## MCQs

Total Questions : 107 | Page 7 of 11 pages
Question 61. The budgeted fixed manufacturing cost is divided by budgeted fixed manufacturing cost per unit to calculate
1.    fixed material price
2.    variable materials price
3.    fixed production units
4.    budgeted production units
Answer: Option D. -> budgeted production units
Answer: (d).budgeted production units
Question 62. The fixed rate of calculation is based on the
1.    capacity used
2.    capacity available
3.    capacity utilization
4.    downward demand
Answer: Option B. -> capacity available
Question 63. An approach in which restating the amounts, in general ledgers by using actual cost rates, is classified as
1.    unadjusted cost approach
2.    adjusted allocation rate approach
3.    unadjusted allocation approach
4.    adjusted cost approach
Answer: Option B. -> adjusted allocation rate approach
Question 64. If the direct material cost of goods sold is $7500, and through contribution is$15650, then revenues will be
1.    $8,150 2.$23,150
3.    $33,150 4.$13,150
Answer: Option B. -> $23,150 Answer: (b).$23,150
Question 65. The capacity utilization of the business, to satisfy average customer's demand, for current budget period of time is termed as
1.    master budget capacity utilization
2.    finite cost utilization
3.    infinite cost utilization
4.    infinite budget capacity utilization
Answer: Option A. -> master budget capacity utilization
Answer: (a).master budget capacity utilization
Question 66. An approach in which, the over allocated and under allocated is spread in, ending balance of finished goods control, is called
1.    allocation approach
3.    proration approach
Answer: Option C. -> proration approach
Question 67. If the total sales are $250000, the beginning inventory is$25000 and the ending inventory is $25000, then total production would be 1.$250,000
2.    $350,000 3.$300,000
4.    $400,000 Answer: Option C. ->$300,000
Question 68. If the capacity utilization and its cost are fixed in product costing, the capacity management is
1.    for short run
2.    for long run
3.    for one day
4.    for few days
Answer: Option A. -> for short run
Answer: (a).for short run
Question 69. The budgeted fixed manufacturing cost for per unit, which is used to measure per unit cost of supplying is called
1.    indirect labor
2.    capacity
3.    raw material
4.    direct labor
Answer: Option B. -> capacity