MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 107 Mcqs, each offering curated multiple-choice questions to sharpen your Cost Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The difference between master budget capacity and practical capacity is considered as |
| A. | normal used capacity |
| B. | unplanned and unused capacity |
| C. | planned unused capacity |
| D. | unplanned used capacity |
| Answer» D. unplanned used capacity | |
| 2. |
If the beginning inventory is $40000, the total revenues are $225000 and the ending inventory is $30000, then total production would be |
| A. | $95,000 |
| B. | $235,000 |
| C. | $295,000 |
| D. | $195,000 |
| Answer» C. $295,000 | |
| 3. |
If the revenues are $85000 and throughput contribution is $63700, then direct material cost of goods sold will be |
| A. | $21,300 |
| B. | $148,700 |
| C. | $138,700 |
| D. | $118,700 |
| Answer» B. $148,700 | |
| 4. |
In an actual quantity of cost allocation used, base is multiplied to an actual fixed overhead rates, to calculate |
| A. | fixed manufacturing overhead cost |
| B. | variable manufacturing overhead cost |
| C. | indirect manufacturing overhead cost |
| D. | direct manufacturing overhead cost |
| Answer» B. variable manufacturing overhead cost | |
| 5. |
If the target operating income is $84000 and contribution margin per unit is $600, then number of units must be sold to earn targeted operating income, will be |
| A. | 100 units |
| B. | 110 units |
| C. | 120 units |
| D. | 140 units |
| Answer» E. | |
| 6. |
In manufacturing companies, the variable and absorption costing are methods, which are used in |
| A. | recording of liabilities |
| B. | costing of current assets |
| C. | costing of machinery |
| D. | costing of inventories |
| Answer» E. | |
| 7. |
The theoretical capacity of the company considers ideal goal of |
| A. | normal utilization |
| B. | standard utilization |
| C. | capacity utilization |
| D. | actual utilization |
| Answer» D. actual utilization | |
| 8. |
If the contribution margin per unit is $7500, selling price is $1300 and variable manufacturing cost per unit is $1700, then per unit cost of marketing would be |
| A. | $4,500 |
| B. | $5,500 |
| C. | $6,500 |
| D. | $7,500 |
| Answer» B. $5,500 | |
| 9. |
The variance which is included in absorption costing, but not in variable costing is classified as |
| A. | production volume variance |
| B. | cost volume variance |
| C. | profit volume variance |
| D. | fixed cost variance |
| Answer» B. cost volume variance | |
| 10. |
The cost which is excluded from inventoriable costs in variable costing method is called |
| A. | variable factory overheads |
| B. | fixed manufacturing cost |
| C. | variable manufacturing costs |
| D. | fixed factory overheads |
| Answer» C. variable manufacturing costs | |
| 11. |
If the contribution margin per unit is $12300 and the change in sold quantity of units is 50, then change in variable costing operating income will be |
| A. | $315,000 |
| B. | $415,000 |
| C. | $615,000 |
| D. | $515,000 |
| Answer» D. $515,000 | |
| 12. |
The selling price minus variable manufacturing cost per unit, minus variable marketing cost per unit is equal to |
| A. | fixed margin per unit |
| B. | variable margin per unit |
| C. | contribution margin per batch |
| D. | contribution margin per unit |
| Answer» E. | |
| 13. |
In throughput costing, the variable manufacturing overhead and direct manufacturing labor cost must be treated as |
| A. | accrual cost |
| B. | incurred cost |
| C. | period costs |
| D. | setup costs |
| Answer» D. setup costs | |
| 14. |
The fixed direct manufacturing cost is calculated, by multiplying standard prices for standard quantity of allowed input for actual output in |
| A. | input costing |
| B. | output costing |
| C. | standard costing |
| D. | achieved costing |
| Answer» D. achieved costing | |
| 15. |
If the budgeted fixed cost is $55000 and budgeted fixed cost is $55 per unit, then budgeted denominator level is |
| A. | 2500 units |
| B. | 2000 units |
| C. | 1000 units |
| D. | 1500 units |
| Answer» D. 1500 units | |
| 16. |
The costing method, in which the variable manufacturing costs are treated as inventoriable cost is called |
| A. | manufacturing costing |
| B. | absorption costing |
| C. | variable costing |
| D. | labor costing |
| Answer» D. labor costing | |
| 17. |
The capacity level of operations which is less than theoretical capacity is considered as |
| A. | practical capacity |
| B. | theoretical costing |
| C. | standard capacity |
| D. | actual capacity |
| Answer» B. theoretical costing | |
| 18. |
Which is considered as most stable measure of the capacity utilization? |
| A. | spiral capacity |
| B. | supply capacity |
| C. | demand capacity |
| D. | practical capacity |
| Answer» E. | |
| 19. |
In manufacturing companies, the variable costing method is also classified as |
| A. | direct costing |
| B. | indirect costing |
| C. | total costing |
| D. | One factor costing |
| Answer» B. indirect costing | |
| 20. |
If the direct material cost of sold goods is $4500 and revenues are $9000, then the contribution margin would be |
| A. | −$13500 |
| B. | $4,500 |
| C. | −$4500 |
| D. | $13,500 |
| Answer» C. −$4500 | |
| 21. |
If the production is greater than sales, then operating income under absorption costing is |
| A. | higher income |
| B. | zero dividends |
| C. | negative income value |
| D. | lower income |
| Answer» B. zero dividends | |
| 22. |
The number of units, must be sold to earn targeted operating income are calculated by dividing the total fixed cost operating income and |
| A. | marginal cost per unit |
| B. | variable cost per unit |
| C. | fixed cost per unit |
| D. | contribution margin per unit |
| Answer» E. | |
| 23. |
Under absorption costing, the fixed cost of manufacturing is deferred to some |
| A. | present period |
| B. | future period |
| C. | yearly period |
| D. | monthly period |
| Answer» C. yearly period | |
| 24. |
The fixed manufacturing cost under absorption costing is |
| A. | high dividend |
| B. | low dividend |
| C. | inventoriable |
| D. | non-inventoriable |
| Answer» E. | |
| 25. |
If the fixed budgeted manufacturing cost is $35000 and the budgeted production units are 7000, then budgeted fixed manufacturing cost per unit will be |
| A. | $20 |
| B. | $5 |
| C. | $10 |
| D. | $15 |
| Answer» C. $10 | |
| 26. |
The production volume variance under variable costing is |
| A. | must |
| B. | not a must |
| C. | non-inventoriable |
| D. | inventoriable |
| Answer» C. non-inventoriable | |
| 27. |
The capacity of the company, which considers the operating interruptions such as holiday shutdown and maintenance time is called |
| A. | standard capacity |
| B. | actual capacity |
| C. | practical capacity |
| D. | theoretical costing |
| Answer» D. theoretical costing | |
| 28. |
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 |
| A. | $7,000 |
| B. | $3,000 |
| C. | $4,000 |
| D. | $5,000 |
| Answer» C. $4,000 | |
| 29. |
In Variable Costing Method, the fixed manufacturing cost in the calculation period is treated as |
| A. | variable quantity |
| B. | fixed quantity |
| C. | price |
| D. | expense |
| Answer» E. | |
| 30. |
In accounting terms, the term capacity refers to |
| A. | upper limit |
| B. | lower limit |
| C. | zero limit |
| D. | minimal cost |
| Answer» B. lower limit | |
| 31. |
The fixed manufacturing cost under variable costing is |
| A. | inventoriable |
| B. | non-inventoriable |
| C. | high dividend |
| D. | low dividend |
| Answer» C. high dividend | |
| 32. |
The fixed budgeted manufacturing cost is $45000 and the budgeted production units are 900, then budgeted fixed manufacturing cost per unit will be |
| A. | $200 |
| B. | $150 |
| C. | $50 |
| D. | $100 |
| Answer» D. $100 | |
| 33. |
If the budgeted fixed manufacturing cost is $150000 and the per unit cost is $120, then budgeted production units will be |
| A. | $1,250 |
| B. | $1,350 |
| C. | $1,450 |
| D. | $1,550 |
| Answer» B. $1,350 | |
| 34. |
The production volume variance under absorption costing |
| A. | must be inventoriable |
| B. | must exist |
| C. | must not exist |
| D. | non-inventoriable |
| Answer» D. non-inventoriable | |
| 35. |
In super variable costing, all costs other than direct material costs are recorded in the period |
| A. | of incurring |
| B. | of sale |
| C. | of manufacturing |
| D. | of indirect recording |
| Answer» B. of sale | |
| 36. |
The capacity utilization of the business, to satisfy average customer demand over a specific period of time is classified as |
| A. | seasonal capacity utilization |
| B. | normal capacity utilization |
| C. | standard capacity utilization |
| D. | theoretical capacity utilization |
| Answer» C. standard capacity utilization | |
| 37. |
In variable costing, the change in operating income is driven only by changes in |
| A. | quantity of units sold |
| B. | quantity of units manufactured |
| C. | increase in units sold |
| D. | decrease in units sold |
| Answer» B. quantity of units manufactured | |
| 38. |
In variable costing, the variable manufacturing and fixed manufacturing cost focus on |
| A. | distinction |
| B. | similarities |
| C. | increase in units |
| D. | decrease in units |
| Answer» C. increase in units | |
| 39. |
The capacity of the operations in company, which does not consider shutdown periods and interruptions, in operations is considered as |
| A. | normal capacity |
| B. | theoretical costing |
| C. | standard capacity |
| D. | actual capacity |
| Answer» C. standard capacity | |
| 40. |
When prices fall, the decrease in demand for the product when the competitors' prices are not met will be called |
| A. | downward supply spiral |
| B. | upward supply spiral |
| C. | downward demand spiral |
| D. | upward demand spiral |
| Answer» D. upward demand spiral | |
| 41. |
If the production is greater than sales, then operating income under variable costing is |
| A. | negative income value |
| B. | lower income |
| C. | higher income |
| D. | zero dividends |
| Answer» C. higher income | |
| 42. |
The normal costing and standard costing methods are used in decisions such as |
| A. | investment decisions |
| B. | pricing decisions |
| C. | product mix decisions |
| D. | both b and c |
| Answer» E. | |
| 43. |
If the selling price is $2500, variable manufacturing cost per unit is $1000 and variable marketing cost per unit is $500, then contribution margin per unit will be |
| A. | $4,000 |
| B. | $2,500 |
| C. | $1,000 |
| D. | $15,000 |
| Answer» D. $15,000 | |
| 44. |
The standard quantity of input used for achieved output, which is multiplied to standard prices, to calculate variable direct manufacturing cost in |
| A. | output costing |
| B. | standard costing |
| C. | achieved costing |
| D. | input costing |
| Answer» C. achieved costing | |
| 45. |
The throughput contribution is added into direct material cost of goods sold to calculate |
| A. | indirect material |
| B. | revenues |
| C. | expenses |
| D. | direct material |
| Answer» C. expenses | |
| 46. |
If the change in variable costing in operating income is $9000 and contribution margin per unit is $6000, then change in sold units would be |
| A. | $2.5 per unit |
| B. | $1.5 per unit |
| C. | $3.5 per unit |
| D. | $5.5 per unit |
| Answer» C. $3.5 per unit | |
| 47. |
The numerator of the fixed manufacturing cost rate is |
| A. | variable manufacturing cost |
| B. | budgeted fixed manufacturing cost |
| C. | adjusted manufacturing cost |
| D. | unadjusted labor cost |
| Answer» C. adjusted manufacturing cost | |
| 48. |
If the per unit budget per unit cost is $200 and budgeted production units are 350, then fixed budgeted manufacturing costs will be |
| A. | $40,000 |
| B. | $60,000 |
| C. | $70,000 |
| D. | $50,000 |
| Answer» D. $50,000 | |
| 49. |
In absorption costing, an effect on cost volume profit relationship is driven by |
| A. | unit level of production |
| B. | unit level of sales |
| C. | chosen denominator level |
| D. | all of above |
| Answer» E. | |
| 50. |
The costing method, in which the direct material cost is included in inventoriable cost is called |
| A. | manufacturing cost |
| B. | super variable costing |
| C. | throughput costing |
| D. | both b and c |
| Answer» E. | |