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Total Questions : 107 | Page 8 of 11 pages
Question 71. In absorption costing, the contribution margin per unit, fixed operating and manufacturing costs are all the dependents of
  1.    profit point
  2.    breakeven point
  3.    production point
  4.    cost point
 Discuss Question
Answer: Option B. -> breakeven point
Answer: (b).breakeven point
Question 72. If the revenues are $25000 and through put contribution is $12000, then direct material cost of goods sold will be
  1.    $57,000
  2.    $37,000
  3.    $47,000
  4.    $13,000
 Discuss Question
Answer: Option D. -> $13,000
Answer: (d).$13,000
Question 73. The change in variable costing in operating income, is calculated by multiplying contribution margin per unit to
  1.    increase in units sold
  2.    change in quantity of sold units
  3.    increase in units manufactured
  4.    decease in units manufactured
 Discuss Question
Answer: Option B. -> change in quantity of sold units
Answer: (b).change in quantity of sold units
Question 74. The product capacity and costing, performance evaluation and regulatory requirements are the purposes of
  1.    denominator level choices
  2.    numerator level choices
  3.    normal level choices
  4.    standard level choices
 Discuss Question
Answer: Option A. -> denominator level choices
Answer: (a).denominator level choices
Question 75. If target operating income is $45000 and contribution margin per unit is $500, then number of units must be sold to earn targeted operating incomes will be
  1.    100 units
  2.    90 units
  3.    110 units
  4.    120 units
 Discuss Question
Answer: Option B. -> 90 units
Answer: (b).90 units
Question 76. The measuring of capacity in terms of normal capacity utilization is also termed as
  1.    output demanded
  2.    input demanded
  3.    capacity supplied
  4.    capacity borrowed
 Discuss Question
Answer: Option A. -> output demanded
Answer: (a).output demanded
Question 77. The factors that affect the demand of the customers include
  1.    cyclical factors
  2.    seasonal factors
  3.    trend factors
  4.    all of above
 Discuss Question
Answer: Option D. -> all of above
Answer: (d).all of above
Question 78. The denominator of the fixed manufacturing cost rate is
  1.    adjusted labor utilization
  2.    unadjusted labor utilization
  3.    material utilization
  4.    capacity utilization
 Discuss Question
Answer: Option D. -> capacity utilization
Answer: (d).capacity utilization
Question 79. The costing method, in which the variable manufacturing costs are treated as inventoriable cost is called
  1.    manufacturing costing
  2.    absorption costing
  3.    variable costing
  4.    labor costing
 Discuss Question
Answer: Option C. -> variable costing
Answer: (c).variable costing
Question 80. If the selling price is $5000, variable manufacturing cost per unit is $1500 and variable marketing cost per unit is $500, then contribution margin per unit will be
  1.    $7,000
  2.    $3,000
  3.    $4,000
  4.    $5,000
 Discuss Question
Answer: Option B. -> $3,000
Answer: (b).$3,000

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