40 per unit. What are the company's annual fixed costs?

Rs 800000

Rs 600000

Rs 240000

Rs 360000

  1. A company manufactures a single product which is sold for Rs 60 per unit. The total monthly
    fixed costs are Rs 54000 and it has the Profit/Volume( P/V) ratio of 40%. It plans to
    manufacture and sell 4000 units. What is the margin of safety (in units) for this month?

1750 units

2250 units

4000 units

1500 units

  1. An increase in sales price

Does not affect the break- even point

Lower the net profit

Increases the break even point

Lower the break even point

  1. Fixed cost per unit decreases when

Production volume increases

Production volume decreases

Variable costs per unit decreases

Prime costs per unit decreases

  1. Each of the following would affect the break-even point except a change in the

Number of units sold

Variable cost per unit

Total fixed costs

Sales price per unit

  1. To obtain the break-even point in rupees, total fixed costs are divided by which of the
    following

Variable cost per unit

Fixed cost per unit

Variable cost to sales ratio

Profit- volume (P/V) ratio

  1. Profit under Cost-Volume -Profit Equation is

Contribution earned on actual sales

Contribution earned on break even sales

Contribution earned on margin of safety sales

None of these

  1. Margin of Safety Sales is

Actual sales less break even sales

Actual sales leas projected sales

Break even sales less projected sales

None of these

  1. At Break even point,

Contribution equals fixed costs

Sales equals fixed costs

Variable costs equals fixed costs

Profit equals fixed costs

 

Module 12

  1. The difference between the standard hours for the actual output and the actual hours is

Labour rate variance

Overhead cost bariance

Labour efficiency variance

Overhead volume variance

  1. Setting of pre-determined cost estimates in order to facilitate a comparison with actual
    costs?

Target costing

Product costing

Life cycle costing

Standard costing

  1. For a standard output of 100 kgs, Materials A & B are required, 60 kgs and 40 kgs
    respectively. The Standard Prices are Rs 3/kg and Rs 5/kg respectively. The actual production
    was 1000 kgs and the material consumption of A & B were 625 kgs and 475 kgs respectively.
    The actual prices for A & B were Rs 2/kg and Rs 6/kg respectively. Standard Cost for Actual Production?

Rs 3800

Rs 4100

Rs 4180

Rs 3600

  1. For a standard output of 100 kgs, Materials A & B are required, 60 kgs and 40 kgs
    respectively. The Standard Prices are Rs 3/kg and Rs 5/kg respectively. The actual production
    was 1000 kgs and the material consumption of A & B were 625 kgs and 475 kgs respectively.
    The actual prices for A & B were Rs 2/kg and Rs 6/kg respectively. Actual Cost for actual production?

Rs 3800

Rs 4100

Rs 4180

Rs 3600

  1. An unfavourable material price variances occur because of

Increase in prices of raw materials

Decrease in prices of raw materials

Increase in quantity of raw material consumed

Decrease in quantity of raw material consumed

  1. The Purchase manager would be responsible for

Material price variance

Material cost variance

Material usage variance

All of the above

  1. While computing the Materials Mix Variance?

Mix is kept constant, actual consumption changes are compared

Mix changes are compared, actual consumption is kept constant

Mix and actual consumption are changed commensurately

Mix and actual consumption are both constant

  1. While computing the Materials Yield Variance?

Mix is kept constant, actual consumption changes are compared

Mix changes are compared, actual consumption is kept constant

Mix and actual consumption are changed commensurately

Mix and actual consumption are both constant

 

  1. Material Usage variance is chargeable to

Material storage department

Material purchase department

Production department

Stores department

  1. When calculating variances from standard costs, the difference between actual and standard price multiplied by actual quantity gives a

Total price and quantity variance

Price variance

Volume variance

Mix variance

 

End term

  1. If Margin of Safety is Rs 100000 and Profit/Volume (P/V Ratio) is 20% the profit of the business is

Rs 100000

Rs 200000

Rs 100000

None

  1. If Selling price per unit is Rs 50 and Variable cost per unit is Rs 20; Fixed Costs are Rs 60,000. Break even point in units is

4000 units

1200 units

2000 units

3000 units

  1. If the desired profit is Rs 60000 and Fixed Costs are Rs 50000. Selling price per unit is Rs 100 and Variable cost is Rs 60. The desired sales in units are

2750 units

3000 units

1100 units

1800 units

  1. Higher break-even point indicates greater sensitivity of profits to any change in sales. This statement is

True

False

Depends on other factors

Cannot say as information is not complete

  1. If Margin of safety sales are Rs 100000; P/V Ratio is 20%; Fixed costs are Rs 50,000 therefore total contribution will be

20000

30000

70000

none

  1. Break even point indicates that point of sales in value/volume; at which

There is profit

There is loss

There is no profit no loss

There could or profit or loss

  1. As per Schedule III of Companies Act the classification of assets and liabilities into current and non current is according to

Operating cycle

Nature of the business

Decision of the accountant of the business

There is no such classification under schedule lll

  1. A current ratio of 3 and a quick ratio of 1 indicate

High level of receivables

High level of cash and cash equivalents

High level of inventories

Cannot say

  1. Dupont analysis takes into account the following 3 ratios for determining the return on equity

Net profit margin, total assets turnover and equity multiplier

Gross profit margin, total assets turnover and equity multiplier

Operating profit margin, total assets turnover and equity multiplier

Price earning ratio, total assets turnover and equity multiplier

  1. Financial flexibility available with the business is indicated by

Return on capital employed and total asset turnover

Debt equity ratio and debt service coverage ratio

Net profit margin and total asset turnover ratio

Price earning ratio and dividend yield ratio

  1. The changes in the key financial parameters over a long period of time can be understood using the technique of

Vertical (common size) analysis

Horizontal (comparative) Analysis

Trend analysis

None

  1. Variance Analysis helps in

Cost reduction

Cost control

Cost ascertainment

All of the above

  1. Standard costs are

What costs should be

Actual costs less budgeted costs

Fixed costs

Variable costs

  1. Material mix variance is caused due to difference in

Standard mix of actual input and actual mix for actual input

Standard mix for standard input and standard mix for actual input

Standard mix for standard input and actual mix for actual input

None

  1. If standard price is Rs 10 per kg and standard quantity is 100 kg ; Actual price is Rs 15 per kg and actual quantity is 90 kg the material usage variance will be

Rs 100- adverse

Rs 100- favourable

Rs 350- adverse

Rs 450- adverse