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MCQs

Total Questions : 146 | Page 14 of 15 pages
Question 131. The products, divisions and customers are the examples of
  1.    revenue increment
  2.    reciprocal revenue
  3.    revenue allocation
  4.    revenue object
 Discuss Question
Answer: Option D. -> revenue object
Answer: (d).revenue object
Question 132. The method which determines weights of cost allocation by considering cost of each user, as separate entity is known as
  1.    bundled products allocation method
  2.    variable cost allocation method
  3.    stand-alone cost allocation method
  4.    incremental cost allocation method
 Discuss Question
Answer: Option C. -> stand-alone cost allocation method
Answer: (c).stand-alone cost allocation method
Question 133. The difference between actual variable overhead cost and flexible budget variable overhead amount is termed as
  1.    overhead flexible budget variance
  2.    overhead fixed budget variance
  3.    overhead flexible cost variance
  4.    overhead flexible price variance
 Discuss Question
Answer: Option A. -> overhead flexible budget variance
Answer: (a).overhead flexible budget variance
Question 134. The cost allocation base used by an operating manager is classified as
  1.    machine hours
  2.    flexible hours
  3.    variable hours
  4.    fixed hours
 Discuss Question
Answer: Option A. -> machine hours
Answer: (a).machine hours
Question 135. An energy, machine maintenance, indirect materials and engineering support are considered as
  1.    variable overhead cost
  2.    fixed overhead cost
  3.    fixed batch cost
  4.    variable batch cost
 Discuss Question
Answer: Option A. -> variable overhead cost
Answer: (a).variable overhead cost
Question 136. The costing technique, which traces direct costs by multiplying price rate for producing actual outputs is known as
  1.    constant costing
  2.    standard costing
  3.    unit costing
  4.    batch costing
 Discuss Question
Answer: Option B. -> standard costing
Answer: (b).standard costing
Question 137. If the contribution margin percentage is 30%, the selling price is $5000, then the contribution margin per unit will be
  1.    $900
  2.    $1,200
  3.    $1,500
  4.    $1,600
 Discuss Question
Answer: Option C. -> $1,500
Answer: (c).$1,500
Question 138. If the total revenue is $9000, the total variable cost is $2000, then the contribution margin will be
  1.    $11,000
  2.    −$7000
  3.    $4,500
  4.    $7,000
 Discuss Question
Answer: Option D. -> $7,000
Answer: (d).$7,000
Question 139. If the selling price is $5000, the contribution margin per unit is $1000, then the contribution margin percentage will be
  1.    12%
  2.    20%
  3.    5%
  4.    15%
 Discuss Question
Answer: Option B. -> 20%
Answer: (b).20%
Question 140. If the revenue is $15000, the total variable cost is $5000 and the fixed cost $2000 then the operating income will be
  1.    $4,000
  2.    $8,000
  3.    $5,000
  4.    $3,000
 Discuss Question
Answer: Option B. -> $8,000
Answer: (b).$8,000

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