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Capacity Analysis and Inventory Costing – MCQs

107 questions. Click to practice.

Correct options are highlighted when revealed.

1.Given a fixed manufacturing budget of $124,000 and a fixed cost of $124 per unit, what is the planned number of units to be produced?

2.When determining the budgeted fixed manufacturing cost per unit, using practical capacity as the ___________ helps prevent the need to recalculate demand. Which term correctly fills the blank?

3.In actual costing, multiplying the actual quantity of inputs by their actual prices results in the calculation of which cost type?

4.Given total sales of $250,000, a beginning inventory of $25,000, and an ending inventory of $25,000, what is the total production amount?

5.Given that the direct material cost of goods sold amounts to $7,500 and the contribution margin is $15,650, what is the total revenue?

6.What do you obtain when you divide the total budgeted fixed manufacturing cost by the fixed manufacturing cost per unit?

7.Which type of decision is typically not made by managers involved in capacity planning?