What Do You Know About Analysis Of Variance? Trivia Quiz
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Questions and Answers
- 1.
Which of these is described as "when actual price is lesser or higher than sales price?"
- A.
Sales quantity variance
- B.
Sales mix variance
- C.
Sales price variance
- D.
Sales volume variance
Correct Answer
C. Sales price varianceExplanation
Sales price variance is described as "when actual price is lesser or higher than sales price". This variance measures the difference between the actual selling price of a product and the budgeted or standard selling price. It helps in evaluating the impact of price changes on the overall sales revenue. A positive sales price variance indicates that the actual selling price is higher than the budgeted price, while a negative variance indicates that the actual selling price is lower.Rate this question:
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- 2.
Sales margin variance is classified into how many parts?
- A.
1
- B.
2
- C.
3
- D.
4
Correct Answer
B. 2Explanation
Sales margin variance is classified into two parts.Rate this question:
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- 3.
Which department takes corrective actions after the analysis of variance?
- A.
Management
- B.
Cost accountancy
- C.
Customers
- D.
None
Correct Answer
A. ManagementExplanation
After the analysis of variance, the department that takes corrective actions is management. Management is responsible for evaluating the results of the analysis and making decisions on how to address any issues or discrepancies that were identified. They have the authority to implement changes and improvements based on the findings of the analysis, ensuring that the necessary steps are taken to rectify any problems and improve overall performance.Rate this question:
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- 4.
Analysis of overhead variance can be done through all of the following methods except...
- A.
Five variance method
- B.
Four variance method
- C.
Three variance method
- D.
Two variance method
Correct Answer
D. Two variance methodExplanation
The analysis of overhead variance can be done through all of the methods mentioned except the Two variance method. The Two variance method only considers the variable overhead variance and the fixed overhead variance, while the other methods (Five variance, Four variance, and Three variance) take into account additional variances such as volume variance, efficiency variance, and spending variance. Therefore, the Two variance method is not comprehensive enough to provide a complete analysis of overhead variance.Rate this question:
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- 5.
Which amongst the following variance is also known as Gang composition variance?
- A.
Labour
- B.
Labour efficiency variance
- C.
Labour mix variance
- D.
Labour cost variance
Correct Answer
C. Labour mix varianceExplanation
Labour mix variance is also known as gang composition variance because it measures the difference between the actual and standard mix of workers in a specific work group or gang. It evaluates the impact of the composition of the workforce on labor costs and productivity. This variance helps to identify if there is an optimal mix of workers in a gang and if any adjustments need to be made to improve efficiency and cost-effectiveness.Rate this question:
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- 6.
When the actual output is more than the budgeted output, then the volume variance is....
- A.
Not impacted
- B.
Negative
- C.
Favorable
- D.
Non-favorable
Correct Answer
C. FavorableExplanation
When the actual output is more than the budgeted output, it means that the company has produced more than what was initially planned. This indicates that the company has been able to achieve higher production levels, which can result in increased sales and revenue. Therefore, the volume variance in this case would be considered favorable as it signifies that the company has exceeded its production targets and potentially generated more profit than expected.Rate this question:
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- 7.
What is another name for labour efficiency variance?
- A.
Labour usage variance
- B.
Labour quantity variance
- C.
Labour time variance
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
Labour efficiency variance is a measure of the difference between the actual labor used and the standard labor that should have been used, in terms of quantity or time. Therefore, all of the given options (labour usage variance, labour quantity variance, and labour time variance) can be considered as another name for labour efficiency variance.Rate this question:
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- 8.
Which of these conditions is responsible for idle time variance?
- A.
Time lost due to unforseen conditions
- B.
Only one grade of labour is used
- C.
Both a and b
- D.
None of the above
Correct Answer
C. Both a and bExplanation
Idle time variance is caused by two conditions: time lost due to unforeseen conditions and the use of only one grade of labor. When there are unforeseen conditions, such as equipment breakdowns or material shortages, it can lead to idle time as work cannot be carried out. Similarly, if only one grade of labor is used, there may be instances where workers are idle due to lack of suitable tasks or skills required for the job. Therefore, both conditions contribute to idle time variance.Rate this question:
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- 9.
What should be calculated if process loss is not given?
- A.
Material yield variance
- B.
Material sub-usage variance
- C.
Time
- D.
All of the above
Correct Answer
B. Material sub-usage varianceExplanation
If the process loss is not given, it means that the amount of material used in the production process is not specified. In this case, the material sub-usage variance should be calculated. This variance measures the difference between the actual amount of material used and the standard amount of material that should have been used. By calculating this variance, a company can assess if there was any excessive or insufficient use of material, which can help identify areas for improvement in the production process.Rate this question:
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- 10.
Another name for Material sub-usage variance is...
- A.
Revised quantity variance
- B.
Material revised usage
- C.
A and B
- D.
None of the above
Correct Answer
C. A and BExplanation
Material sub-usage variance is another term for both revised quantity variance and material revised usage. This means that the correct answer is A and B, as both options are alternative names for the same concept.Rate this question:
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Current Version
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Mar 22, 2023Quiz Edited by
ProProfs Editorial Team -
Dec 19, 2017Quiz Created by
Cripstwick
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