Questions:
1. Define and explain the following terms:
• Fixed overhead cost variance
• Fixed overhead volume variance
• Fixed overhead capacity variance
• Fixed overhead calendar variance
• Fixed overhead efficiency variance.
2. Define and explain the sales variances based on a] profits and b] turnover.
3. Write short notes on investigation of variances and management by exception in connection with standard costing.
4. Recently there have been significant developments in budgetary control and standard costing systems. You are required to discuss, a] five factors which should be kept in mind in deciding whether or not to investigate a variance and b] the importance of recognizing the behavioral aspects in effective system.
5. Explain the meaning, causes and disposal of labour variances.
6. What do you understand by ‘learning curve&? State the uses of learning curve in cost and management accounting.
7. What are the behavioral aspects which should be borne in mind by those who are designing and operating standard costing and budgetary control system?