MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
If the direct material cost of goods sold is $7500, and through contribution is $15650, then revenues will be |
| A. | $8,150 |
| B. | $23,150 |
| C. | $33,150 |
| D. | $13,150 |
| Answer» C. $33,150 | |
| 2. |
The capacity utilization of the business, to satisfy average customer's demand, for current budget period of time is termed as |
| A. | master budget capacity utilization |
| B. | finite cost utilization |
| C. | infinite cost utilization |
| D. | infinite budget capacity utilization |
| Answer» B. finite cost utilization | |
| 3. |
Under absorption costing, the magnitude for favorable volume production variance is affected by the choice of |
| A. | unplanned level |
| B. | budgeting level |
| C. | numerator level |
| D. | denominator level |
| Answer» E. | |
| 4. |
An approach used for choosing capacity level, having no beginning inventory, is classified as |
| A. | write off variance approach |
| B. | write in variance approach |
| C. | adjusted variance approach |
| D. | unadjusted variance approach |
| Answer» B. write in variance approach | |
| 5. |
If the production is less than sales so, an operating income under absorption costing will be called |
| A. | higher income |
| B. | zero dividends |
| C. | negative income value |
| D. | lower income |
| Answer» E. | |
| 6. |
If the budgeted fixed cost is $26000, per unit budgeted denominator level is 1300 units, then budgeted fixed cost will be |
| A. | $50 |
| B. | $30 |
| C. | $20 |
| D. | $40 |
| Answer» D. $40 | |
| 7. |
If the inventory level decreases then operating income, under variable costing, will be reported |
| A. | more |
| B. | less |
| C. | zero |
| D. | none of above |
| Answer» B. less | |