Variable Cost MCQs with Answers PDF Download – Test 138

MCQ 686: The variable cost is subtracted from fixed costs to calculate:

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

MCQ 687: 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

MCQ 688: 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

MCQ 689: The fixed cost is divided to contribution margin to calculate:

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

MCQ 690: 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