4.The margin of safety: (A) equals break-even unit sales less actual unit sales (B) shows how far sales can fall below the planned level of activity before losses occur (C) is the sales price minus all the variable expenses (D) is the same as the break-even point
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
4.The margin of safety:
(A) equals break-even unit sales less actual unit sales
(B) shows how far sales can fall below the planned level of activity before losses occur
(C) is the sales price minus all the variable expenses
(D) is the same as the break-even point
5. The
(A) Revenue budget
(B) Operating budget
(C) Financial budget
(D) Budgeted balance sheet
6. Under variable
(A) Direct materials
(B) Variable manufacturing overhead
(C) Fixed manufacturing overhead
(D) Direct labour
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