In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are

Related Mcqs:

1. The cost of manufactured goods is added into beginning inventory, and the amount equal to cost of sold goods are added into ___________?

   A. minus beginning inventory
   B. minus ending inventory
   C. plus ending inventory
   D. plus beginning inventory

2. The quantity of manufactured goods are sold at which the total cost equal, is known as _____________?

   A. breakeven point
   B. cost point
   C. revenue point
   D. quantity point

3. The partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called ____________?

   A. spoilage
   B. rework
   C. scrap
   D. equivalence

4. 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

5. The spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as __________?

   A. proration approach
   B. appreciation approach
   C. depreciation approach
   D. adjusted approach

6. All the costs, which are assigned to manufactured products for specific calculations are classified as ___________?

   A. contracting costs
   B. product cost
   C. government costs
   D. marketing costs

7. The costs that are incurred to find manufactured products, which does not meet specifications are called ____________?

   A. prevention costs
   B. external failure costs
   C. appraisal costs
   D. internal failure costs

8. 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

9. 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

10. The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as ___________?

    A. carrying costs
    B. purchasing costs
    C. stock-out costs
    D. ordering costs