Test your knowledge with this set of multiple choice questions (MCQ) covering the topic of variable costing. Answering every question correctly will assist your exam preparation, interviews, and professional work. To begin, just click on the "Start Quiz" button. 1. Direct materials, direct labor, fixed overhead Direct materials, direct labor, variable overhead Direct materials, direct labor, variable overhead, fixed overhead Only direct materials and direct labor See answer 2. Direct materials, direct labor, fixed overhead Direct materials, direct labor, variable overhead Direct materials, direct labor, variable overhead, fixed overhead Only direct materials and direct labor See answer 3. Indirect costing Direct costing Marginal costing Both (2) and (3) See answer 4. $11 $12 $14 $15 See answer 5. $11 $12 $14 $15 See answer 6. Direct materials and direct labor Fixed and variable portions of manufacturing overhead Fixed manufacturing overhead only Variable manufacturing overhead only See answer 7. Absorption costing distinguishes between fixed and variable product costs Absorption costing is well suited to CVP analysis techniques Absorption costing provides useful tools to managers for planning and control To generate data for CVP analysis, considerable time need to be invested to rework income statements constructed under absorption costing See answer 8. Higher than under variable costing Lower than under variable costing Equal to variable costing Sometimes higher and sometimes lower than variable costing See answer 9. No change occurs in inventories for either absorption costing or variable costing The use of absorption costing produces a higher net income than the use of variable costing The use of absorption costing produces a lower net income than the use of variable costing The use of absorption costing causes the inventory value to increase more than it would through the use of variable costing See answer 10. No change occurs in inventories for either absorption costing or variable costing The use of absorption costing produces a higher net income than the use of variable costing The use of absorption costing produces a lower net income than the use of the variable costing The use of absorption costing causes the inventory value to increase more than it would through the use of variable costing See answer 11. No change occurs in inventories for either absorption costing or variable costing The use of absorption costing produces a higher net income than the use of variable costing The use of absorption costing produces a lower net income than the use of variable costing The use of absorption costing causes the inventory value to increase more than it would through the use of variable costing See answer View Results Next Quiz: Cost, Volume, and Profit Analysis MCQs Variable Costing MCQs FAQs What factors should be considered when making decisions in accounting? When making decisions in accounting, it is essential to consider all relevant factors. Some of the factors that may be considered include the company’s financial position, Cash Flow, profitability, and business strategy. What are some common accounting decisions? In accounting, decision-making is the process of choosing between two or more courses of action to achieve the desired outcome. Factors that should be considered when making decisions include the company’s financial position, Cash Flow, profitability, and business strategy. Accountants use the information to make decisions by analyzing data and trends to make informed decisions to help the company achieve its goals. How do accountants make decisions? Accountants use the information to make decisions by analyzing data and trends. This information can come from Financial Statements, internal reports, surveys, and other sources. By analyzing this data, accountants can make informed decisions to help the company achieve its goals. What are some common accounting decision-making models? Common accounting decision-making models include the rational decision model, the incremental decision model, and the satisficing decision model. Each of these models has its own set of steps that should be followed when deciding. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
Test your knowledge with this set of multiple choice questions (MCQ) covering the topic of variable costing. Answering every question correctly will assist your exam preparation, interviews, and professional work. To begin, just click on the "Start Quiz" button. 1. Direct materials, direct labor, fixed overhead Direct materials, direct labor, variable overhead Direct materials, direct labor, variable overhead, fixed overhead Only direct materials and direct labor See answer 2. Direct materials, direct labor, fixed overhead Direct materials, direct labor, variable overhead Direct materials, direct labor, variable overhead, fixed overhead Only direct materials and direct labor See answer 3. Indirect costing Direct costing Marginal costing Both (2) and (3) See answer 4. $11 $12 $14 $15 See answer 5. $11 $12 $14 $15 See answer 6. Direct materials and direct labor Fixed and variable portions of manufacturing overhead Fixed manufacturing overhead only Variable manufacturing overhead only See answer 7. Absorption costing distinguishes between fixed and variable product costs Absorption costing is well suited to CVP analysis techniques Absorption costing provides useful tools to managers for planning and control To generate data for CVP analysis, considerable time need to be invested to rework income statements constructed under absorption costing See answer 8. Higher than under variable costing Lower than under variable costing Equal to variable costing Sometimes higher and sometimes lower than variable costing See answer 9. No change occurs in inventories for either absorption costing or variable costing The use of absorption costing produces a higher net income than the use of variable costing The use of absorption costing produces a lower net income than the use of variable costing The use of absorption costing causes the inventory value to increase more than it would through the use of variable costing See answer 10. No change occurs in inventories for either absorption costing or variable costing The use of absorption costing produces a higher net income than the use of variable costing The use of absorption costing produces a lower net income than the use of the variable costing The use of absorption costing causes the inventory value to increase more than it would through the use of variable costing See answer 11. No change occurs in inventories for either absorption costing or variable costing The use of absorption costing produces a higher net income than the use of variable costing The use of absorption costing produces a lower net income than the use of variable costing The use of absorption costing causes the inventory value to increase more than it would through the use of variable costing See answer View Results