Inventory Costing: Manufacturing Companies Study App | BBA Cost Accounting Quiz e-Book PDF
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BBA Cost Accounting Entrance Exam MCQs – Mock Test 109

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Inventory Costing: Manufacturing Companies Quiz – Mock Test 109 PDF Download

MCQ 541: 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 542: If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be:

  1. $30,500
  2. $20,500
  3. $25,500
  4. $32,500

MCQ 543: An expected future revenue, which diverges in unconventional course of action is classified as:

  1. partial revenue
  2. total revenue
  3. relevant revenues
  4. irrelevant revenues

MCQ 544: If the budgeted revenue is $50000 and the breakeven revenue is $35000, then the margin of safety would be:

  1. $12,000
  2. $14,000
  3. $15,000
  4. $16,000

MCQ 545: 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

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