CP 202 (A) - Unit V (15-04-20)

Variance Analysis
(Under Guidance of Prof. Amrit Lal Ghosh)

Submitted By
Kumardeep Singha
MBA 2nd Semester
Roll No. 22
Select the appropriate option/s and give justification for your selection.

1. Depreciation for building will be an item of which variance:

   a. Material variance.       b. Labour variance.            c. Overhead variance.        d. All of
the above.     e. None of the above.
Answer to the Question No.1: Depreciation for building is an item of (c) Overhead
Variance because Depreciation is considered as Factory/Manufacturing Overhead.

2. Raw materials purchased will be an item of which variance:

   a. Material cost variance.                    b. Material price variance.    c. Material usage
variance. d. Material mix variance.          e. All of the above.   f. None of the above.        
Answer to the Question No.2: Raw Materials Purchased will be an item of all the
materials stated above i.e. (e) all of the above because the Price of Raw Materials will be
considered as the basis of calculating all the Variances.

3. Wages paid will be an item of which variance:

   a. Overhead variance.     b. Labour variance.    c. Material variance.        d. a & b
options e. All of the above.   f. None of the above.
Answer to the Question No.3: If the Wages is considered as the “Direct Wages” then the
Wages paid is an item of (b) Labour Variance because Wages is primarily associated with
Labour.

If Wages is Considered as “Indirect Wages” then the Wages paid is an item of both
Overhead Variance as well as Labour Variance i.e. option (d) a & b

4. If analyzed and used properly, standard costing, marginal costing, budgetary

control and variance analysis gives the same result:
   a. True.      b. False.       c. Difficult to say.   d. Only can be said after analysis.
Answer to the Question No.4: Though all the techniques are analyzed and used properly,
the result of all the variance will not be the same because all the techniques is used for
separate purpose and basis of calculation is also be different. Thus, Preferred Option is (b)
False.
5. Online exam is better than on campus exam:
   a. True.      b. False.       c. Difficult to say.    d. Not known.  e. PG level online exam is
not good.
Answer to the Question No. 5: (b) False, I prefer Campus Exam over Online Examination
System due to the following reasons:
1. Unlike traditional examination settings that did not allow the examination to have
external materials in the physical space, nothing prevents students from referring to their
course materials during an online examination. Since there is also no direct supervision
during the exam time period, the entire system is reliant on an honor system to prevent
cheating or other malpractice.

2.Online examination system depends on the internet connection along with software If
any of them fails students will not be able to give the exam, and the progress of
examination data might be deleted, if the system off suddenly.