Variable and Fixed Overhead Costs MCQ with Answers PDF Download – Test 36

MCQ 176: If an actual variable quantity is 50, the actual and budgeted overhead cost of allocation is $7550 and $4500 respectively, then the variable overhead spending variance could be:

1. $182,500
2. $152,500
3. $162,500
4. $172,500

MCQ 177: The total cost incur by customer to use, acquire, maintain and dispose service or product is classified as:

1. budgeted life cycle
2. targeted life cycle
3. customer life cycle
4. operating life cycle

MCQ 178: An organization's ability to offer market offerings at lower prices, in comparison with its competitors is known as:

1. inelastic demand
2. product differentiation
3. cost leadership
4. elastic demand

MCQ 179: If cost is eliminated, then reducing the perceived usefulness that customers can obtain by using the market offering will come under:

1. designed-in costs
2. locked-in costs
3. value added cost
4. non-value added cost

MCQ 180: The decisions made by team of individuals or single person, whether to outsource the products or in-source are classified as:

1. demand or supply decisions
2. make or buy decisions
3. relevant or irrelevant decision
4. idle or busy decisions