BBA Cost Accounting MCQs – Practice Test 1 (Chapter 7)

Capacity Analysis and Inventory Costing MCQs with Answers PDF Download – Test 1

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Capacity Analysis & Inventory Costing MCQs – Practice Test 1 PDF Download

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

unplanned level
budgeting level
numerator level
denominator level

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

write off variance approach
write in variance approach
adjusted variance approach
unadjusted 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:

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

higher income
zero dividends
negative income value
lower income

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

more
less
zero
none of above

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