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

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 so, an operating income under absorption costing will be called ________?

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

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 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. 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

6. 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

7. 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

8. The variance which is included in absorption costing, but not in variable costing is classified as __________?

   A. production volume variance
   B. cost volume variance
   C. profit volume variance
   D. fixed cost variance

9. 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

10. 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