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MCQs

Total Questions : 107 | Page 2 of 11 pages
Question 11. When prices fall, the decrease in demand for the product when the competitors' prices are not met will be called
  1.    downward supply spiral
  2.    upward supply spiral
  3.    downward demand spiral
  4.    upward demand spiral
 Discuss Question
Answer: Option C. -> downward demand spiral
Answer: (c).downward demand spiral
Question 12. In super variable costing, all costs other than direct material costs are recorded in the period
  1.    of incurring
  2.    of sale
  3.    of manufacturing
  4.    of indirect recording
 Discuss Question
Answer: Option A. -> of incurring
Answer: (a).of incurring
Question 13. The production volume variance under variable costing is
  1.    must
  2.    not a must
  3.    non-inventoriable
  4.    inventoriable
 Discuss Question
Answer: Option B. -> not a must
Answer: (b).not a must
Question 14. The capacity of the company, which considers the operating interruptions such as holiday shutdown and maintenance time is called
  1.    standard capacity
  2.    actual capacity
  3.    practical capacity
  4.    theoretical costing
 Discuss Question
Answer: Option C. -> practical capacity
Answer: (c).practical capacity
Question 15. The capacity utilization of the business, to satisfy average customer demand over a specific period of time is classified as
  1.    seasonal capacity utilization
  2.    normal capacity utilization
  3.    standard capacity utilization
  4.    theoretical capacity utilization
 Discuss Question
Answer: Option B. -> normal capacity utilization
Answer: (b).normal capacity utilization
Question 16. The theoretical capacity of the company considers ideal goal of
  1.    normal utilization
  2.    standard utilization
  3.    capacity utilization
  4.    actual utilization
 Discuss Question
Answer: Option C. -> capacity utilization
Answer: (c).capacity utilization
Question 17. In variable costing, the variable manufacturing and fixed manufacturing cost focus on
  1.    distinction
  2.    similarities
  3.    increase in units
  4.    decrease in units
 Discuss Question
Answer: Option B. -> similarities
Answer: (b).similarities
Question 18. If the budgeted fixed manufacturing cost is $150000 and the per unit cost is $120, then budgeted production units will be
  1.    $1,250
  2.    $1,350
  3.    $1,450
  4.    $1,550
 Discuss Question
Answer: Option A. -> $1,250
Answer: (a).$1,250
Question 19. The normal costing and standard costing methods are used in decisions such as
  1.    investment decisions
  2.    pricing decisions
  3.    product mix decisions
  4.    both b and c
 Discuss Question
Answer: Option D. -> both b and c
Answer: (d).both b and c
Question 20. If the production is greater than sales, then operating income under absorption costing is
  1.    higher income
  2.    zero dividends
  3.    negative income value
  4.    lower income
 Discuss Question
Answer: Option A. -> higher income
Answer: (a).higher income

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