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Capacity Analysis and Inventory Costing Online Exam Quiz

Important questions about Capacity Analysis and Inventory Costing. Capacity Analysis and Inventory Costing MCQ questions with answers. Capacity Analysis and Inventory Costing exam questions and answers for students and interviews.

Under absorption costing, the magnitude for favorable volume production variance is affected by the choice of

Options

A : a. unplanned level

B : b. budgeting level

C : c. numerator level

D : d. denominator level

An approach used for choosing capacity level, having no beginning inventory, is classified as

Options

A : a. write off variance approach

B : b. write in variance approach

C : c. adjusted variance approach

D : d. unadjusted variance approach

If the budgeted fixed cost is $26000, per unit budgeted denominator level is 1300 units, then budgeted fixed cost will be

Options

A : a. $50

B : b. $30

C : c. $20

D : d. $40

If the production is less than sales so, an operating income under absorption costing will be called

Options

A : a. higher income

B : b. zero dividends

C : c. negative income value

D : d. lower income

If the inventory level decreases then operating income, under variable costing, will be reported

Options

A : a. more

B : b. less

C : c. zero

D : d. none of above

If target operating income is $38000, contribution margin per unit is $400, then the number of units must be sold to earn targeted operating income will be

Options

A : a. 65 units

B : b. 75 units

C : c. 95 units

D : d. 85 units

The managers using capacity planning do not make

Options

A : a. pricing decisions

B : b. marketing decisions

C : c. financial decisions

D : d. cost budgeting decisions

The budgeted fixed manufacturing cost is divided by budgeted fixed manufacturing cost per unit to calculate

Options

A : a. fixed material price

B : b. variable materials price

C : c. fixed production units

D : d. budgeted production units

The fixed rate of calculation is based on the

Options

A : a. capacity used

B : b. capacity available

C : c. capacity utilization

D : d. downward demand

If the contribution margin per unit is $5000, the selling price is $1500 and the variable manufacturing cost per unit is $1200, then per unit cost of marketing will be

Options

A : a. $4,200

B : b. $2,300

C : c. $7,700

D : d. $6,700

An approach in which restating the amounts, in general ledgers by using actual cost rates, is classified as

Options

A : a. unadjusted cost approach

B : b. adjusted allocation rate approach

C : c. unadjusted allocation approach

D : d. adjusted cost approach

If the direct material cost of goods sold is $7500, and through contribution is $15650, then revenues will be

Options

A : a. $8,150

B : b. $23,150

C : c. $33,150

D : d. $13,150

The capacity utilization of the business, to satisfy average customer's demand, for current budget period of time is termed as

Options

A : a. master budget capacity utilization

B : b. finite cost utilization

C : c. infinite cost utilization

D : d. infinite budget capacity utilization

If the total sales are $250000, the beginning inventory is $25000 and the ending inventory is $25000, then total production would be

Options

A : a. $250,000

B : b. $350,000

C : c. $300,000

D : d. $400,000

An approach in which, the over allocated and under allocated is spread in, ending balance of finished goods control, is called

Options

A : a. allocation approach

B : b. unadjusted approach

C : c. proration approach

D : d. adjusted approach

If the capacity utilization and its cost are fixed in product costing, the capacity management is

Options

A : a. for short run

B : b. for long run

C : c. for one day

D : d. for few days

The budgeted fixed manufacturing cost for per unit, which is used to measure per unit cost of supplying is called

Options

A : a. indirect labor

B : b. capacity

C : c. raw material

D : d. direct labor

If the revenues are $25000 and through put contribution is $12000, then direct material cost of goods sold will be

Options

A : a. $57,000

B : b. $37,000

C : c. $47,000

D : d. $13,000

In absorption costing, the contribution margin per unit, fixed operating and manufacturing costs are all the dependents of

Options

A : a. profit point

B : b. breakeven point

C : c. production point

D : d. cost point

In actual costing, an actual quantity of used inputs are multiplied with actual prices to calculate

Options

A : a. fixed direct manufacturing cost

B : b. variable direct manufacturing cost

C : c. fixed indirect manufacturing cost

D : d. variable indirect manufacturing cost

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