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 37 of 99
- A. overhead flexible budget variance
- B. overhead fixed budget variance
- C. overhead flexible cost variance
- D. overhead flexible price variance
Explanation: The difference between actual variable overhead and the variable overhead allowed by the flexible budget is the variable overhead…
Correct answer: overhead flexible budget variance- A. machine hours
- B. flexible hours
- C. variable hours
- D. fixed hours
Explanation: Machine hours are a common cost-allocation base when machine use drives overhead consumption.
Correct answer: machine hours- A. constant costing
- B. standard costing
- C. unit costing
- D. batch costingGet Executive Coaching
Explanation: Standard costing applies predetermined standard price or rate and quantity amounts to actual output, allowing actual results to be…
Correct answer: standard costing- A. manufacturing costs incurred
- B. variable costs incurred
- C. fixed costs incurred
- D. actual costs incurredCompare Credit Cards
Explanation: The flexible-budget amount plus an unfavorable variable-overhead flexible-budget variance gives the actual variable overhead incurred.
Correct answer: actual costs incurredCompare Credit Cards- A. fixed batch cost
- B. variable batch cost
- C. variable overhead cost
- D. fixed overhead cost
Explanation: Plant depreciation, plant-manager salaries and plant leasing costs do not normally change with short-term production volume.
Correct answer: fixed overhead cost- A. anticipated budgeting
- B. number budgeting
- C. predict budgeting
- D. kaizen budgeting
Explanation: Kaizen budgeting incorporates continuous, incremental improvements expected during the budget period into budgeted costs and revenues.
Correct answer: kaizen budgeting- A. financial budget
- B. capital budget
- C. cash flows budget
- D. balanced budgetSearch Public Records
Explanation: A financial budget covers capital expenditure and projected financial statements, including the cash-flow statement and balance sheet.
Correct answer: financial budget- A. analysis of batches
- B. analysis of batches
- C. analysis of products
- D. making predictions about future
Explanation: After analysing products and batches, the budgeting process makes predictions about future conditions such as sales, costs and production…
Correct answer: making predictions about future- A. $5,000
- B. $35,000
- C. $15,000
- D. $45,000
Explanation: The manufacturing overhead budget combines indirect manufacturing labour, power, maintenance and supplies: $20,000 + $5,000 + $10,000 =…
Correct answer: $35,000- A. implementing income
- B. implementing the decision
- C. efficient implementation
- D. effective implementationMonitor Fiscal Updates
Explanation: Once operating decisions have been developed, the final step is to implement those decisions through the operating budget.
Correct answer: implementing the decision- A. bill of materials
- B. bill of sequence
- C. bill of detail
- D. bill of raw materials
Explanation: A bill of materials lists the raw materials required, their quantities and often the sequence or structure in which they are used to make…
Correct answer: bill of materials- A. focused statement
- B. slack statement
- C. budgeted income statement
- D. operating budget
Explanation: An operating budget includes the budgeted income statement together with supporting schedules such as sales, production, direct materials…
Correct answer: operating budget- A. budget production
- B. planned production
- C. setup production
- D. stand by production
Explanation: Required production equals budgeted sales plus desired ending finished-goods inventory minus beginning finished-goods inventory.
Correct answer: budget production- A. high incentive bonus
- B. low incentive bonus
- C. influence bonus
- D. revenue bonus
Explanation: When managers produce a higher and reliable profit forecast, the resulting performance target can support a larger performance-based…
Correct answer: high incentive bonus- A. cost budget
- B. material list
- C. revenue budget
- D. list of investors
Explanation: The operating budget normally begins with the revenue or sales budget because expected sales determine production, purchasing, staffing…
Correct answer: revenue budget- A. complexity
- B. process
- C. budget
- D. batching
Explanation: A budget is a formal quantitative expression of management's action plan for a stated future period.
Correct answer: budget- A. profit plan
- B. sales plan
- C. cost plan
- D. marketing planStrategic Planning
Explanation: A comprehensive budget plan is often called a profit plan because it coordinates expected revenues, costs, and the resulting profit.
Correct answer: profit plan- A. cost slack
- B. target slack
- C. budgetary slack
- D. revenue slackAccounting & Auditing
Explanation: Budgetary slack occurs when managers deliberately understate expected revenues or overstate expected costs, making the target easier to…
Correct answer: budgetary slack- A. intelligent interpretations
- B. participation
- C. persuasion
- D. all of above
Explanation: Effective budget administration needs intelligent interpretation of results, participation by responsible managers, and persuasion to…
Correct answer: all of above- A. to be implemented
- B. based on current practice
- C. based on past prices
- D. based on sold quantity
Explanation: Kaizen budgeting builds expected costs after considering continuous improvements that are planned for implementation.
Correct answer: to be implemented