Common Costs MCQs with Answers PDF Download – Test 162

MCQ 806: According to incremental method, the party which receives the highest ranking in allocation of common cost is classified as:

1. Third incremental party
2. second incremental party
3. primary party
4. First incremental party

MCQ 807: If the total manufacturing cost is $40000 and the total units manufactured is 500 units, then the per unit cost would be:

1. $80
2. $65
3. $7
4. $35

MCQ 808: If the budgeted fixed manufacturing cost is $150000 and the per unit cost is $120, then budgeted production units will be:

1. $1,250
2. $1,350
3. $1,450
4. $1,550

MCQ 809: The production volume variance under absorption costing:

1. must be inventoriable
2. must exist
3. must not exist
4. non-inventoriable

MCQ 810: The difference between actual quantity and budgeted quantity of cost allocation base is classified as:

1. fixed overhead efficiency variance
2. variable overhead efficiency variance
3. variable overhead manufacturing variance
4. fixed overhead manufacturing variance