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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
downward supply spiral
upward supply spiral
downward demand spiral
upward demand spiral
See Solution
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
of incurring
of sale
of manufacturing
of indirect recording
See Solution
Discuss Question
Answer: Option A. ->
of incurring
Answer:
(a).
of incurring
Question 13.
The production volume variance under variable costing is
must
not a must
non-inventoriable
inventoriable
See Solution
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
standard capacity
actual capacity
practical capacity
theoretical costing
See Solution
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
seasonal capacity utilization
normal capacity utilization
standard capacity utilization
theoretical capacity utilization
See Solution
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
normal utilization
standard utilization
capacity utilization
actual utilization
See Solution
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
distinction
similarities
increase in units
decrease in units
See Solution
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
$1,250
$1,350
$1,450
$1,550
See Solution
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
investment decisions
pricing decisions
product mix decisions
both b and c
See Solution
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
higher income
zero dividends
negative income value
lower income
See Solution
Discuss Question
Answer: Option A. ->
higher income
Answer:
(a).
higher income
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