Pak
QuizHub
Home
Important MCQs
Past Papers
About
Contact
Privacy
Capacity Analysis and Inventory Costing
/
MCQs
Capacity Analysis and Inventory Costing – MCQs
107 questions. Click to practice.
Show Answers
Correct options are highlighted when revealed.
1.
How are period costs classified within costing techniques?
Production costs for the period
Costs recognized as period expenses
Costs incurred during the period
Accrued expenses for the period
None of the above
2.
Given that the total revenue is $25,000 and the throughput contribution amounts to $12,000, what is the direct material cost included in the cost of goods sold?
$57,000
$37,000
$47,000
$13,000
3.
When capacity utilization and its associated costs remain constant in product costing, the capacity management applies to the __________ period?
short-term
long-term
a single day
several days
4.
Given that the contribution margin per unit is $5,000, the selling price per unit is $1,500, and the variable manufacturing cost per unit is $1,200, what is the per unit marketing cost?
$4,200
$2,300
$7,700
$6,700
$3,500
5.
Under variable costing, how is operating income affected when inventory levels decline?
It increases
It decreases
It remains unchanged
None of the above
6.
Given a total budgeted fixed cost of $26,000 and a budgeted production volume of 1,300 units, what is the fixed cost allocated per unit?
$50 per unit
$30 per unit
$20 per unit
$40 per unit
None of the above
7.
In absorption costing, which factor influences the size of a favorable production volume variance?
Unexpected production level
Planned budget level
Numerator level
Denominator level
Standard cost level
8.
Which of the following can decrease the numerator in the fixed manufacturing overhead rate calculation?
write ups
write downs
upward write up
downward write down
9.
Given a contribution margin of $16,700 per unit and an increase in units sold by 20, what is the resulting change in operating income under variable costing?
635 dollars
735 dollars
835 dollars
334,000 dollars
Not applicable
10.
To determine which value is obtained by adding the throughput contribution to the direct material cost of goods sold?
overhead costs
total revenue
total expenses
direct material expenses
operating income
11.
Given that the cost of direct materials for goods sold is $4,500 and total sales revenue amounts to $9,000, what is the contribution margin?
-$13,500
$4,500
-$4,500
$13,500
12.
In accounting, what does the term 'capacity' typically signify?
Maximum allowable limit
Minimum allowable limit
No limit
Lowest possible expense
13.
What term describes the gap between the master budget capacity and the practical capacity?
Regularly utilized capacity
Unexpected and idle capacity
Intentionally unused capacity
Unexpectedly utilized capacity
14.
Given a budgeted fixed cost of $48,000 and a budgeted denominator level of 1,200 units, what is the budgeted fixed cost per unit?
$50 per unit
$45 per unit
$55 per unit
$40 per unit
Cannot be determined
15.
Given that the change in operating income under variable costing is $9,000 and the contribution margin per unit is $6,000, what is the change in the number of units sold?
2.5 units
1.5 units
3.5 units
5.5 units
4.0 units
16.
Which term describes a company's operational capacity that excludes downtime and interruptions?
typical capacity
theoretical costing
benchmark capacity
realized capacity
effective capacity
17.
Under absorption costing, what is true about the production volume variance?
It has to be included in inventory valuation
It is required to occur
It should not arise
It cannot be part of inventory
18.
The theoretical capacity of an organization is based on the ideal level of which type of utilization?
typical utilization
benchmark utilization
capacity utilization
realized utilization
none of the above
19.
Which type of capacity is regarded as the most reliable indicator of capacity utilization?
incremental capacity
available capacity
required capacity
practical capacity
theoretical capacity
20.
Which type of variance is accounted for in absorption costing but excluded from variable costing?
production volume variance
cost volume variance
profit volume variance
fixed cost variance
← Previous
Page 4 of 6
Next →
Capacity Analysis and Inventory Costing – MCQs | PakQuizHub