Strategic Analysis: Operating Income Notes Questions with Answers PDF Download – Test 31

MCQ 151: An amount of available capacity other than employed capacity, to meet the customer's demand, is classified as:

1. targeted capacity
2. budgeted capacity
3. recovery capacity
4. unused capacity

MCQ 152: In master budgeting, the cost drivers for manufacturing overhead costs are:

1. direct manufacturing labor-hours
2. setup labor-hours
3. budgeted labor-hours
4. both a and b

MCQ 153: The difference between actual result and corresponding amount of flexible budget, on the basis of actual level of output is classified as:

1. sales mix variance
2. sales volume variance
3. flexible budget variance
4. static budget variance

MCQ 154: A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as:

1. accounting period costing system
2. process costing system
3. job costing system
4. none of above

MCQ 155: The units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate:

1. normal spoilage rates
2. abnormal spoilage rates
3. normal scrap rates
4. abnormal scrap rates