Which of the following is true about revenue variances

Standard Costing and Variance Analysis: Conceptual Quiz

Question 1
A standard is informed by the budget but is calculated at a more aggregate level.  

True


False


Question 2
Variance analysis facilitates management by exception.


True


False


Question 3
A static cost budget presents how much a company should have spent given the planned level of production.


True


False


Question 4
Which of the following is true regarding a favorable variance?


All else equal, actual net income is less than budgeted net income.


All else equal, actual net income is greater than budgeted net income.


It reflects a desirable scenario.


It is more important than unfavorable variances.


Question 5
Which of the following is true regarding cost variances?


All costs can exhibit spending, efficiency, and activity variances.


Fixed overhead costs exhibit efficiency variances.


Variable costs can exhibit spending, efficiency, and activity variances.


Materials costs have spending variances; labor costs have efficiency variances; overhead costs have activity variances.


Question 6
Fixed cost variances include efficiency variances.


True


False


Question 7
Revenue variances are classified as favorable or unfavorable via different reasoning than cost variances.  


True


False


Question 8
Which of the following are revenue variances? (For this Question no. 8 select more then one correct answers)


Sales efficiency variance


Sales price variance


Sales mix variance


Sales input variance

Which of the following statements about variances is false?

  1. If actual direct material price is less than budgeted, the result is an unfavorable materials price variance.

  2. If actual sales price is less than budgeted, the result is an unfavorable revenue variance.

  3. If actual sales volume is less than budgeted, the result is an unfavorable activity variance.

  4. If actual profit is less than budgeted, the result is an unfavorable total profit variance.

  5. None of the above is true.

Which of the following is true about revenue variances

Which of the following is true about revenue variances

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A: Standard cost: In the accounting records, the term standard cost refers to the practice of…

Q: Each of the following statements is correct regarding overhead variances except: a. Actual overhead…

A: Statements about overhead variances are correct that are: Actual overhead greater than applied…

Q: Each of the following statements is correct regarding overhead variances except: Actual overhead…

A: Click to see the answer

Q: When management uses variance reports to evaluate cost control, they look into which of the…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: To reconcile budgeted profit to actual profit under marginal costing, which variances must be…

A: Marginal Costing is a method of costing, where the marginal cost, the variable cost is charged to…

Q: The budgeted variable selling, and administrative expense is calculated by multiplying the budgeted…

A: Answer: False, The budgeted selling Variable expense is computed on the Budgeted sale units but the…

Q: Which of the following statements is false?   Standard costs (e.g., how much should be paid for…

A: Statement 1 is true, because standard costs are considered as benchmarks for measuring performance.

Q: Which of the following variances cannot occur together during the same accounting period? Select…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following statements is incorrect with regards to production variances?   Select…

A: Production variance refers to form of measure which is used to compute the cost of production of…

Q: Gauging the Favorableness of Variances When variances occur, they are described as being either…

A: Given information Actual cost for actual hours of employees = $4,300,000 Budgeted cost for actual…

Q: Gauging the Favorableness of Variances When variances occur, they are described as being either…

A: Direct Labor Rate Variance=Budgeted cost for the actual hours worked-Actual cost for the actual…

Q: Which of the following is NOT true?     Multiple Choice   An activity variances describes the…

A: Activity Variance The term which are used in the costing techniques which describes as difference…

Q: In regard to the Sales-Volume Variance, which of the following statements is false. A) The…

A: Flexible budget variance is the difference between an actual result and a flexible-budget amount.…

Q: The differences between actual and budgeted figures are known as type your answer... 2 Which of the…

A: 1. The difference between actual figures and budgeted figures are knows as Variance.

Q: In gross profit analysis, a favorable cost of sales variance that includes an unfavorable cost…

A: A favorable variance happens when the cost to produce is less than the budgeted cost. It means a…

Q: If production is more or less than the standard volume, is it possible that no flexible-budget or…

A: Definition: Production-Volume Variance: It reports that amount which is the result of the…

Q: Which of the following is true?       Multiple Choice   If a company has an unfavorable spending…

A: The variance is the difference between the actual data and standard output of the production.

Q: Which of the following statements is true of performance​ reporting?   A. Responsibility reports…

A: Performance reporting refers to a process of reporting the performance of any particular thing. It…

Q: TRUE OR FALSE When actual production volume is less than expected volume, the production volume…

A: Fixed factory overhead volume variance = (Budgeted hours  -Standard hours required for actual…

Q: Which type of variance causes operating income to be greater than the budgeted operating income?…

A: The variance causes the operating income to be greater than the budgeted operating income is:

Q: Which of the following statements is false? * The sum of the sales volume variance and cost volume…

A: Sales volume variance Analysis Sales volume variance analysis which can be determine to know the…

Q: The variance that arises solely because the actual units sold differs from the budgeted units to be…

A: The variance that arises solely because the actual units sold differ from the budgeted units to be…

Q: Which of the following would result to a favorable volume variance?   a)There is a favorable…

A: Favorable spending variance means when there is a cost to produce something which is less than the…

Q: Material price variances are often isolated at the time materials are purchased, rather than when…

A: A variance is the difference between standard and actual performance. In case of expense, variance…

Q: Help question 26

A: False. Price variance is the difference between the Standard price of the input and actual price of…

Q: nt(s) is/are true regarding standard costs and cost variances? i. they can be…

A: Standard costing and Cost variance are inter linked to each other as one helps in evaluation…

Q: Which of the following analysis of variances is true? a. Unfavorable sales volume variance means…

A: In the given case the statement is True.... A favorable volume variance means that the number of…

Q: what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter…

A: Direct material variances:   The difference between the actual material cost per unit and the…

Q: Which of the following statements is false? * The quantity factor refers to the change in the number…

A: the net gross profit variance can be computed by adding the sales price variance and the cost price…

Q: The Provence Company has the following flexible budget variances: unfavorable direct material price…

A: First we understand what is unfavorable direct material price variance and favorable direct material…

Q: Which of the following analysis of variances is true? * A unfavorable sales price variance under the…

A: A favourable volume variance means the number of units sold as per budget is greater than the nber…

Q: verify whether variances favorable of unfavorable: budgeted cost at actual volue would be 25344…

A: Wage Rate Variance = (Budgeted Rate-Actual rate) x Actual Hours Labor Efficiency Variance =…

Q: Required: Prepare a profit variance analysis.. (Indicate the effect of each variance by selecting…

A: Master budget: Master budget can be defined as the overview or the combination of all the smaller…

Q: Which of the following statements about variable overhead variances is correct?     Variable…

A: Variable Overheads include those costs which are not classified as direct product cost like direct…

Q: hich of the following statements is true?   A budget reconciliation report shows the difference…

A: Flexible budget is a variable budget where revenues and costs are estimated based on actual output…

Q: Which of the following statements is false? a. The sum of the cost price variance and cost volume…

A: In general terms, Variance refers to the spread between the numbers or the relationship existing. It…

Q: Which of the following is a possible cause of an unfavorable material price variance? A. purchasing…

A: Material price variance exists when the actual purchase price is different from the standard…

Q: Why Fixed Overhead Volume Variance is said to be a favorable variance when the actual output is more…

A: Fixed overhead volume variance is the difference between Applied fixed overhead and Budgeted Fixed…

Q: Required: Prepare a profit variance analysis. (Indicate the effect of each variance by selecting "F"…

A: Manufacturing Variances = Actual cost - Flexible Budget cost Sales Price Variance = Actual Sales -…

Q: Which of the following statements is false? a. The sum of the sales volume variance and cost volume…

A: Statement (a) is false among all four because- The sum of sales quantity variance and sales mix…

Q: An unfavorable activity variance for revenue indicates that activity was less than expected when the…

A: Solution: True. An unfavorable activity variance for Revenue indicated that activity was less than…

Q: Which of the following would result to a favorable volume variance? Production is equal to sales…

A: Solution Concept Volume variance      : This variance occurs when there is difference between…

Q: company using direct costing in its performance evaluation would normally include the following…

A: A Company using direct costing in its performance evaluation would normally include the following…

Q: 1) When is the labor variance unfavorable? a) When the actual price is greater than the standard…

A: AN UNFAVORABLE LABOR VARIANCE MEANS THAT YOU HAVE PAID WORKER'S MORE THAN ANTICIPATED AND THIS IS…

Q: Would a production manager be equally responsible for anunfavorable materials price variance and an…

A: Click to see the answer

Q: Determine the direct materials quantity and direct labor time variances. Round your per unit…

A: To calculate variance direct materials quantity the following formula can be used Statement finding…

Q: Explain the total sales volume variance for a period.  How can this total variance be decomposed?

A: Click to see the answer

Q: Explain the total sales volume variance for a period. How can this total variance be decomposed?

A: Sales volume variance: Sales volume variance is the measure of change in profit due to the…

Q: Lexi in evaluating her efforts to control production costs. (If variance is zero, select "Not…

A: Hi student Since there are multiple subparts, we will answer only first three suboarts.

Q: What effect, if any, would you expect poor-quality materials to have on direct labor variances?

A: Direct labour variance mainly arises due to the differences in the actual and budgeted rates of wage…

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    What is revenue variances?

    What are Revenue Variances? Revenue variances are used to measure the difference between expected and actual sales. This information is needed to determine the success of an organization's selling activities and the perceived attractiveness of its products.

    What is revenue variance in accounting?

    Revenue Variance Analysis is used to measure differences between actual sales and expected sales, based on sales volume metrics, sales mix metrics, and contribution margin calculations.

    Which of the following statements is true the revenue variance will usually equal zero?

    The revenue variance will equal zero if the actual revenue earned equals the revenue expected for the actual level of activity. The revenue variance will be favorable if the revenue in the flexible budget exceeds the revenue in the planning budget.

    What are revenue and spending variances?

    Revenue and spending variances (sometimes called flexible budget variances) are the differences between the flexible budget and the actual results and are caused by differences in the revenue per unit, cost per unit and/or the amount of cost incurred.