1 June 2015 MCQs

Dear John,

Hello!

In 1 June 2015 paper’s MCQ Section.

Question 14:
I have some confusions with planning and operating variances. Should I assume that in planning variance, I have to treat revised budget is the ‘actual’ performance. If original is better, then it’s a adverse variance and vice versa?
For operating variance, I should assume that the revised budget is the ‘budgeted’ standard, if actual performance is better, then it’s a favourable variance, and vice versa?

Question 15:
I can’t understand the implication of sales quantity contribution variance so could you please explain this to me?

What I did: I calculated all contributions of A and B under standard and the actual performance.

For A (14,200-15,840) X 12
For B (12,500-10560) X 13
Finally, I cannot find any answer which matches my outcome. What’s wrong with my approach?

Question 16:
Could you please tell me the implication of higher learning rate? As learning index is Lg LR/lg 2, when learning rate is higher, the index should be bigger, so the unit production time should level up. Should I assume the higher learning rate denotes the inefficiency of labour or lack of labour?

Question 17:

What are the differences of environment-related costs and environment-driven costs?
I could recall another question asked in BPP Question Bank: Environmental accounting could identify but not be able to quantify (allocate) the cost? Is this the case?

Thank you so much!

With regards,