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- Capacity Analysis and Inventory Costingaccounting-mcqs › cost-accounting-mcqs › capacity-analysis-and-inventory-costing
- Published
- 27 Apr 2023
- Last updated
- 28 May 2026
Given that the total revenue amounts to $85,000 and the throughput contribution is $63,700, what is the direct material cost included in the cost of goods sold?
Multiple choice question for Capacity Analysis and Inventory Costing. Select an option, then review the explanation below.
Explanation
The direct material cost of goods sold is calculated by subtracting the throughput contribution from the total revenue: $85,000 - $63,700 = $21,300.
More Capacity Analysis and Inventory Costing MCQs
Practice related questions from the same subject.
- 1.What term describes the operational capacity that is below the theoretical maximum capacity?
- 2.Under the Variable Costing approach, how are fixed manufacturing overhead costs handled during the accounting period?
- 3.What does the denominator represent in the fixed manufacturing cost rate calculation?
- 4.Which of the following is used to determine product capacity, cost analysis, performance assessment, and compliance with regulations?
- 5.In absorption costing, which format does the income statement typically use?