MCQs 2020 - Costing U.5-2 | Take the Quiz

Q1 Which of the following costs is not included while computing unit product cost under variable costing?

A. Direct materials cost

B. Direct labor cost

C. Variable manufacturing overhead cost

D. Fixed manufacturing overhead cost

Q2 The reason of difference in net operating income under variable costing and absorption costing is:

A. Change in selling price

B. Change in fixed cost

C. Change in inventory

D. Change in variable cost

Q3 The reports generated by variable costing system of a company is mostly used by:

A. Lenders and creditors

B. Internal management

C. Government and tax agencies

D. Investors and stockholders

Q4 Variable costing is also known as:

A. Direct costing

B. Absorption costing

C. Marginal costing

D. A & C

Q5 Absorption costing is also known as:

A. Full Costing

B. Managerial accounting

C. Operational costing

D. A & B

Q6 The reports generated by absorption costing (also known as full costing) is used by:

A. creditors

B. investors

C. Government agencies

D. All of the above

Q7 A company manufactures 1,000 units of product X per year . The cost data is given below: Direct materials: $5 per unit Direct labor: $4 per unit ,Total Variable manufacturing overhead: $3000 and Fixed manufacturing overhead: $6,000 per year Based on the above information, the variable cost to manufacture one unit of product X is:

A.$3

B.$9

C.$12

D.$8

MCQs 2020 - Costing U.5-2

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