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 10 of 11

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Q91.
If the change in variable costing in operating income is $9000 and contribution margin per unit is $6000, then change in sold units would be

a.

$2.5 per unit

b.

$1.5 per unit

c.

$3.5 per unit

d.

$5.5 per unit

Discuss
Answer: (b).$1.5 per unit
Q92.
If the per unit budget per unit cost is $200 and budgeted production units are 350, then fixed budgeted manufacturing costs will be

a.

$40,000

b.

$60,000

c.

$70,000

d.

$50,000

Discuss
Answer: (c).$70,000
Q93.
If the contribution margin per unit is $7500, selling price is $1300 and variable manufacturing cost per unit is $1700, then per unit cost of marketing would be

a.

$4,500

b.

$5,500

c.

$6,500

d.

$7,500

Discuss
Answer: (a).$4,500
Q94.
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

Discuss
Answer: (d).$40
Q95.
If the selling price is $2500, variable manufacturing cost per unit is $1000 and variable marketing cost per unit is $500, then contribution margin per unit will be

a.

$4,000

b.

$2,500

c.

$1,000

d.

$15,000

Discuss
Answer: (c).$1,000
Q96.
The difference between master budget capacity and practical capacity is considered as

a.

normal used capacity

b.

unplanned and unused capacity

c.

planned unused capacity

d.

unplanned used capacity

Discuss
Answer: (c).planned unused capacity
Q97.
In manufacturing companies, the variable and absorption costing are methods, which are used in

a.

recording of liabilities

b.

costing of current assets

c.

costing of machinery

d.

costing of inventories

Discuss
Answer: (d).costing of inventories
Q98.
If the production is greater than sales, then operating income under variable costing is

a.

negative income value

b.

lower income

c.

higher income

d.

zero dividends

Discuss
Answer: (b).lower income
Q99.
In accounting terms, the term capacity refers to

a.

upper limit

b.

lower limit

c.

zero limit

d.

minimal cost

Discuss
Answer: (a).upper limit
Q100.
Under absorption costing, the fixed cost of manufacturing is deferred to some

a.

present period

b.

future period

c.

yearly period

d.

monthly period

Discuss
Answer: (b).future period
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