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Capacity Analysis and Inventory Costing – MCQs

107 questions. Click to practice.

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1.Given a selling price of $2,500, a variable manufacturing cost of $1,000 per unit, and a variable marketing cost of $500 per unit, what is the contribution margin per unit?

2.Given a contribution margin of $7,500 per unit, a selling price of $1,300, and a variable manufacturing cost of $1,700 per unit, what is the marketing cost per unit?

3.Given a per unit budgeted cost of $200 and a planned production volume of 350 units, what is the total fixed budgeted manufacturing cost?

4.In the variable costing approach, which cost is not included in the inventoriable costs?

5.Given a contribution margin of $12,300 per unit and an increase in units sold by 50, what is the resulting change in operating income under variable costing?

6.What do you get when you subtract both the variable production cost per unit and the variable selling cost per unit from the selling price per unit?

7.Given a fixed manufacturing overhead budget of $150,000 and a fixed cost per unit of $120, what is the planned number of units to be produced?

8.When production exceeds sales, how does operating income under absorption costing typically compare?

9.In which types of decisions are normal costing and standard costing techniques commonly applied?

10.Under variable costing, what is emphasized when considering variable and fixed manufacturing costs?

11.Given a target operating income of $84,000 and a contribution margin of $600 per unit, how many units need to be sold to achieve the desired operating income?

12.In which costing method is the standard amount of input for the actual output multiplied by standard prices to determine the variable direct manufacturing cost?

13.Given a fixed manufacturing cost budget of $35,000 and a planned production volume of 7,000 units, what is the budgeted fixed manufacturing cost allocated per unit?

14.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?

15.Given that the budgeted cost per unit is $165 and the planned production quantity is 400 units, what is the total fixed manufacturing budgeted cost?

16.What term describes the capacity usage of a company required to meet the typical customer demand during a given timeframe?

17.What term describes a company's capacity that accounts for downtime due to holidays and maintenance periods?

18.Under variable costing, how is the production volume variance classified?

19.How is fixed manufacturing cost treated in variable costing?

20.Given a selling price of $5,000, a variable production cost of $1,500 per unit, and a variable selling expense of $500 per unit, what is the contribution margin per unit?