ACMC_S3 2023-2024

What is other name of absorption costing?

• Variable costing

• Fixed costing

• Full costing

• Product costing

Absorption costing and marginal costing are alternative methods of determining unit product costs that effects____?____ and___?___.

• Inventory valuation and cost material

• Operating income and operating expenses

• Inventory valuation and operating income

• Operating income and labour cost

What is the main different in treatment of product cost between marginal costing and absorption costing?

• Fixed selling and distribution

• Fixed administration cost

• Fixed manufacturing overhead

• Variable manufacturing overhead

Which statement is not true?

• Marginal costing include only the variable manufacturing costs

• Absorption costing include the variable manufacturing cost

• Marginal costing is classified cost according to behavior.

• Absorption costing is reported for internal user.

In a period where opening inventories were 15,000 units and closing inventories were 20,000 units, a firm had a profit of RM130,000 using absorption costing. If the fixed overhead absorption rate was RM8 per unit, the profit using marginal costing would be___?___.

• RM90,000

• RM130,000

• RM170,000

• RM150,000

In a period, Opening inventory is 25,000 units, closing inventory 10,000 units and sales 150,000 units. Find the number of units produced during the period.

• 135,000 units

• 165,000 units

• 185,000 units

• 115,000 units

Consider the following information for unit produced and sold is 1,000 units, Direct material cost is RM5 per unit, Direct labour cost RM4 per units, variable manufacturing overhead cost RM3 per unit and fixed manufacturing overhead cost RM4,000. Based on the information, the variable cost of good sold is___?___.

• RM16,000

• RM9,000

• RM5,000

• RM12,000

Consider the following information: net operating income under variable costing RM25,000, Increase in inventory during the period 2,000 units, fixed manufacturing overhead RM50,000 and number of units produced during the period 10,000 units. Calculate the net operating income under absorption costing?

• RM 15,000

• RM 35,000

• RM 75,000

• RM 10,000

Consider the following information: Number of units produced 2,000 units, Direct material cost RM8 per unit, Direct labour cost RM12 per unit, Variable manufacturing overhead RM6 per unit, Fixed manufacturing overhead RM8,000 per unit, Variable selling and administrative cost RM2 per unit and fixed selling and administrative cost RM6,000. What is the unit product cost under absorption costing system?

• RM26

• RM30

• RM28

• RM32

A company had opening inventory of 48,500 units and closing inventory of 45,500 units. Profit based on marginal costing were RM315,250 and on absorption costing were RM288,250. What is the fixed overhead absorption rate per unit?

• RM 6.34

• RM 6.50

• RM 9.00

• RM9.34