Inventory Costing Methods MCQ (Multiple Choice Questions) PDF Download

An approach used for choosing capacity level, having no beginning inventory, is classified as

1. write off variance approach
2. write in variance approach
3. adjusted variance approach
4. unadjusted variance approach

If the budgeted fixed cost is $26000, per unit budgeted denominator level is 1300 units, then budgeted fixed cost will be

1. $50
2. $30
3. $20
4. $40

If target operating income is $38000, contribution margin per unit is $400, then the number of units must be sold to earn targeted operating income will be

1. 65 units
2. 75 units
3. 95 units
4. 85 units

The managers using capacity planning do not make

1. pricing decisions
2. marketing decisions
3. financial decisions
4. cost budgeting decisions

The budgeted fixed manufacturing cost is divided by budgeted fixed manufacturing cost per unit to calculate

1. fixed material price
2. variable materials price
3. fixed production units
4. budgeted production units