Inventory Costing Methods Quiz Questions and Answers PDF - 21

MCQ 101: The fixed rate of calculation is based on the

1. capacity used
2. capacity available
3. capacity utilization
4. downward demand

MCQ 102: The degree which predetermines target or income achieved, can be grouped under

1. growth evaluation
2. performance evaluation
3. efficiency
4. effectiveness

MCQ 103: An under allocated indirect cost is also called

1. under applied indirect cost
2. under absorbed indirect cost
3. absorbed indirect cost
4. both a and b

MCQ 104: An implementation of activity based costing would be possible only if the accountants find

1. goodness of each activity
2. handling of each activity
3. cost driver for each activity
4. cost object for each activity

MCQ 105: The cost, which is related to specific cost object and economically traceable, will be classified as

1. direct cost
2. indirect cost
3. line cost
4. staff cost