Variable Cost MCQs (Multiple Choice Questions) PDF Download - 138

The variable cost is subtracted from fixed costs to calculate

1. unit income
2. fixed income
3. operating income
4. marginal income

The costing system, which omits some of the journal entries in accounting system is known as

1. in-time costing
2. trigger costing
3. back flush costing
4. lead time costing

If the budgeted annual manufacturing indirect cost is $2250000 and the cost allocation base is 2800 labor hour, then budgeted manufacturing overhead rate will be

1. $803.571 per labor hour
2. $805 per labor hour
3. $905 per labor hour
4. $802 per labor hour

The fixed cost is divided to contribution margin to calculate

1. breakeven revenue
2. total revenue
3. fixed revenue
4. variable revenue

The costing, which explains how and when scrap affects the operating income of company is classified as

1. inventory costing
2. conversion costing
3. normal scrap costing
4. abnormal scrap costing