All Free Accounting MCQs with Answers
Every Accounting question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
1,971 questions · page 35 of 99
- A. Gross weighted margin
- B. weighted average revenue
- C. weighted average cost
- D. weighted average conversion cost
Explanation: Weighted-average cost per equivalent unit is calculated by dividing total costs assigned to work in process and current production by…
Correct answer: weighted average cost- A. conversion expense costing system
- B. inventory costing system
- C. process costing system
- D. job costing systemAccounting & Auditing
Explanation: A process costing system accumulates and classifies costs by production process or department, which is appropriate when similar units are…
Correct answer: process costing system- A. summarize flow of output
- B. compute output in units
- C. summarize total costs
- D. compute cost for each equivalent unit
Explanation: The usual process-costing sequence is to trace physical flow, calculate equivalent units, summarize total costs, compute cost per…
Correct answer: summarize total costs- A. $10
- B. $100
- C. $1,000
- D. $1,200Finance
Explanation: Weighted-average cost per equivalent unit equals total cost divided by equivalent units: $350,000 ÷ 3,500 = $100.
Correct answer: $100- A. $16
- B. $60
- C. $6
- D. $26
Explanation: Unit cost is found by dividing total production cost by output: $30,000 ÷ 5,000 units = $6 per unit.
Correct answer: $6- A. summarize total costs
- B. compute cost for each equivalent unit
- C. summarize flow of output
- D. compute output in units
Explanation: After identifying the physical flow of production, the second process-costing step is to compute the output in equivalent units.
Correct answer: compute output in units- A. weighted average method
- B. net present value method
- C. Gross production method
- D. net present value method
Explanation: The weighted-average method combines beginning work-in-process costs with current-period costs and divides them by equivalent units…
Correct answer: weighted average method- A. summarize total costs
- B. compute cost for each equivalent unit
- C. summarize flow of output
- D. compute output in unitsGet Executive Coaching
Explanation: After summarizing output, computing equivalent units, and summarizing total costs, the fourth step is to compute the cost per equivalent…
Correct answer: compute cost for each equivalent unit- A. allocate separable costs
- B. allocate joint costs
- C. compute gross margin
- D. assign total cost to completed unitsHire An Accountant
Explanation: The fifth process-costing step assigns the total cost to completed units and the ending work in process.
Correct answer: assign total cost to completed unitsHire An Accountant- A. partial work costs
- B. transferred-in costs
- C. transferred-out costs
- D. weighted average costsCompare Credit Cards
Explanation: Transferred-in costs are the costs brought into a department from the preceding department after processing there.
Correct answer: transferred-in costs- A. 1800 units
- B. 2300 units
- C. 10300 units
- D. 1500 units
Explanation: Under the equivalent-unit flow equation, beginning WIP plus current-period work equals completed units plus ending WIP.
Correct answer: 2300 units- A. 1800 units
- B. 1500 units
- C. 1300 units
- D. 1500 units
Explanation: Equivalent units completed during the current period equal beginning WIP plus work done during the period minus ending WIP.
Correct answer: 1300 units- A. transferred-in costs
- B. transferred-out costs
- C. FIFO costs
- D. LIFO costsCompare Credit Cards
Explanation: Costs incurred by a previous department become transferred-in costs when the partially completed product enters the next department.
Correct answer: transferred-in costs- A. cost of indirect labor
- B. cost of direct labor
- C. cost of direct material
- D. unit costs
Explanation: Dividing total production cost by the number of output units gives the cost per unit, commonly called unit cost.
Correct answer: unit costs- A. accounting period costing system
- B. process costing system
- C. job costing system
- D. none of aboveHire An Accountant
Explanation: Process costing assigns accumulated costs across large quantities of similar or identical units, producing an average unit cost.
Correct answer: process costing system- A. summarize flow of output
- B. compute output in units
- C. summarize total costs
- D. compute cost for each equivalent unitGet Executive Coaching
Explanation: The first step is to summarize the physical flow of output, including units to account for and units accounted for.
Correct answer: summarize flow of output- A. partial inventory costing method
- B. current period inventory method
- C. Last-in, first-out method
- D. First-in, first-out method
Explanation: FIFO process costing completes the beginning inventory first, then accounts for work started and completed during the current period.
Correct answer: First-in, first-out method- A. conversion process
- B. operation
- C. hybridization
- D. both a and b
Explanation: An operation is a standardized procedure repeated on different materials to produce different finished products.
Correct answer: operation- A. incremental costing system
- B. split off costing system
- C. inventoriable costing system
- D. operation costing systemAccounting & Auditing
Explanation: Operation costing is a hybrid of job-order and process costing used for batches of similar but non-identical products.
Correct answer: operation costing systemAccounting & Auditing- A. weighted costing system
- B. average costing system
- C. hybrid costing system
- D. double costing system
Explanation: A hybrid costing system combines job costing for identifiable batches or jobs with process costing for standardized production stages.
Correct answer: hybrid costing system