Normal Costings MCQs with Answers PDF Download – Test 86

MCQ 426: The manufacturing overhead cost allocated to individual jobs is classified as:

1. manufacturing overhead allocated
2. cost overhead applied
3. manufacturing overhead applied
4. both A and C

MCQ 427: If target operating income is $45000 and contribution margin per unit is $500, then number of units must be sold to earn targeted operating incomes will be:

1. 100 units
2. 90 units
3. 110 units
4. 120 units

MCQ 428: The measuring of capacity in terms of normal capacity utilization is also termed as:

1. output demanded
2. input demanded
3. capacity supplied
4. capacity borrowed

MCQ 429: The second step, in constant gross margin percentage Net Realizable Value (NRV) method, to allocate joint cost is to compute:

1. allocated joint costs
2. cost of split off point
3. Gross margin percentage
4. total production cost of each product

MCQ 430: In stand-alone revenue-allocation method, the type of weights available for this method are:

1. selling prices as weights
2. unit costs as weights
3. physical units as weights
4. all of above