An approach used for choosing capacity level, having no beginning inventory, is classified as __________? April 20, 2025 by admin A. write off variance approach B. write in variance approach C. adjusted variance approach D. unadjusted variance approach
If the production is less than sales so, an operating income under absorption costing will be called ________? April 20, 2025 by admin A. higher income B. zero dividends C. negative income value D. lower income
If target operating income is $38000, contribution margin per unit is $400, then the number of units must be sold to earn targeted operating income will be ___________? April 20, 2025 by admin A. 65 units B. 75 units C. 95 units D. 85 units
The fixed rate of calculation is based on the _________? April 20, 2025 by admin A. capacity used B. capacity available C. capacity utilization D. downward demand
An approach in which restating the amounts, in general ledgers by using actual cost rates, is classified as __________? April 20, 2025 by admin A. unadjusted cost approach B. adjusted allocation rate approach C. unadjusted allocation approach D. adjusted cost approach
The capacity utilization of the business, to satisfy average customer’s demand, for current budget period of time is termed as ___________? April 20, 2025 by admin A. master budget capacity utilization B. finite cost utilization C. infinite cost utilization D. infinite budget capacity utilization
An approach in which, the over allocated and under allocated is spread in, ending balance of finished goods control, is called ___________? April 20, 2025 by admin A. allocation approach B. unadjusted approach C. proration approach D. adjusted approach
The budgeted fixed manufacturing cost for per unit, which is used to measure per unit cost of supplying is called ___________? April 20, 2025 by admin A. indirect labor B. capacity C. raw material D. direct labor
In absorption costing, the contribution margin per unit, fixed operating and manufacturing costs are all the dependents of ___________? April 20, 2025 by admin A. profit point B. breakeven point C. production point D. cost point
An income statement in absorption costing follows the format of ___________? April 20, 2025 by admin A. inventory margin B. sales margin C. Gross margin D. production margin
