An approach used for choosing capacity level, having no beginning inventory, is classified as __________?
A. write off variance approach B. write in variance approach C. adjusted variance approach D. unadjusted variance approach
Accounting MCQs with Answers
If the production is less than sales so, an operating income under absorption costing will be called ________?
A. higher income B. zero dividends C. negative income value D. lower income
If target operating income is $38000, contribution margin per unit is $400, then the number of units must be sold to earn targeted operating income will be ___________?
A. 65 units B. 75 units C. 95 units D. 85 units
The fixed rate of calculation is based on the _________?
A. capacity used B. capacity available C. capacity utilization D. downward demand
An approach in which restating the amounts, in general ledgers by using actual cost rates, is classified as __________?
A. unadjusted cost approach B. adjusted allocation rate approach C. unadjusted allocation approach D. adjusted cost approach
The capacity utilization of the business, to satisfy average customer’s demand, for current budget period of time is termed as ___________?
A. master budget capacity utilization B. finite cost utilization C. infinite cost utilization D. infinite budget capacity utilization
An approach in which, the over allocated and under allocated is spread in, ending balance of finished goods control, is called ___________?
A. allocation approach B. unadjusted approach C. proration approach D. adjusted approach
The budgeted fixed manufacturing cost for per unit, which is used to measure per unit cost of supplying is called ___________?
A. indirect labor B. capacity C. raw material D. direct labor
In absorption costing, the contribution margin per unit, fixed operating and manufacturing costs are all the dependents of ___________?
A. profit point B. breakeven point C. production point D. cost point
An income statement in absorption costing follows the format of ___________?
A. inventory margin B. sales margin C. Gross margin D. production margin