Inventory Costing Methods Quiz PDF: Questions and Answers - 171

MCQ 851: The capacity of the operations in company, which does not consider shutdown periods and interruptions, in operations is considered as

1. normal capacity
2. theoretical costing
3. standard capacity
4. actual capacity

MCQ 852: If the difference in costs is $9000 and the difference in machine hours is $15000, then slope coefficient would be

1. 1.24
2. 0.24
3. 0.6
4. 1.667

MCQ 853: The cost which is excluded from inventoriable costs in variable costing method is called

1. variable factory overheads
2. fixed manufacturing cost
3. variable manufacturing costs
4. fixed factory overheads

MCQ 854: If an actual selling price is $400, an actual result is $250 and an actual units sold are 500, then the selling price variance will be

1. $45,000
2. $55,000
3. $75,000
4. $65,000

MCQ 855: The cost of abnormal spoilage is not treated as

1. conversion costs
2. sunk costs
3. inventoriable costs
4. non inventoriable costs