ICAEW ACA Certificate Level · Business Insight and Performance
Performance management
6 practice questions, each with the answer and an explanation.
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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.
All 6 questions
- A company bought and used 5,200 kg of material at £4.30 per kg to make 1,000 units. The standard is 5 kg per unit at £4.00 per kg. What is the material price variance?
- Using the same data (5,200 kg used to make 1,000 units, standard 5 kg per unit at £4.00 per kg, actual price £4.30), what is the material usage variance?
- 1,000 units were made using 3,100 labour hours paid at £11.20 per hour. The standard is 3 hours per unit at £11.00 per hour. What are the labour rate and efficiency variances?
- Budgeted sales were 10,000 units at £25, with a standard profit of £6 per unit. Actual sales were 9,500 units at £26. What are the sales price and sales volume variances?
- A purchasing manager switches to a cheaper, lower-quality material. Which pattern of variances is most likely?
- A fixed budget for 10,000 units shows variable costs of £200,000. Actual output was 11,000 units and actual variable costs were £228,000. What is the variance against the flexed budget?
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