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 9 of 11

Q81.
The theoretical capacity of the company considers ideal goal of
Discuss
Answer: (c).capacity utilization
Q82.
In variable costing, the variable manufacturing and fixed manufacturing cost focus on
Discuss
Answer: (b).similarities
Q83.
The normal costing and standard costing methods are used in decisions such as
Discuss
Answer: (d).both b and c
Q84.
If the production is greater than sales, then operating income under absorption costing is
Discuss
Answer: (a).higher income
Q85.
If the budgeted fixed manufacturing cost is $150000 and the per unit cost is $120, then budgeted production units will be
Discuss
Answer: (a).$1,250
Q86.
The production volume variance under absorption costing
Discuss
Answer: (c).must not exist
Q87.
The selling price minus variable manufacturing cost per unit, minus variable marketing cost per unit is equal to
Discuss
Answer: (d).contribution margin per unit
Q88.
If the contribution margin per unit is $12300 and the change in sold quantity of units is 50, then change in variable costing operating income will be
Discuss
Answer: (c).$615,000
Q89.
The capacity of the operations in company, which does not consider shutdown periods and interruptions, in operations is considered as
Discuss
Answer: (b).theoretical costing
Q90.
The cost which is excluded from inventoriable costs in variable costing method is called
Discuss
Answer: (b).fixed manufacturing cost