Inventory Costing Methods Quiz with Answers PDF Download – Test 125

MCQ 621: The capacity of the company, which considers the operating interruptions such as holiday shutdown and maintenance time is called:

1. standard capacity
2. actual capacity
3. practical capacity
4. theoretical costing

MCQ 622: The method of estimation of cost function, by making the opinions and analysis about cost and cost drivers is classified as:

1. conference method
2. inference method
3. pricing method
4. manufacturing method

MCQ 623: The forth step in process costing system is to:

1. summarize total costs
2. compute cost for each equivalent unit
3. summarize flow of output
4. compute output in units

MCQ 624: If the variable overhead flexible budget variance is $37000 and the flexible budget amount is $10000, then the actual incurred costs would be:

1. $27,000
2. $25,000
3. $47,000
4. $57,000

MCQ 625: An efficiency variance is subtracted from actual input quantity to calculate:

1. actual quantity manufactured
2. budgeted quantity manufactures
3. budgeted quantity sold
4. budgeted input quantity