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 2 of 11

Discover more Topics under Cost Accounting

Q11.
An approach in which restating the amounts, in general ledgers by using actual cost rates, is classified as

a.

unadjusted cost approach

b.

adjusted allocation rate approach

c.

unadjusted allocation approach

d.

adjusted cost approach

Discuss
Answer: (b).adjusted allocation rate approach
Q12.
If the direct material cost of goods sold is $7500, and through contribution is $15650, then revenues will be

a.

$8,150

b.

$23,150

c.

$33,150

d.

$13,150

Discuss
Answer: (b).$23,150
Q13.
The capacity utilization of the business, to satisfy average customer's demand, for current budget period of time is termed as

a.

master budget capacity utilization

b.

finite cost utilization

c.

infinite cost utilization

d.

infinite budget capacity utilization

Discuss
Answer: (a).master budget capacity utilization
Q14.
If the total sales are $250000, the beginning inventory is $25000 and the ending inventory is $25000, then total production would be

a.

$250,000

b.

$350,000

c.

$300,000

d.

$400,000

Discuss
Answer: (c).$300,000
Q15.
An approach in which, the over allocated and under allocated is spread in, ending balance of finished goods control, is called

a.

allocation approach

b.

unadjusted approach

c.

proration approach

d.

adjusted approach

Discuss
Answer: (c).proration approach
Q16.
If the capacity utilization and its cost are fixed in product costing, the capacity management is

a.

for short run

b.

for long run

c.

for one day

d.

for few days

Discuss
Answer: (a).for short run
Q17.
The budgeted fixed manufacturing cost for per unit, which is used to measure per unit cost of supplying is called

a.

indirect labor

b.

capacity

c.

raw material

d.

direct labor

Discuss
Answer: (b).capacity
Q18.
If the revenues are $25000 and through put contribution is $12000, then direct material cost of goods sold will be

a.

$57,000

b.

$37,000

c.

$47,000

d.

$13,000

Discuss
Answer: (d).$13,000
Q19.
In absorption costing, the contribution margin per unit, fixed operating and manufacturing costs are all the dependents of

a.

profit point

b.

breakeven point

c.

production point

d.

cost point

Discuss
Answer: (b).breakeven point
Q20.
In actual costing, an actual quantity of used inputs are multiplied with actual prices to calculate

a.

fixed direct manufacturing cost

b.

variable direct manufacturing cost

c.

fixed indirect manufacturing cost

d.

variable indirect manufacturing cost

Discuss
Answer: (a).fixed direct manufacturing cost
Page 2 of 11