Inventory Related Relevant Costs Quiz Questions and Answers PDF - 173

MCQ 861: If the required rate of return is 12% and the per unit cost of units purchased is $35, then the relevant opportunity cost of capital will be

1. $6.20
2. $7.20
3. $4.20
4. $5.20

MCQ 862: In a given scenario, if the cost is considered as indirect cost then independent variable will be considered as

1. demand allocation base
2. supply allocation base
3. cost allocation base
4. price allocation base

MCQ 863: The conversion cost is subtracted from direct manufacturing labor cost to calculate the

1. direct overheads
2. overhead costs
3. factory overhead
4. manufacturing overhead cost

MCQ 864: The price charged by one subunit to supply products or services to another unit is called

1. subunit autonomy cost
2. transfer price
3. performance prices
4. effort cost

MCQ 865: Static budget variance for operating income is added in to static budget amount to calculate

1. actual result
2. expected results
3. expected cost
4. expected revenue