911. While ascertaining gross profit under absorption costing, only that portion of manufacturing overheads is deducted from sales revenue which is associated with the goods sold.
A. True
B. False

912. Under absorption costing among fixed expenses
A. Fixed manufacturing expenses are included in unit cost
B. Fixed non-manufacturing expenses are included in unit cost
C. Both a and b
D. None of the above

913. Absorption costing is used for
A. Price determination on basis of full cost
B. Solution of separation of costs
C. Calculation of gross and net profit
D. All of the above

914. Absorption costs helps in
A. Difference between product cost and period cost
B. Charged of fixed factory overheads on inventory
C. Both a and b
D. None of the above

915. Fixed expenses decrease per unit with the increases in production and increases per unit with the decrease in production.
A. True
B. False

916. Marginal costs is taken as equal to
A. Prime Cost plus all variable overheads
B. Prime Cost minus all variable overheads
C. Variable overheads
D. None of the above

917. If total cost of 100 units is Rs 5000 and those of 101 units is Rs 5030 then increase of Rs 30 in total cost is
A. Marginal cost
B. Prime cost
C. All variable overheads
D. None of the above

918. Marginal cost is computed as
A. Prime cost + All Variable overheads
B. Direct material + Direct labor + Direct Expenses + All variable overheads
C. Total costs – All fixed overheads
D. All of the above

919. Marginal costing is also known as
A. Direct costing
B. Variable costing
C. Both a and b
D. None of the above

920. While computation of profit in marginal costing
A. Total marginal cost is deducted from total sales revenues
B. Total marginal cost is added to total sales revenues
C. Fixed cost is added to contribution
D. None of the above

NOTE
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