If the revenues are $25000 and through put contribution is $12000, then direct material cost of goods sold will be ____________?
Correct answer: D. $13,000
- A. $57,000
- B. $37,000
- C. $47,000
- D. $13,000
Explanation
Throughput contribution equals sales revenue minus direct material cost, so direct material cost is $25,000 − $12,000 = $13,000. Throughput accounting treats direct material as the main truly variable cost.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
Throughout the period costs, costing methods are treated as ___________?
The difference between absorption and variable costing is the accountability of ___________?
The method of inventory costing, in which all variable and fixed manufacturing cost is considered as inventoriable cost can be termed as __________?
If the capacity utilization and its cost are fixed in product costing, the capacity management is ___________?
If the inventory level decreases then operating income, under variable costing, will be reported ___________?
If the budgeted fixed cost is $26000, per unit budgeted denominator level is 1300 units, then budgeted fixed cost will be ___________?