If the production is less than sales so, an operating income under absorption costing will be called ________?

Related Mcqs:

1. If the production is greater than sales, then operating income under absorption costing is _________?

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

2. 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

3. If the production is greater than sales, then operating income under variable costing is _________?

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

4. 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

5. In absorption costing, the managers may increase operating income by producing ____________?

   A. more sales
   B. more inventory units
   C. less inventory units
   D. less sales

6. If the fixed manufacturing cost expenses are under variable costing and are not expensed in absorption costing, it is resulting in _________?

   A. production exceeds breakeven sales
   B. breakeven sales exceeds production
   C. price exceeds cost
   D. cost exceeds price

7. 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

8. The production volume variance under absorption costing:

   A. must be inventoriable
   B. must exist
   C. must not exist
   D. non-inventoriable

9. Under absorption costing, the magnitude for favorable volume production variance is affected by the choice of _________?

   A. unplanned level
   B. budgeting level
   C. numerator level
   D. denominator level

10. 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