Inventory Costing Manufacturing Companies Multiple Choice Questions (MCQ) PDF Download

MCQ 1: If the production is less than sales so, an operating income under absorption costing will be called

1. higher income
2. zero dividends
3. negative income value
4. lower income

MCQ 2: If the inventory level decreases then operating income, under variable costing, will be reported

1. more
2. less
3. zero
4. none of above

MCQ 3: If the contribution margin per unit is $5000, the selling price is $1500 and the variable manufacturing cost per unit is $1200, then per unit cost of marketing will be

1. $4,200
2. $2,300
3. $7,700
4. $6,700

MCQ 4: The difference between absorption and variable costing is the accountability of

1. direct overhead
2. indirect overhead cost
3. fixed manufacturing cost
4. variable manufacturing cost

MCQ 5: The method of inventory costing, in which all variable and fixed manufacturing cost is considered as inventoriable cost can be termed as

1. absorption costing
2. variable costing
3. fixed costing
4. manufacturing cost