Variable Costing MCQs November 7, 2020November 21, 2018 by Abbas Ahmad Please enter your email: 1. Using absorption costing, a unit of product includes which costs? Direct materials, direct labor, fixed overhead Direct materials, direct labor, variable overhead Direct materials, direct labor, variable overhead, fixed overhead Only direct materials and direct labor 2. Using variable costing, a unit of product includes which costs? Direct materials, direct labor, fixed overhead Direct materials, direct labor, variable overhead Direct materials, direct labor, variable overhead, fixed overhead Only direct materials and direct labor 3. Variable costing is also known as: Indirect Costing Direct Costing Marginal Costing Both (B) and (C) 4. Using the following data, determine unit product cost under absorption costing. $11 $12 $14 $15 5. Using the following data, determine unit product cost under variable costing. $11 $12 $14 $15 6. The difference between unit product cost under absorption costing as compared to variable costing is: Direct materials and direct labor Fixed and variable portions of manufacturing overhead Fixed manufacturing overhead only Variable manufacturing overhead only 7. Variable costing is attractive to managers as an alternative to absorption costing because: Absorption costing makes distinctions between fixed and variable product costs Absorption costing is well suited to CVP analysis techniques Absorption costing provides useful tools to managers for planning and control To generate data for CVP analysis, considerable time would have to be invested to rework income statements constructed under absorption costing 8. Product cost under absorption costing is characteristically: Higher than under variable costing Lower than under variable costing Equal to variable costing Higher sometimes and lower sometimes than variable costing 9. When production is equal to sales, which of the following is true? No change occurs to inventories for either absorption costing or variable costing methods The use of absorption costing produces a higher net income than the use of variable costing The use of absorption costing produces a lower net income than the user of variable costing The use of absorption costing cause inventory value to increase more than they would through the use of variable costing 10. When production is greater than sales, which of the following is true? No change occurs to inventories for either absorption costing or variable costing methods The use of absorption costing produces a higher net income than the use of variable costing The use of absorption costing produces a lower net income than the use of the variable costing The use of absorption costing causes inventory value to increase more than they would through the use of variable costing 11. When production is less than sales, which of the following is true? No change occurs to inventories for either absorption costing or variable costing methods The use of absorption costing produces a higher net income than the use of variable costing The use of absorption costing produces a lower net income than the use of variable costing The use of absorption costing causes inventory value to increase more than they would through the use of variable costing Loading … Next Quiz: Cost, Volume and Profit Analysis MCQs Related posts: Marginal Costing Practical Questions and Answers Process Costing MCQs Overhead Costing MCQs Labour Costing MCQs Material Costing MCQs
dear sir no 11 answer in this The use of absorption costing produces a lower net income than the use of variable costing that was wrong Reply
dear sir
no 11 answer in this
The use of absorption costing produces a lower net income than the use of variable costing
that was wrong