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 3 of 11

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Q21.
Throughout the period costs, costing methods are treated as

a.

manufacturing in period

b.

expenses of period

c.

incurred in period

d.

accrual in period

Discuss
Answer: (b).expenses of period
Q22.
The recalculation of demand can be avoided, by using practical capacity while calculation of budgeted fixed manufacturing per unit cost as

a.

denominator

b.

numerator

c.

multiplier

d.

equalizer

Discuss
Answer: (a).denominator
Q23.
The difference between absorption and variable costing is the accountability of

a.

direct overhead

b.

indirect overhead cost

c.

fixed manufacturing cost

d.

variable manufacturing cost

Discuss
Answer: (c).fixed manufacturing cost
Q24.
If the budgeted fixed manufacturing cost is $124000 and the per unit cost is $124, then budgeted production units can be

a.

$4,000

b.

$1,000

c.

$2,000

d.

$3,000

Discuss
Answer: (b).$1,000
Q25.
The method of inventory costing, in which all variable and fixed manufacturing cost is considered as inventoriable cost can be termed as

a.

absorption costing

b.

variable costing

c.

fixed costing

d.

manufacturing cost

Discuss
Answer: (a).absorption costing
Q26.
If the total sales are $355000, the beginning inventory is $23000 and the ending inventory is $15000, then total production would be

a.

$363,000

b.

$463,000

c.

$393,000

d.

$493,000

Discuss
Answer: (a).$363,000
Q27.
Direct material cost of sold goods is subtracted from revenues to calculate

a.

accrual contribution

b.

indirect contribution

c.

throughput contribution

d.

direct contribution

Discuss
Answer: (c).throughput contribution
Q28.
Another name of super-variable costing is

a.

throughput costing

b.

unit costing

c.

batch costing

d.

manufacturing costing

Discuss
Answer: (a).throughput costing
Q29.
An income statement in absorption costing follows the format of

a.

inventory margin

b.

sales margin

c.

Gross margin

d.

production margin

Discuss
Answer: (c).Gross margin
Q30.
The standard cost of allocation base, allowed to output achieved, is multiplied to standard variable overhead rate is to calculate

a.

indirect manufacturing overhead cost

b.

direct manufacturing overhead cost

c.

fixed manufacturing overhead cost

d.

variable manufacturing overhead cost

Discuss
Answer: (d).variable manufacturing overhead cost
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