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

Q1.

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

There are 2 correct answers.

- AWithout activity-related planned costs, no target costs can be calculated.
- BFixed plan costs are equal to fixed target costs.
- CVariable target costs are the variable planned costs multiplied by the quotient of planned activity type quantity divided by actual activity type quantity.
- DTarget costs can be calculated for cost centers and profit centers.

Q2.

The output price difference results from the difference between the target activity type price and the plan activity type price and the multiplication of these difference by the actual activity type quantity allocated. Determine whether this statement is true or false.

Choose the correct answer.

- ATrue
- BFalse

Q3.

The target activity type price of an activity type results from the ratio of the activity-related plan costs of the cost center and the planned activity type quantity. Determine whether this statement is true or false.

Choose the correct answer.

- ATrue
- BFalse

Q4.

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

There are 2 correct answers.

- AThe price variance refers to the difference between the planned price and the actual price of the activity type for which the costs were planned.
- BThe 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.
- CThe 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.
- DThe 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.

Q5.

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

There are 2 correct answers.

- AThe input price variance is the difference between planned quantity and target quantity. This difference is then multiplied by the actual price.
- BThe input price variance is the difference between actual quantity and target quantity and multiplied this difference by the actual quantity.
- CThe input quantity variance is the difference between the actual quantity and target quantity. This difference is then multiplied by the plan price.
- DThe input price variance is the difference between the plan price and the actual price. This difference is then multiplied by the actual quantity.

Q6.

Standard costing only works with total plan costs in relation to plan activity quantities. Therefore, plan cost are equal to target cost and variance categories cannot be calculated. Determine whether this statement is true or false.

Choose the correct answer.

- ATrue
- BFalse

Q7.

Flexible standard costing distinguishes between activity-related fixed and variable plan costs. This allows you to differentiate between a fixed and a variable activity price. Determine whether this statement is true or false.

Choose the correct answer.

- ATrue
- BFalse

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