MCQOPTIONS
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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.
| 51. |
If the budgeted fixed cost is $48000 and per unit budgeted denominator level is 1200 units, then budgeted fixed cost would be |
| A. | $50 |
| B. | $45 |
| C. | $55 |
| D. | $40 |
| Answer» E. | |
| 52. |
If the per unit budgeted per unit cost is $165 and budgeted production units are 400 then fixed budgeted manufacturing costs will be |
| A. | $36,000 |
| B. | $66,000 |
| C. | $56,000 |
| D. | $46,000 |
| Answer» C. $56,000 | |
| 53. |
The denominator of the fixed manufacturing cost rate is |
| A. | adjusted labor utilization |
| B. | unadjusted labor utilization |
| C. | material utilization |
| D. | capacity utilization |
| Answer» E. | |
| 54. |
In variable costing, an effect on cost volume profit relationship is driven by |
| A. | unit level of sales |
| B. | unit level of production |
| C. | unit level of inventory |
| D. | unit dividends |
| Answer» B. unit level of production | |
| 55. |
If the contribution margin per unit is $16700 and the change in sold quantity of units is 20, then change in variable costing operating income will be |
| A. | 635 units |
| B. | 735 units |
| C. | 835 units |
| D. | 334 units |
| Answer» E. | |
| 56. |
The numerator of fixed manufacturing rate can be reduced by using |
| A. | write ups |
| B. | write downs |
| C. | upward write up |
| D. | downward write down |
| Answer» B. write downs | |
| 57. |
In absorption costing, the managers may increase operating income by producing |
| A. | more sales |
| B. | more inventory units |
| C. | less inventory units |
| D. | less sales |
| Answer» C. less inventory units | |
| 58. |
The method of inventory costing, in which all variable and fixed manufacturing cost is considered as inventoriable cost can be termed as |
| A. | absorption costing |
| B. | variable costing |
| C. | fixed costing |
| D. | manufacturing cost |
| Answer» B. variable costing | |
| 59. |
Throughout the period costs, costing methods are treated as |
| A. | manufacturing in period |
| B. | expenses of period |
| C. | incurred in period |
| D. | accrual in period |
| Answer» C. incurred in period | |
| 60. |
The recalculation of demand can be avoided, by using practical capacity while calculation of budgeted fixed manufacturing per unit cost as |
| A. | denominator |
| B. | numerator |
| C. | multiplier |
| D. | equalizer |
| Answer» B. numerator | |
| 61. |
The difference between absorption and variable costing is the accountability of |
| A. | direct overhead |
| B. | indirect overhead cost |
| C. | fixed manufacturing cost |
| D. | variable manufacturing cost |
| Answer» D. variable manufacturing cost | |
| 62. |
If the budgeted fixed manufacturing cost is $124000 and the per unit cost is $124, then budgeted production units can be |
| A. | $4,000 |
| B. | $1,000 |
| C. | $2,000 |
| D. | $3,000 |
| Answer» C. $2,000 | |
| 63. |
If the capacity utilization and its cost are fixed in product costing, the capacity management is |
| A. | for short run |
| B. | for long run |
| C. | for one day |
| D. | for few days |
| Answer» B. for long run | |
| 64. |
The budgeted fixed manufacturing cost for per unit, which is used to measure per unit cost of supplying is called |
| A. | indirect labor |
| B. | capacity |
| C. | raw material |
| D. | direct labor |
| Answer» C. raw material | |
| 65. |
In actual costing, an actual quantity of used inputs are multiplied with actual prices to calculate |
| A. | fixed direct manufacturing cost |
| B. | variable direct manufacturing cost |
| C. | fixed indirect manufacturing cost |
| D. | variable indirect manufacturing cost |
| Answer» B. variable direct manufacturing cost | |
| 66. |
In absorption costing, the contribution margin per unit, fixed operating and manufacturing costs are all the dependents of |
| A. | profit point |
| B. | breakeven point |
| C. | production point |
| D. | cost point |
| Answer» C. production point | |
| 67. |
If the revenues are $25000 and through put contribution is $12000, then direct material cost of goods sold will be |
| A. | $57,000 |
| B. | $37,000 |
| C. | $47,000 |
| D. | $13,000 |
| Answer» E. | |
| 68. |
If the change in variable costing in operating income is $18000 and contribution margin per unit is $9000, then change in sold units will be |
| A. | $2 per unit |
| B. | $3 per unit |
| C. | $4 per unit |
| D. | $5 per unit |
| Answer» B. $3 per unit | |
| 69. |
If the production is less than sales, then operating income under variable costing is |
| A. | negative income value |
| B. | lower income |
| C. | higher income |
| D. | zero dividends |
| Answer» D. zero dividends | |
| 70. |
An average figure, for particular period which provides zero meaning feedback to marketing manager, is termed as |
| A. | normal capacity utilization |
| B. | abnormal capacity utilization |
| C. | standard capacity utilization |
| D. | infinite capacity utilization |
| Answer» B. abnormal capacity utilization | |
| 71. |
To calculate budgeted fixed manufacturing cost per unit, the fixed budgeted manufacturing costs are divided to |
| A. | budgeted production units |
| B. | indirect production units |
| C. | input material units |
| D. | accrued production units |
| Answer» B. indirect production units | |
| 72. |
The revenue and throughput contribution is subtracted to calculate the |
| A. | indirect labor cost of goods sold |
| B. | direct labor cost of goods sold |
| C. | direct material cost of goods sold |
| D. | indirect material cost of goods sold |
| Answer» D. indirect material cost of goods sold | |
| 73. |
If the total sales are $355000, the beginning inventory is $23000 and the ending inventory is $15000, then total production would be |
| A. | $363,000 |
| B. | $463,000 |
| C. | $393,000 |
| D. | $493,000 |
| Answer» B. $463,000 | |
| 74. |
Another name of super-variable costing is |
| A. | throughput costing |
| B. | unit costing |
| C. | batch costing |
| D. | manufacturing costing |
| Answer» B. unit costing | |
| 75. |
Direct material cost of sold goods is subtracted from revenues to calculate |
| A. | accrual contribution |
| B. | indirect contribution |
| C. | throughput contribution |
| D. | direct contribution |
| Answer» D. direct contribution | |
| 76. |
An income statement in absorption costing follows the format of |
| A. | inventory margin |
| B. | sales margin |
| C. | Gross margin |
| D. | production margin |
| Answer» D. production margin | |
| 77. |
The standard cost of allocation base, allowed to output achieved, is multiplied to standard variable overhead rate is to calculate |
| A. | indirect manufacturing overhead cost |
| B. | direct manufacturing overhead cost |
| C. | fixed manufacturing overhead cost |
| D. | variable manufacturing overhead cost |
| Answer» E. | |
| 78. |
An actual quantity of input use is multiplied to actual prices, to calculate direct variable manufacturing cost in |
| A. | actual costing method |
| B. | normal costing method |
| C. | direct costing method |
| D. | indirect costing method |
| Answer» B. normal costing method | |
| 79. |
In two of the methods of costing, the operating income will be different if the |
| A. | fixed cost does not change |
| B. | inventory changes |
| C. | inventory does not change |
| D. | fixed cost changes |
| Answer» C. inventory does not change | |
| 80. |
The total capacity of producing output, while operating at full efficiency is known as |
| A. | standard capacity |
| B. | actual capacity |
| C. | normal capacity |
| D. | theoretical costing |
| Answer» E. | |
| 81. |
The budgeted variable overhead rate, is multiplied to an actual quantity of allocation base, is to calculate variable manufacturing cost of overheads in |
| A. | direct costing method |
| B. | indirect costing method |
| C. | actual costing method |
| D. | normal costing method |
| Answer» E. | |
| 82. |
In normal costing, an actual quantity of cost allocation used base is multiplied to budgeted fixed overhead rates to calculate the |
| A. | indirect manufacturing overhead cost |
| B. | direct manufacturing overhead cost |
| C. | fixed manufacturing overhead cost |
| D. | variable manufacturing overhead cost |
| Answer» D. variable manufacturing overhead cost | |
| 83. |
The direct material cost of goods sold is $8450, throughput contribution is $18650 then the revenues will be equal to |
| A. | $27,100 |
| B. | $37,100 |
| C. | $10,200 |
| D. | $12,200 |
| Answer» B. $37,100 | |
| 84. |
If the fixed manufacturing cost expenses are under variable costing and are not expensed in absorption costing, it is resulting in |
| A. | production exceeds breakeven sales |
| B. | breakeven sales exceeds production |
| C. | price exceeds cost |
| D. | cost exceeds price |
| Answer» B. breakeven sales exceeds production | |
| 85. |
If the budgeted fixed cost is $40000 and budgeted fixed cost is $16 per unit, then budgeted denominator level will be |
| A. | 3500 units |
| B. | 2500 units |
| C. | 3900 units |
| D. | 4900 units |
| Answer» C. 3900 units | |
| 86. |
The measuring of capacity levels, in terms of practical and theoretical capacity is classified as |
| A. | capacity write down |
| B. | capacity write up |
| C. | capacity supplied |
| D. | capacity borrowed |
| Answer» D. capacity borrowed | |
| 87. |
The cost of manufactured goods is added into beginning inventory, and the amount equal to cost of sold goods are added into |
| A. | minus beginning inventory |
| B. | minus ending inventory |
| C. | plus ending inventory |
| D. | plus beginning inventory |
| Answer» D. plus beginning inventory | |
| 88. |
The measuring of capacity in terms of normal capacity utilization is also termed as |
| A. | output demanded |
| B. | input demanded |
| C. | capacity supplied |
| D. | capacity borrowed |
| Answer» B. input demanded | |
| 89. |
The change in variable costing in operating income, is calculated by multiplying contribution margin per unit to |
| A. | increase in units sold |
| B. | change in quantity of sold units |
| C. | increase in units manufactured |
| D. | decease in units manufactured |
| Answer» C. increase in units manufactured | |
| 90. |
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 |
| A. | 100 units |
| B. | 90 units |
| C. | 110 units |
| D. | 120 units |
| Answer» C. 110 units | |
| 91. |
The factors that affect the demand of the customers include |
| A. | cyclical factors |
| B. | seasonal factors |
| C. | trend factors |
| D. | all of above |
| Answer» E. | |
| 92. |
The product capacity and costing, performance evaluation and regulatory requirements are the purposes of |
| A. | denominator level choices |
| B. | numerator level choices |
| C. | normal level choices |
| D. | standard level choices |
| Answer» B. numerator level choices | |
| 93. |
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 |
| A. | $4,200 |
| B. | $2,300 |
| C. | $7,700 |
| D. | $6,700 |
| Answer» C. $7,700 | |
| 94. |
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 |
| A. | 65 units |
| B. | 75 units |
| C. | 95 units |
| D. | 85 units |
| Answer» D. 85 units | |
| 95. |
The managers using capacity planning do not make |
| A. | pricing decisions |
| B. | marketing decisions |
| C. | financial decisions |
| D. | cost budgeting decisions |
| Answer» B. marketing decisions | |
| 96. |
The budgeted fixed manufacturing cost is divided by budgeted fixed manufacturing cost per unit to calculate |
| A. | fixed material price |
| B. | variable materials price |
| C. | fixed production units |
| D. | budgeted production units |
| Answer» E. | |
| 97. |
The fixed rate of calculation is based on the |
| A. | capacity used |
| B. | capacity available |
| C. | capacity utilization |
| D. | downward demand |
| Answer» C. capacity utilization | |
| 98. |
If the total sales are $250000, the beginning inventory is $25000 and the ending inventory is $25000, then total production would be |
| A. | $250,000 |
| B. | $350,000 |
| C. | $300,000 |
| D. | $400,000 |
| Answer» D. $400,000 | |
| 99. |
An approach in which, the over allocated and under allocated is spread in, ending balance of finished goods control, is called |
| A. | allocation approach |
| B. | unadjusted approach |
| C. | proration approach |
| D. | adjusted approach |
| Answer» D. adjusted approach | |
| 100. |
An approach in which restating the amounts, in general ledgers by using actual cost rates, is classified as |
| A. | unadjusted cost approach |
| B. | adjusted allocation rate approach |
| C. | unadjusted allocation approach |
| D. | adjusted cost approach |
| Answer» C. unadjusted allocation approach | |