Target Costing and Target Pricing MCQ with Answers PDF Download – Test 120

MCQ 596: An income, which a company aims to earn by selling each unit of market offering is classified as:

1. target operating income per unit
2. target cost per unit
3. total current full cost
4. total cost per unit

MCQ 597: The systematic evaluation of value chain, to reduce costs and high quality, to achieve satisfied customers is known as:

1. reverse engineering
2. value engineering
3. target engineering
4. operation engineering

MCQ 598: The flexible budget variance is subtracted from actual cost to calculate:

1. flexible budget cost
2. flexible investment cost
3. static budget cost
4. static variable cost

MCQ 599: If the budgeted price of input is $50, actual quantity of input is 150 units and the allowed budgeted quantity of input is 60 units then efficiency variance will be:

1. $4,500
2. $3,500
3. $2,500
4. $1,500

MCQ 600: In adjustment issues of costing, the database must contain reliable measure of:

1. fixed cost driver
2. cost driver and cost
3. cost driver and object
4. mixed cost driver