Correct Answer:
B. A period cost
Variable costing charges fixed manufacturing overhead to the period in which it is incurred.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Under variable (direct) costing, fixed manufacturing overhead is treated as:
Related MCQs
PIFRA stands for:
A.
Project to Improve Financial Reporting and Auditing
B.
Public Institution for Revenue Administration
C.
Planning Institute for Fiscal Reform and Accounting
D.
Project for Increasing Finance and Revenue Assessment
Correct answer is:
A. Project to Improve Financial Reporting and Auditing
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The DuPont identity expresses ROE as:
A.
Net profit margin x total asset turnover x equity multiplier
B.
Gross margin x current ratio x debt ratio
C.
Sales / assets only
D.
EPS divided by dividend per share
Correct answer is:
A. Net profit margin x total asset turnover x equity multiplier
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The ability-to-pay principle of taxation says that:
A.
People should pay tax according to benefits received
B.
Everyone pays the same amount
C.
People with higher income or wealth should pay more tax
D.
Only businesses pay tax
Correct answer is:
C. People with higher income or wealth should pay more tax
Do you agree with this answer?
A tax expenditure is:
A.
Money spent on collecting taxes
B.
Salaries of tax officers
C.
Tax refunds paid by mistake
D.
Revenue forgone by government through exemptions, deductions and concessions
Correct answer is:
D. Revenue forgone by government through exemptions, deductions and concessions
Do you agree with this answer?
Line-item budgeting is a budget format that:
A.
Lists expenditure by inputs such as salaries and supplies
B.
Links spending to results
C.
Starts from zero each year
D.
Excludes salaries
Correct answer is:
A. Lists expenditure by inputs such as salaries and supplies
Do you agree with this answer?
Total variable cost:
A.
Remains constant regardless of activity
B.
Changes in direct proportion to changes in activity level
C.
Decreases as activity increases
D.
Is always zero
Correct answer is:
B. Changes in direct proportion to changes in activity level
Do you agree with this answer?
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