Planning of Variable and Fixed Overhead Costs Multiple Choice Questions with Answers – PDF Download

MCQ 1: The cost allocation base used by an operating manager is classified as:

1. machine hours
2. flexible hours
3. variable hours
4. fixed hours

MCQ 2: The difference between actual variable overhead cost and flexible budget variable overhead amount is termed as:

1. overhead flexible budget variance
2. overhead fixed budget variance
3. overhead flexible cost variance
4. overhead flexible price variance

MCQ 3: The costing technique, which traces direct costs by multiplying price rate for producing actual outputs is known as:

1. constant costing
2. standard costing
3. unit costing
4. batch costing

MCQ 4: An energy, machine maintenance, indirect materials and engineering support are considered as:

1. variable overhead cost
2. fixed overhead cost
3. fixed batch cost
4. variable batch cost

MCQ 5: The budget, which highlights the difference between actual quantity and budgeted quantity is termed as:

1. actual cost budget
2. flexible budget variance
3. inflexible budget
4. hourly budget