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Free ACCA Performance Management Practice Questions & Answers

400 exam-style Performance Management questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

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Question 361

The total direct material cost variance equals:

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Question 362

Which of the following would cause a favourable labour efficiency variance?

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Question 363

A variable overhead efficiency variance arises because:

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Question 364

A favourable fixed overhead expenditure variance means:

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Question 365

What does a nil (zero) variance mean?

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Question 366

The sales volume profit variance (under absorption costing) uses standard PROFIT per unit (not contribution). Why?

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Question 367

Which of the following variances would be the primary responsibility of the purchasing manager?

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Question 368

Which variance compares actual revenue with standard revenue for the actual quantity sold?

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Question 369

When would a favourable sales volume variance and an adverse sales price variance occur simultaneously?

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Question 370

The direct labour rate variance is adverse when:

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Question 371

Direct labour efficiency variance is FAVOURABLE when:

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Question 372

Standard: 6 kg at 4/kg = 24/unit. Actual output: 2,000 units. Actual: 13,000 kg purchased and used at 3.80/kg. Calculate material price and usage variances.

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Question 373

Standard: 4 hours at 12/hr per unit. Actual output: 500 units. Actual hours: 1,900; actual pay: 24,700. Calculate rate and efficiency variances.

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Question 374

Budget: FO 100,000, production 5,000 units. Actual: FO 104,000, production 5,500 units. Calculate expenditure and volume variances.

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Question 375

A planning and operational variance split is used. Original standard material: 5 kg at 6/kg. During period, market price rose to 7/kg (revised standard). Actual: 5,200 kg used for 1,000 units at 7.20/kg. Calculate planning and operational variances.

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Question 376

Budget: sales 4,000 units at 80 each. Actual: 4,200 units at 77 each. Standard variable cost 50/unit. Calculate sales price and sales volume contribution variances.

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Question 377

A company uses a standard costing system. Budget profit was 50,000 but actual profit is 38,500. The sales volume variance is 6,000 adverse and the sales price variance is 4,000 favourable. Total cost variances are 9,500 adverse. Reconcile budgeted to actual profit.

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Question 378

Variable overhead: standard rate 4/hr; standard 3 hrs/unit. Actual output 600 units; actual variable overhead 7,800; actual hours 1,900. Calculate variable overhead expenditure and efficiency variances.

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Question 379

Budgeted sales: 3,000 units at 50 each, standard variable cost 30. Actual: 2,800 units sold at 53 each, variable cost 29. Calculate sales price variance, sales volume contribution variance, and variable cost variance.

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Question 380

What might cause an adverse sales volume variance alongside a favourable sales price variance?

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Question 381

A company budgets 1,500 units at standard cost. Actual output: 1,650 units. Fixed overhead budget: 45,000. Actual fixed overhead: 43,500. OAR per unit: 30. Calculate both fixed overhead variances and the net variance.

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Question 382

Direct material: standard 8 kg at 5/kg=40/unit. Actual output: 400 units. Actual: 3,400 kg purchased and used at 4.80/kg. Calculate price and usage variances.

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Question 383

Labour data: Standard 2.5 hrs at 11/hr. Actual output 3,200 units. Actual hours: 7,500. Total wages: 88,500. Calculate rate and efficiency variances.

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Question 384

A company uses standard costing. Budget output: 5,000 units. Fixed overhead: 75,000. OAR=15/unit. Actual output: 4,600 units. Actual FO: 78,000. The fixed overhead volume variance is:

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Question 385

Standard cost card: Materials 3kg at 8=24; Labour 2hrs at 10=20; Variable OAR 2hrs at 4=8; Fixed OAR 2hrs at 6=12. Total=64/unit. Budget: 5,000 units. Calculate the fixed overhead OAR and total budgeted fixed overhead.

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Question 386

When should a variance be investigated?

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Question 387

Standard: 4 hours at 15/hr. Actual output: 1,000 units. Actual hours: 3,800; actual wages: 59,280. Calculate idle time variance if 200 hours were idle (not worked productively).

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Question 388

A favourable labour efficiency variance could be CAUSED BY (identify the most likely cause from an operational perspective):

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Question 389

Which of the following explains why planning variances and operational variances are separated?

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Question 390

Budgeted fixed overhead: 36,000. Budgeted units: 4,000. OAR: 9/unit. Actual units: 3,500. Actual FO: 37,000. What is total fixed overhead variance?

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Free ACCA Performance Management Practice Questions & Answers

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