Cost Accounting

CAPACITY ANALYSIS AND INVENTORY COSTING MCQs

Total Questions : 107

Page 1 of 11 pages
Question 1. The fixed direct manufacturing cost is calculated, by multiplying standard prices for standard quantity of allowed input for actual output in
  1.    input costing
  2.    output costing
  3.    standard costing
  4.    achieved costing
 Discuss Question
Answer is Option C. -> standard costing
Answer: (c).standard costing
Question 2. The fixed manufacturing cost under absorption costing is
  1.    high dividend
  2.    low dividend
  3.    inventoriable
  4.    non-inventoriable
 Discuss Question
Answer is Option D. -> non-inventoriable
Answer: (d).non-inventoriable
Question 3. The number of units, must be sold to earn targeted operating income are calculated by dividing the total fixed cost operating income and
  1.    marginal cost per unit
  2.    variable cost per unit
  3.    fixed cost per unit
  4.    contribution margin per unit
 Discuss Question
Answer is Option D. -> contribution margin per unit
Answer: (d).contribution margin per unit
Question 4. The fixed budgeted manufacturing cost is $45000 and the budgeted production units are 900, then budgeted fixed manufacturing cost per unit will be
  1.    $200
  2.    $150
  3.    $50
  4.    $100
 Discuss Question
Answer is Option C. -> $50
Answer: (c).$50
Question 5. In throughput costing, the variable manufacturing overhead and direct manufacturing labor cost must be treated as
  1.    accrual cost
  2.    incurred cost
  3.    period costs
  4.    setup costs
 Discuss Question
Answer is Option C. -> period costs
Answer: (c).period costs
Question 6. If the budgeted fixed cost is $55000 and budgeted fixed cost is $55 per unit, then budgeted denominator level is
  1.    2500 units
  2.    2000 units
  3.    1000 units
  4.    1500 units
 Discuss Question
Answer is Option C. -> 1000 units
Answer: (c).1000 units
Question 7. The costing method, in which the direct material cost is included in inventoriable cost is called
  1.    manufacturing cost
  2.    super variable costing
  3.    throughput costing
  4.    both b and c
 Discuss Question
Answer is Option D. -> both b and c
Answer: (d).both b and c
Question 8. In an actual quantity of cost allocation used, base is multiplied to an actual fixed overhead rates, to calculate
  1.    fixed manufacturing overhead cost
  2.    variable manufacturing overhead cost
  3.    indirect manufacturing overhead cost
  4.    direct manufacturing overhead cost
 Discuss Question
Answer is Option A. -> fixed manufacturing overhead cost
Answer: (a).fixed manufacturing overhead cost
Question 9. The numerator of the fixed manufacturing cost rate is
  1.    variable manufacturing cost
  2.    budgeted fixed manufacturing cost
  3.    adjusted manufacturing cost
  4.    unadjusted labor cost
 Discuss Question
Answer is Option B. -> budgeted fixed manufacturing cost
Answer: (b).budgeted fixed manufacturing cost
Question 10. In absorption costing, the managers may increase operating income by producing
  1.    more sales
  2.    more inventory units
  3.    less inventory units
  4.    less sales
 Discuss Question
Answer is Option B. -> more inventory units
Answer: (b).more inventory units