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 5 of 11

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Q41.
The budgeted variable overhead rate, is multiplied to an actual quantity of allocation base, is to calculate variable manufacturing cost of overheads in
Discuss
Answer: (d).normal costing method
Q42.
In normal costing, an actual quantity of cost allocation used base is multiplied to budgeted fixed overhead rates to calculate the
Discuss
Answer: (c).fixed manufacturing overhead cost
Q43.
An actual quantity of input use is multiplied to actual prices, to calculate direct variable manufacturing cost in
Discuss
Answer: (a).actual costing method
Q44.
In two of the methods of costing, the operating income will be different if the
Discuss
Answer: (b).inventory changes
Q45.
The total capacity of producing output, while operating at full efficiency is known as
Discuss
Answer: (d).theoretical costing
Q46.
If target operating income is $45000 and contribution margin per unit is $500, then number of units must be sold to earn targeted operating incomes will be
Discuss
Answer: (b).90 units
Q47.
The measuring of capacity in terms of normal capacity utilization is also termed as
Discuss
Answer: (a).output demanded
Q48.
The change in variable costing in operating income, is calculated by multiplying contribution margin per unit to
Discuss
Answer: (b).change in quantity of sold units
Q49.
The product capacity and costing, performance evaluation and regulatory requirements are the purposes of
Discuss
Answer: (a).denominator level choices
Q50.
The factors that affect the demand of the customers include
Discuss
Answer: (d).all of above