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Capacity Analysis and Inventory Costing MCQs with Answers PDF Download – Test 13

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Download the "Capacity Analysis and Inventory Costing MCQs" App: Costing method, in which the variable manufacturing costs are treated as inventoriable cost is called; MCQ with answers: absorption costing, manufacturing costing, variable costing, and labor costing. Solve Target Costing & Target Pricing Quiz Questions, download Google e-Book (Free Chapter) for remote accounting courses.

Capacity Analysis & Inventory Costing MCQs – Practice Test 13 PDF Download

MCQ 61: The denominator of the fixed manufacturing cost rate is:

  1. adjusted labor utilization
  2. unadjusted labor utilization
  3. material utilization
  4. capacity utilization

MCQ 62: The costing method, in which the variable manufacturing costs are treated as inventoriable cost is called:

  1. manufacturing costing
  2. absorption costing
  3. variable costing
  4. labor costing

MCQ 63: If the selling price is $5000, variable manufacturing cost per unit is $1500 and variable marketing cost per unit is $500, then contribution margin per unit will be:

  1. $7,000
  2. $3,000
  3. $4,000
  4. $5,000

MCQ 64: In variable costing, an effect on cost volume profit relationship is driven by:

  1. unit level of sales
  2. unit level of production
  3. unit level of inventory
  4. unit dividends

MCQ 65: The fixed manufacturing cost under variable costing is:

  1. inventoriable
  2. non-inventoriable
  3. high dividend
  4. low dividend

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