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 41 of 99
- A. cost format
- B. decided plan
- C. coordination plan
- D. budgetGet Executive Coaching
Explanation: A budget converts a plan into quantified amounts, such as expected revenues, costs, and resources, and helps coordinate its…
Correct answer: budgetGet Executive Coaching- A. value chain
- B. useful chain
- C. product chain
- D. services chain
Explanation: The value chain is the sequence of business activities that adds value to a product or service for the customer, from inputs through…
Correct answer: value chain- A. past orientation
- B. help banks make decisions
- C. help managers make decisions
- D. help investors make decision
Explanation: Management accounting provides internal information such as budgets, forecasts, and cost analyses to help managers plan and make…
Correct answer: help managers make decisions- A. $1,775,000
- B. $1,675,000
- C. $1,875,000
- D. $1,975,000
Explanation: Total direct labor cost is found by multiplying hours by the hourly rate: 3,550 × $500 = $1,775,000.
Correct answer: $1,775,000- A. budget overhead applied
- B. manufacturing overhead applied
- C. labor overhead applied
- D. none of aboveAccounting & Auditing
Explanation: Under normal costing, the predetermined overhead rate is multiplied by the actual allocation-base quantity to determine manufacturing…
Correct answer: manufacturing overhead applied- A. 69.72%
- B. 79.72%
- C. 99.75%
- D. 89.72%
Explanation: The budgeted indirect cost rate is calculated as cost divided by the allocation base: $139,600 ÷ $155,600 = 0.8972, or 89.72%.
Correct answer: 89.72%- A. $168,750
- B. $148,570
- C. $186,750
- D. $125,680
Explanation: Budgeted annual indirect cost equals the rate per hour multiplied by budgeted hours: $225 × 750 = $168,750.
Correct answer: $168,750- A. $803.571 per labor hour
- B. $805 per labor hour
- C. $905 per labor hour
- D. $802 per labor hour
Explanation: The budgeted manufacturing overhead rate is computed as $2,250,000 ÷ 2,800 labor hours = $803.571 per labor hour.
Correct answer: $803.571 per labor hour- A. $93,450
- B. $94,560
- C. $96,450
- D. $95,450
Explanation: Annual budgeted indirect cost is obtained by multiplying the rate by the allocation base: $115 × 830 hours = $95,450.
Correct answer: $95,450- A. 67.30%
- B. 87.31%
- C. 55.50%
- D. 45.50%Accounting & Auditing
Explanation: The budgeted indirect cost rate is $144,500 ÷ $165,500 = 0.8731, or 87.31%.
Correct answer: 87.31%- A. 109.87
- B. $107.78
- C. $106.56
- D. $104.34
Explanation: The overhead rate is calculated as actual manufacturing overhead divided by actual allocation-base usage: $485,000 ÷ 4,500 hours = $107.78…
Correct answer: $107.78- A. priced costing
- B. actual costing
- C. direct costing
- D. indirect costing
Explanation: Actual costing uses actual direct-cost input quantities multiplied by their actual direct rates, while normal costing typically uses…
Correct answer: actual costing- A. under allocated indirect cost
- B. over allocated direct cost
- C. over allocated budget
- D. under allocated budgetAccounting & Auditing
Explanation: Indirect cost is underallocated when the actual cost exceeds the amount allocated: $800 − $700 = $100 underallocated.
Correct answer: under allocated indirect cost814. The systematic way of linking group of indirect cost to a cost object is classified as ___________?
- A. linked allocation base
- B. direct allocation base
- C. indirect allocation base
- D. cost allocation base
Explanation: A cost allocation base is the measure used to systematically assign a pool of indirect costs to a cost object, such as labor hours or…
Correct answer: cost allocation base- A. manufacturing overhead allocated
- B. cost overhead applied
- C. manufacturing overhead applied
- D. both A and C
Explanation: Manufacturing overhead assigned to jobs is commonly called manufacturing overhead applied, and it is also described as allocated…
Correct answer: both A and C- A. $138 per labor hour
- B. $137.27 per hour
- C. $140 per labor hour
- D. $142 per labor hour
Explanation: The direct labor cost rate equals budgeted direct labor cost divided by budgeted labor hours: $755,000 ÷ 5,500 = $137.27 per hour.
Correct answer: $137.27 per hour- A. $126.32 per labor hour
- B. $128.32 per labor hour
- C. $130 per labor hour
- D. $132 per labor hour
Explanation: Divide the budgeted direct labor cost by the budgeted hours: $480,000 ÷ 3,800 = $126.32 per labor hour. This gives option a.
Correct answer: $126.32 per labor hour- A. selling time record
- B. labor time record
- C. buying time record
- D. direct time record
Explanation: A labor time record documents the time employees spend on particular jobs and departments, supporting the assignment of direct labor…
Correct answer: labor time record- A. $1500 per machine hour
- B. $250 per machine hour
- C. $500 per machine hour
- D. $1000 per machine hour
Explanation: The allocation rate is calculated as total overhead divided by machine hours: $500,000 ÷ 1,000 = $500 per machine hour.
Correct answer: $500 per machine hour- A. $4,730,000
- B. $3,730,000
- C. $2,730,000
- D. $1,730,000Government & Public Sector Jobs
Explanation: Total direct labor cost equals labor hours multiplied by the cost per hour: 4,550 × $600 = $2,730,000.
Correct answer: $2,730,000