BBA: Finance Courses

Chapter 7: MBA Cost Accounting Exam Tests

MBA Cost Accounting MCQs - Chapter 7

# Capacity Analysis and Inventory Costing Multiple Choice Questions (MCQ) PDF - 1

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The Multiple Choice Question (MCQ Quiz) Under absorption costing, the magnitude for favorable volume production variance is affected by the choice of: budgeting level, unplanned level, numerator level and denominator level with "Capacity Analysis and Inventory Costing" App Download (Free) for online classes business administration. Solve absorption costing quiz questions, download Google eBook (Free Sample) for online BBA degree.

## Capacity Analysis & Inventory Costing MCQ Quiz : Test 1

MCQ 1: Under absorption costing, the magnitude for favorable volume production variance is affected by the choice of

A) unplanned level
B) budgeting level
C) numerator level
D) denominator level

MCQ 2: An approach used for choosing capacity level, having no beginning inventory, is classified as

A) write off variance approach
B) write in variance approach

MCQ 3: If the budgeted fixed cost is \$26000, per unit budgeted denominator level is 1300 units, then budgeted fixed cost will be

A) \$50
B) \$30
C) \$20
D) \$40

MCQ 4: If the production is less than sales so, an operating income under absorption costing will be called

A) higher income
B) zero dividends
C) negative income value
D) lower income

MCQ 5: If the inventory level decreases then operating income, under variable costing, will be reported

A) more
B) less
C) zero
D) none of above

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