Control Flashcards
1
Q
What does ‘F’ stand for stand for with regards to cost variance?
A
FAVOURABLE
2
Q
When working out sales variance, should you use contribution or selling price to calculate sales volume variance?
A
Contribution
3
Q
When working out sales variance, should you use contribution or selling price to calculate sales price variance?
A
Sales price
4
Q
When working out sales variance, should you use the actual units sold or the budgeted?
A
Use the actual
5
Q
How do you work out sales volume variance?
A
Variance in sales volume x the budgeted unit contribution
6
Q
True or false, an accountant does not need to account for fixed overhead variances when reconciling budgeted contribution to actual contribution.
A
True
Overheads and overheads variances do not feature when calculating contribution
