Capacity Analysis and Inventory Costing MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Capacity Analysis and Inventory Costing, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Capacity Analysis and Inventory Costing MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Capacity Analysis and Inventory Costing mcq questions that explore various aspects of Capacity Analysis and Inventory Costing problems. Each MCQ is crafted to challenge your understanding of Capacity Analysis and Inventory Costing principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Capacity Analysis and Inventory Costing MCQs are your pathway to success in mastering this essential Cost Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Capacity Analysis and Inventory Costing. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Capacity Analysis and Inventory Costing knowledge to the test? Let's get started with our carefully curated MCQs!

Capacity Analysis and Inventory Costing MCQs | Page 1 of 11

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Q1.
Under absorption costing, the magnitude for favorable volume production variance is affected by the choice of
Discuss
Answer: (d).denominator level
Q2.
An approach used for choosing capacity level, having no beginning inventory, is classified as
Discuss
Answer: (a).write off variance approach
Q3.
If the budgeted fixed cost is $26000, per unit budgeted denominator level is 1300 units, then budgeted fixed cost will be
Discuss
Answer: (c).$20
Q4.
If the production is less than sales so, an operating income under absorption costing will be called
Discuss
Answer: (d).lower income
Q5.
If the inventory level decreases then operating income, under variable costing, will be reported
Discuss
Answer: (a).more
Q6.
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
Discuss
Answer: (c).95 units
Q7.
The managers using capacity planning do not make
Discuss
Answer: (a).pricing decisions
Q8.
The budgeted fixed manufacturing cost is divided by budgeted fixed manufacturing cost per unit to calculate
Discuss
Answer: (d).budgeted production units
Q9.
The fixed rate of calculation is based on the
Discuss
Answer: (b).capacity available
Q10.
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
Discuss
Answer: (b).$2,300