Types of Spoilage Notes Questions with Answers PDF Download – Test 215

MCQ 1071: The type of spoilage, which is considered as controllable and can be avoided is called:

1. abnormal spoilage
2. normal spoilage
3. transferred-in spoilage
4. transferred-out spoilage

MCQ 1072: In dependent variable cost pool, the relationship between individual cost items and cost drivers can be classified as:

1. non homogeneous relationship
2. homogeneous relationship
3. an internal relationship
4. an extreme relationship

MCQ 1073: If tax operating income is $885000 per year and the net initial investment is $35750000 then increase in average is:

1. 0.475% per year
2. 4.475% per year
3. 3.475% per year
4. 2.475% per year

MCQ 1074: If the purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be:

1. 14000 units
2. 14500 units
3. 15000 units
4. 15500 units

MCQ 1075: The centers such as revenue, cost, investment and profit all are known as:

1. marketing center
2. financial center
3. responsibility center
4. planning center