Inventory Costing Methods MCQ with Answers PDF Download – Test 184

MCQ 916: The difference between master budget capacity and practical capacity is considered as:

1. normal used capacity
2. unplanned and unused capacity
3. planned unused capacity
4. unplanned used capacity

MCQ 917: If the difference in costs is $32000 and the slope coefficient is 0.40, then difference in machine hours would be:

1. $80,000
2. $12,800
3. $70,000
4. $22,800

MCQ 918: The what-if technique, which examines changes in results, if original prediction would not be achieved is called:

1. change analysis
2. original analysis
3. sensitivity analysis
4. predicted analysis

MCQ 919: Considering two fiscal years 2013 and 2014, an input price in 2013 and 2014 are $9 and $11 per unit respectively and input required units in 2013 to produce output in 2014 are 30000 units, then cost effect of price recovery will be:

1. $60,000
2. $6,000
3. $65,000
4. $6,500

MCQ 920: In the budget hierarchy, the material handling cost is:

1. fixed manufacturing cost
2. batch level cost
3. per unit cost
4. factory overall cost