1. In a standard cost system the denominator level concept is used to:

a. determine variance in variable indirect cost budget

b. calculate variable cost per unit of product

c. calculate fixed cost per unit of product

d. calculate flexible budget variance

2. Which of the following is NOT an example of a source document?

a. Materials request

b. Job ticket (labor time record)

c. Job order sheet

d. Static budget

3. Which of the following is one of the controversial points with indirect costs of manufacturing?

a. They are easy to link and measure with the product

b. They generally have a single cost cause, which makes it easy to calculate a rate of indirect cost allocation

c. There are fluctuations in the level of activity as well as in the indirect cost itself

d. At the time of requiring computing an indirect cost rate, one has all the information needed to do it