Capacity Analysis And Inventory Costing MCQs

Option A: practical capacity

Option B: theoretical costing

Option C: standard capacity

Option D: actual capacity

Correct Answer: practical capacity ✔

Option A: variable quantity

Option B: fixed quantity

Option C: price

Option D: expense

Correct Answer: expense ✔

Option A: adjusted labor utilization

Option B: unadjusted labor utilization

Option C: material utilization

Option D: capacity utilization

Correct Answer: capacity utilization ✔

Option A: denominator level choices

Option B: numerator level choices

Option C: normal level choices

Option D: standard level choices

Correct Answer: denominator level choices ✔

Option A: inventory margin

Option B: sales margin

Option C: Gross margin

Option D: production margin

Correct Answer: Gross margin ✔

Option A: profit point

Option B: breakeven point

Option C: production point

Option D: cost point

Correct Answer: breakeven point ✔

Option A: indirect labor

Option B: capacity

Option C: raw material

Option D: direct labor

Correct Answer: capacity ✔

Option A: allocation approach

Option B: unadjusted approach

Option C: proration approach

Option D: adjusted approach

Correct Answer: proration approach ✔

Option A: master budget capacity utilization

Option B: finite cost utilization

Option C: infinite cost utilization

Option D: infinite budget capacity utilization

Correct Answer: master budget capacity utilization ✔

Option A: unadjusted cost approach

Option B: adjusted allocation rate approach

Option C: unadjusted allocation approach

Option D: adjusted cost approach

Correct Answer: adjusted allocation rate approach ✔

Option A: capacity used

Option B: capacity available

Option C: capacity utilization

Option D: downward demand

Correct Answer: capacity available ✔

Option A: 65 units

Option B: 75 units

Option C: 95 units

Option D: 85 units

Correct Answer: 95 units ✔

Option A: higher income

Option B: zero dividends

Option C: negative income value

Option D: lower income

Correct Answer: lower income ✔

Option A: write off variance approach

Option B: write in variance approach

Option C: adjusted variance approach

Option D: unadjusted variance approach

Correct Answer: write off variance approach ✔

Option A: unit level of production

Option B: unit level of sales

Option C: chosen denominator level

Option D: all of above

Correct Answer: all of above ✔

Option A: $95,000

Option B: $235,000

Option C: $295,000

Option D: $195,000

Correct Answer: $235,000 ✔

Option A: quantity of units sold

Option B: quantity of units manufactured

Option C: increase in units sold

Option D: decrease in units sold

Correct Answer: quantity of units sold ✔

Option A: present period

Option B: future period

Option C: yearly period

Option D: monthly period

Correct Answer: future period ✔

Option A: negative income value

Option B: lower income

Option C: higher income

Option D: zero dividends

Correct Answer: lower income ✔

Option A: recording of liabilities

Option B: costing of current assets

Option C: costing of machinery

Option D: costing of inventories

Correct Answer: costing of inventories ✔

Option A: $4,000

Option B: $2,500

Option C: $1,000

Option D: $15,000

Correct Answer: $1,000 ✔

Option A: $4,500

Option B: $5,500

Option C: $6,500

Option D: $7,500

Correct Answer: $4,500 ✔

Option A: $40,000

Option B: $60,000

Option C: $70,000

Option D: $50,000

Correct Answer: $70,000 ✔

Option A: variable factory overheads

Option B: fixed manufacturing cost

Option C: variable manufacturing costs

Option D: fixed factory overheads

Correct Answer: fixed manufacturing cost ✔

Option A: $315,000

Option B: $415,000

Option C: $615,000

Option D: $515,000

Correct Answer: $615,000 ✔

Option A: fixed margin per unit

Option B: variable margin per unit

Option C: contribution margin per batch

Option D: contribution margin per unit

Correct Answer: contribution margin per unit ✔

Option A: $1,250

Option B: $1,350

Option C: $1,450

Option D: $1,550

Correct Answer: $1,250 ✔

Option A: higher income

Option B: zero dividends

Option C: negative income value

Option D: lower income

Correct Answer: higher income ✔

Option A: investment decisions

Option B: pricing decisions

Option C: product mix decisions

Option D: Both B and C

Correct Answer: Both B and C ✔

Option A: distinction

Option B: similarities

Option C: increase in units

Option D: decrease in units

Correct Answer: similarities ✔

Option A: 100 units

Option B: 110 units

Option C: 120 units

Option D: 140 units

Correct Answer: 140 units ✔

Option A: output costing

Option B: standard costing

Option C: achieved costing

Option D: input costing

Correct Answer: standard costing ✔

Option A: $20

Option B: $5

Option C: $10

Option D: $15

Correct Answer: $5 ✔

Option A: $21,300

Option B: $148,700

Option C: $138,700

Option D: $118,700

Correct Answer: $21,300 ✔

Option A: $36,000

Option B: $66,000

Option C: $56,000

Option D: $46,000

Correct Answer: $66,000 ✔

Option A: seasonal capacity utilization

Option B: normal capacity utilization

Option C: standard capacity utilization

Option D: theoretical capacity utilization

Correct Answer: normal capacity utilization ✔

Option A: standard capacity

Option B: actual capacity

Option C: practical capacity

Option D: theoretical costing

Correct Answer: practical capacity ✔

Option A: must

Option B: not a must

Option C: non-inventoriable

Option D: inventoriable

Correct Answer: must ✔

Option A: inventoriable

Option B: non-inventoriable

Option C: high dividend

Option D: low dividend

Correct Answer: inventoriable ✔

Option A: $7,000

Option B: $3,000

Option C: $4,000

Option D: $5,000

Correct Answer: $3,000 ✔

Option A: manufacturing costing

Option B: absorption costing

Option C: variable costing

Option D: labor costing

Correct Answer: variable costing ✔

Option A: more sales

Option B: more inventory units

Option C: less inventory units

Option D: less sales

Correct Answer: more inventory units ✔

Option A: variable manufacturing cost

Option B: budgeted fixed manufacturing cost

Option C: adjusted manufacturing cost

Option D: unadjusted labor cost

Correct Answer: budgeted fixed manufacturing cost ✔

Option A: fixed manufacturing overhead cost

Option B: variable manufacturing overhead cost

Option C: indirect manufacturing overhead cost

Option D: direct manufacturing overhead cost

Correct Answer: fixed manufacturing overhead cost ✔

Option A: $200

Option B: $150

Option C: $50

Option D: $100

Correct Answer: $50 ✔

Option A: marginal cost per unit

Option B: variable cost per unit

Option C: fixed cost per unit

Option D: contribution margin per unit

Correct Answer: contribution margin per unit ✔

Option A: input costing

Option B: output costing

Option C: standard costing

Option D: achieved costing

Correct Answer: standard costing ✔

Option A: cyclical factors

Option B: seasonal factors

Option C: trend factors

Option D: all of above

Correct Answer: all of above ✔

Option A: 100 units

Option B: 90 units

Option C: 110 units

Option D: 120 units

Correct Answer: 90 units ✔

Option A: fixed cost does not change

Option B: inventory changes

Option C: inventory does not change

Option D: fixed cost changes

Correct Answer: inventory changes ✔

Option A: indirect manufacturing overhead cost

Option B: direct manufacturing overhead cost

Option C: fixed manufacturing overhead cost

Option D: variable manufacturing overhead cost

Correct Answer: fixed manufacturing overhead cost ✔

Option A: minus beginning inventory

Option B: minus ending inventory

Option C: plus ending inventory

Option D: plus beginning inventory

Correct Answer: plus ending inventory ✔

Option A: 3500 units

Option B: 2500 units

Option C: 3900 units

Option D: 4900 units

Correct Answer: 2500 units ✔

Option A: $27,100

Option B: $37,100

Option C: $10,200

Option D: $12,200

Correct Answer: $27,100 ✔

Option A: normal capacity utilization

Option B: abnormal capacity utilization

Option C: standard capacity utilization

Option D: infinite capacity utilization

Correct Answer: normal capacity utilization ✔

Option A: $2 per unit

Option B: $3 per unit

Option C: $4 per unit

Option D: $5 per unit

Correct Answer: $2 per unit ✔

Option A: indirect manufacturing overhead cost

Option B: direct manufacturing overhead cost

Option C: fixed manufacturing overhead cost

Option D: variable manufacturing overhead cost

Correct Answer: variable manufacturing overhead cost ✔

Option A: accrual contribution

Option B: indirect contribution

Option C: throughput contribution

Option D: direct contribution

Correct Answer: throughput contribution ✔

Option A: absorption costing

Option B: variable costing

Option C: fixed costing

Option D: manufacturing cost

Correct Answer: absorption costing ✔

Option A: direct overhead

Option B: indirect overhead cost

Option C: fixed manufacturing cost

Option D: variable manufacturing cost

Correct Answer: fixed manufacturing cost ✔

Option A: manufacturing in period

Option B: expenses of period

Option C: incurred in period

Option D: accrual in period

Correct Answer: expenses of period ✔

Option A: $57,000

Option B: $37,000

Option C: $47,000

Option D: $13,000

Correct Answer: $13,000 ✔

Option A: for short run

Option B: for long run

Option C: for one day

Option D: for few days

Correct Answer: for short run ✔

Option A: $4,200

Option B: $2,300

Option C: $7,700

Option D: $6,700

Correct Answer: $2,300 ✔

Option A: more

Option B: less

Option C: zero

Option D: none of above

Correct Answer: more ✔

Option A: $50

Option B: $30

Option C: $20

Option D: $40

Correct Answer: $20 ✔

Option A: unplanned level

Option B: budgeting level

Option C: numerator level

Option D: denominator level

Correct Answer: denominator level ✔

Option A: write ups

Option B: write downs

Option C: upward write up

Option D: downward write down

Correct Answer: write ups ✔

Option A: 635 units

Option B: 735 units

Option C: 835 units

Option D: 334 units

Correct Answer: 334 units ✔

Option A: indirect material

Option B: revenues

Option C: expenses

Option D: direct material

Correct Answer: revenues ✔

Option A: −$13500

Option B: $4,500

Option C: −$4500

Option D: $13,500

Correct Answer: $4,500 ✔

Option A: upper limit

Option B: lower limit

Option C: zero limit

Option D: minimal cost

Correct Answer: upper limit ✔

Option A: normal used capacity

Option B: unplanned and unused capacity

Option C: planned unused capacity

Option D: unplanned used capacity

Correct Answer: planned unused capacity ✔

Option A: $50

Option B: $45

Option C: $55

Option D: $40

Correct Answer: $40 ✔

Option A: $2.5 per unit

Option B: $1.5 per unit

Option C: $3.5 per unit

Option D: $5.5 per unit

Correct Answer: $1.5 per unit ✔

Option A: normal capacity

Option B: theoretical costing

Option C: standard capacity

Option D: actual capacity

Correct Answer: theoretical costing ✔

Option A: must be inventoriable

Option B: must exist

Option C: must not exist

Option D: non-inventoriable

Correct Answer: must not exist ✔

Option A: normal utilization

Option B: standard utilization

Option C: capacity utilization

Option D: actual utilization

Correct Answer: capacity utilization ✔

Option A: spiral capacity

Option B: supply capacity

Option C: demand capacity

Option D: practical capacity

Correct Answer: practical capacity ✔

Option A: production volume variance

Option B: cost volume variance

Option C: profit volume variance

Option D: fixed cost variance

Correct Answer: production volume variance ✔

Option A: direct costing

Option B: indirect costing

Option C: total costing

Option D: One factor costing

Correct Answer: direct costing ✔

Option A: of incurring

Option B: of sale

Option C: of manufacturing

Option D: of indirect recording

Correct Answer: of incurring ✔

Option A: downward supply spiral

Option B: upward supply spiral

Option C: downward demand spiral

Option D: upward demand spiral

Correct Answer: downward demand spiral ✔

Option A: unit level of sales

Option B: unit level of production

Option C: unit level of inventory

Option D: unit dividends

Correct Answer: unit level of sales ✔

Option A: manufacturing cost

Option B: super variable costing

Option C: throughput costing

Option D: both B and C

Correct Answer: both B and C ✔

Option A: 2500 units

Option B: 2000 units

Option C: 1000 units

Option D: 1500 units

Correct Answer: 1000 units ✔

Option A: high dividend

Option B: low dividend

Option C: inventoriable

Option D: non-inventoriable

Correct Answer: inventoriable ✔

Option A: accrual cost

Option B: incurred cost

Option C: period costs

Option D: setup costs

Correct Answer: period costs ✔

Option A: increase in units sold

Option B: change in quantity of sold units

Option C: increase in units manufactured

Option D: decease in units manufactured

Correct Answer: change in quantity of sold units ✔

Option A: output demanded

Option B: input demanded

Option C: capacity supplied

Option D: capacity borrowed

Correct Answer: output demanded ✔

Option A: standard capacity

Option B: actual capacity

Option C: normal capacity

Option D: theoretical costing

Correct Answer: theoretical costing ✔

Option A: actual costing method

Option B: normal costing method

Option C: direct costing method

Option D: indirect costing method

Correct Answer: actual costing method ✔

Option A: direct costing method

Option B: indirect costing method

Option C: actual costing method

Option D: normal costing method

Correct Answer: normal costing method ✔

Option A: capacity write down

Option B: capacity write up

Option C: capacity supplied

Option D: capacity borrowed

Correct Answer: capacity supplied ✔

Option A: production exceeds breakeven sales

Option B: breakeven sales exceeds production

Option C: price exceeds cost

Option D: cost exceeds price

Correct Answer: production exceeds breakeven sales ✔

Option A: budgeted production units

Option B: indirect production units

Option C: input material units

Option D: accrued production units

Correct Answer: budgeted production units ✔

Option A: negative income value

Option B: lower income

Option C: higher income

Option D: zero dividends

Correct Answer: higher income ✔

Option A: indirect labor cost of goods sold

Option B: direct labor cost of goods sold

Option C: direct material cost of goods sold

Option D: indirect material cost of goods sold

Correct Answer: direct material cost of goods sold ✔

Option A: throughput costing

Option B: unit costing

Option C: batch costing

Option D: manufacturing costing

Correct Answer: throughput costing ✔

Option A: $363,000

Option B: $463,000

Option C: $393,000

Option D: $493,000

Correct Answer: $363,000 ✔