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

Related Mcqs:

1. 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

2. 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

3. In manufacturing companies, the variable and absorption costing are methods, which are used in __________?

   A. recording of liabilities
   B. costing of current assets
   C. costing of machinery
   D. costing of inventories

4. The production volume variance under absorption costing:

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

5. 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

6. The difference between absorption and variable costing is the accountability of ___________?

   A. direct overhead
   B. indirect overhead cost
   C. fixed manufacturing cost
   D. variable manufacturing cost

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

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

8. The production volume variance under variable costing is ______________?

   A. must
   B. not a must
   C. non-inventoriable
   D. inventoriable

9. If an actual variable quantity is 50, the actual and budgeted overhead cost of allocation is $7550 and $4500 respectively, then the variable overhead spending variance could be __________?

   A. $182,500
   B. $152,500
   C. $162,500
   D. $172,500

10. If an actual variable quantity is 70, the actual and budgeted overhead cost of allocation is $8650 and $3500 respectively, then the variable overhead spending variance will be __________?

    A. $660,500
    B. $560,500
    C. $460,500
    D. $360,500