Knowledge quiz

It’s time to put what you’ve learned to the test, get 6 questions right to pass this unit.

Which of the following statements is correct?

Choose the correct answer.

The output price difference is calculated by subtracting the target activity type price from the plan activity type price and then multiplying this difference by the actual activity type quantity allocated.

The output price difference results from adding the target activity type price to the plan activity type price and multiplying this sum by the actual activity type quantity allocated.

The output price difference comes from the difference between the target and plan activity type prices, and this difference is multiplied by the actual activity type quantity allocated.

Which of the following statements are correct?

There are two correct answers.

The fixed price for the activity type of the cost center is determined by dividing the fixed costs by the plan activity quantity.

The variable price for the activity type of the cost center is obtained by dividing the variable costs by the plan activity quantity.

The fixed price for the activity type of the cost center is calculated by multiplying the fixed costs by the plan activity quantity.

Which of the following statements are correct?

There are two correct answers.

The target activity type price is calculated by dividing the activity-related plan costs of the cost center by the planned activity type quantity.

The target activity type price results from multiplying the activity-related plan costs of the cost center by the planned activity type quantity.

The ratio of the activity-related plan costs of the cost center to the planned activity type quantity determines the target activity type price.

Which of the following statements related to input variances in cost centers are correct?

There are two correct answers.

The input price variance is the difference between planned quantity and target quantity. This difference is then multiplied by the actual price.

The input price variance is the difference between actual quantity and target quantity and multiplied this difference by the actual quantity.

The input quantity variance is the difference between the actual quantity and target quantity. This difference is then multiplied by the plan price.

The input price variance is the difference between the plan price and the actual price. This difference is then multiplied by the actual quantity.

Which of the following statements is correct?

Choose the correct answer.

When distinguishing between fixed and variable activity-based costs, planned costs always match target costs, rendering target/actual variance insignificant.

Without differentiating between fixed and variable activity-based costs, planned costs are always identical to target costs, making target/actual variance insignificant.

Differentiating fixed and variable activity-based costs results in planned costs always being different from target costs, giving target/actual variance significant importance.

Which of the following statements related to target costs are correct?

There are two correct answers.

Without activity-related planned costs, no target costs can be calculated.

Fixed plan costs are equal to fixed target costs. 

Variable target costs are the variable planned costs multiplied by the quotient of planned activity type quantity divided by actual activity type quantity.

Target costs can be calculated for cost centers and profit centers. 

Which of the following statements to calculate the input price variance are correct?

There are two correct answers.

The price variance refers to the difference between the planned price and the actual price of the activity type for which the costs were planned.

The planned price for the price variance calculation results from dividing the planned costs and the planned quantity in the cost element planning for the cost center.

The actual price for the price variance results from dividing the actual costs and the actual quantity entered within the General Journal Entry assigned to the cost center.

The price variance refers to the difference between the planned price in the cost element planning and the actual price in the actual cost posting to the cost center and the multiplication of this difference with the planned quantity entered within the cost element planning to the cost center.