In variable costing, an effect on cost volume profit relationship is driven by __________?

Related Mcqs:

1. In absorption costing, an effect on cost volume profit relationship is driven by __________?

   A. unit level of production
   B. unit level of sales
   C. chosen denominator level
   D. all of above

2. Considering the relationship of variables, the relationship in which the activity cost is included in the dependent variable, which has similar cost driver is classified as __________?

   A. heterogeneous relationship
   B. extreme relationship
   C. no homogeneous relationship
   D. homogeneous relationship

3. In variable costing, the change in operating income is driven only by changes in _________?

   A. quantity of units sold
   B. quantity of units manufactured
   C. increase in units sold
   D. decrease in units sold

4. In variable costing, the variable manufacturing and fixed manufacturing cost focus on __________?

   A. distinction
   B. similarities
   C. increase in units
   D. decrease in units

5. 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

6. 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

7. 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

8. The method of inventory costing, in which all variable and fixed manufacturing cost is considered as inventoriable cost can be termed as __________?

   A. absorption costing
   B. variable costing
   C. fixed costing
   D. manufacturing cost

9. In dependent variable cost pool, the relationship between individual cost items and cost drivers can be classified as ___________?

   A. non homogeneous relationship
   B. homogeneous relationship
   C. an internal relationship
   D. an extreme relationship

10. In the cause and effect relationship between cost level and cost driver, the inflationary price effects are removed by dividing cost through _______________?

    A. price index
    B. cost index
    C. profit index
    D. cost driver index