In two of the methods of costing, the operating income will be different if the __________?

Related Mcqs:

1. If the target operating income is $84000 and contribution margin per unit is $600, then number of units must be sold to earn targeted operating income, will be __________?

   A. 100 units
   B. 110 units
   C. 120 units
   D. 140 units

2. In operating income strategic analysis, the strategic component which measures change in operating income, attributed for change in price of outputs and inputs is classified as __________?

   A. internal process component
   B. growth component
   C. price recovery component
   D. productivity component

3. The number of units, must be sold to earn targeted operating income are calculated by dividing the total fixed cost operating income and ____________?

   A. marginal cost per unit
   B. variable cost per unit
   C. fixed cost per unit
   D. contribution margin per unit

4. 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 ___________?

   A. 65 units
   B. 75 units
   C. 95 units
   D. 85 units

5. In operating income strategic analysis, a component which measures the change in operating income attributed to the change in output quantity is classified as ________?

   A. internal process component
   B. growth component
   C. price recovery component
   D. productivity component

6. If total production is 25000 units and target annual operating income is $300000, then target operating income per unit would be ____________?

   A. $15
   B. $12
   C. $16
   D. $18

7. The target operating income is multiplied to tax rate and then subtracted from target operating income to calculate _____________?

   A. target net cost
   B. target net income
   C. target net gain
   D. target net loss

8. The costing system, which is a combination of process costing and job costing system, is classified as __________?

   A. weighted costing system
   B. average costing system
   C. hybrid costing system
   D. double costing system

9. The normal costing and standard costing methods are used in decisions such as ___________?

   A. investment decisions
   B. pricing decisions
   C. product mix decisions
   D. Both B and C

10. If the production is less than sales, then operating income under variable costing is __________?

    A. negative income value
    B. lower income
    C. higher income
    D. zero dividends