Production Variances Quiz

Quiz covering Implementing Costing

Questions in this quiz

A preview of the 5 questions covered. Start the quiz above to answer them, check your score, and read the explanations.

1. 1

   Which type of production variance represents the difference between the planned cost of an order and the actual cost of the finished goods received?

2. 2

   If an organization uses a Standard Costing system, which variance category captures the difference between the actual quantity of raw materials consumed and the standard quantity allowed for the produced output?

3. 3

   During the period-end closing process, why must a production order be set to a 'Delivered' or 'Technically Completed' status before variance calculation can occur?

4. 4

   A company produces goods in batches. If the actual production volume is lower than the volume used for the original standard cost calculation, which variance will likely be generated due to the under-absorption of fixed overheads?

5. 5

   You observe a significant 'Remaining Variance' on a production order that has been marked as 'Closed'. What is the most likely cause if all material and labor postings are accurate?