Inventory Related Relevant Costs Quiz Questions and Answers PDF - 49

MCQ 241: If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be

1. $9,650
2. $2,350
3. $3,750
4. $2,750

MCQ 242: The higher plant leasing, higher administrative costs and higher depreciation on equipment and plants are all the factors of

1. favorable spending variance
2. unfavorable spending variance
3. favorable price variance
4. unfavorable price variance

MCQ 243: The quantity of produced output is divided with the cost of all used inputs to calculate

1. engineered productivity
2. targeted productivity
3. partial productivity
4. total factor productivity

MCQ 244: The slope coefficient of cost function is zero because it intersects the

1. x-axis at one
2. y-axis at constant
3. x-axis at constant
4. y-axis at one

MCQ 245: As compared to sale value of main products, the by-products have

1. low sale value
2. high sale value
3. unstable sale value
4. relevant sale value