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 45 of 99
- A. $660,500
- B. $560,500
- C. $460,500
- D. $360,500
Explanation: Variable overhead spending variance is calculated as actual quantity multiplied by the difference between the actual and budgeted…
Correct answer: $360,500- A. choose the budgeting period
- B. select allocation bases
- C. identify variable overhead cost
- D. compute the per unit rateFinance
Explanation: The budgeting process begins by choosing the period for which the variable overhead will be estimated.
Correct answer: choose the budgeting period- A. $34,000
- B. $24,000
- C. $16,000
- D. $18,000
Explanation: Production volume variance is the difference between budgeted fixed overhead and fixed overhead applied to actual output.
Correct answer: $34,000- A. potential budget response
- B. potential management response
- C. potential price response
- D. potential cost responseAccounting & Auditing
Explanation: Fundamental or ideal standards require extensive analysis and resources to establish realistic benchmarks.
Correct answer: potential management response- A. incurred manufacturing
- B. incurred production cost
- C. actual incurred cost
- D. incurred labor cost
Explanation: A flexible-budget variance measures the difference between actual cost and the flexible-budget amount.
Correct answer: actual incurred cost- A. $38,500
- B. $48,500
- C. $58,500
- D. $13,500
Explanation: Actual incurred cost equals the flexible-budget amount plus the fixed-overhead flexible-budget variance: $26,000 + $12,500 = $38,500.
Correct answer: $38,500- A. $57.21 per unit
- B. $67.21 per unit
- C. $77.21 per unit
- D. $87.21 per unit
Explanation: Budgeted fixed overhead per unit is found by dividing total budgeted fixed overhead by budgeted output: $385,000 ÷ 6,730 = approximately…
Correct answer: $57.21 per unit- A. actual cost incurred
- B. fixed cost incurred
- C. variable cost incurred
- D. manufacturing cost incurredFinance
Explanation: The variable-overhead flexible-budget variance reconciles the flexible-budget amount with the actual variable overhead incurred.
Correct answer: actual cost incurred- A. $20,000
- B. $34,000
- C. $44,000
- D. $35,000
Explanation: Total setup cost combines fixed and variable setup costs: $32,000 + $12,000 = $44,000.
Correct answer: $44,000- A. $43,000
- B. $42,000
- C. $29,000
- D. $19,000Government
Explanation: Production volume variance is the difference between budgeted fixed overhead and fixed overhead applied to actual output.
Correct answer: $43,000- A. fixed overhead efficiency variance
- B. variable overhead efficiency variance
- C. variable overhead manufacturing variance
- D. fixed overhead manufacturing variance
Explanation: A difference between actual and budgeted quantities of the allocation base measures efficiency in using that base.
Correct answer: variable overhead efficiency variance- A. unchanged price
- B. unchanged cost
- C. fixed overhead cost
- D. variable overhead costFinance
Explanation: A fixed overhead cost remains constant in total within the relevant activity range, even when production volume changes.
Correct answer: fixed overhead cost- A. choose the budgeting period
- B. select allocation bases
- C. identify variable overhead cost
- D. compute the per unit rate
Explanation: After choosing the budgeting period and allocation base, the next step is to identify the variable overhead costs.
Correct answer: identify variable overhead cost- A. $31,800
- B. $12,300
- C. $12,200
- D. $41,800Accounting & Auditing
Explanation: Production volume variance is calculated as budgeted fixed overhead minus fixed overhead applied to actual output: $22,000 − $9,800 =…
Correct answer: $12,200- A. $83.17
- B. $73.17
- C. $53.17
- D. $63.17
Explanation: Budgeted fixed overhead cost per unit is found by dividing total budgeted fixed overhead by budgeted quantity: $465,200 ÷ 8,750 =…
Correct answer: $53.17- A. $27,000
- B. $25,000
- C. $47,000
- D. $57,000
Explanation: The variable overhead flexible-budget variance equals actual incurred cost minus flexible-budget cost.
Correct answer: $47,000- A. favorable volume variance
- B. profit volume variance
- C. cost volume variance
- D. production volume varianceFinance
Explanation: Production volume variance belongs to fixed overhead because it results from producing at a level different from the denominator activity.
Correct answer: production volume varianceFinance- A. variable batch costs
- B. fixed batch costs
- C. variable setup costs
- D. fixed setup costs
Explanation: Setup labor, setup activity, equipment maintenance and indirect materials generally vary with the number of setups or batches, so they are…
Correct answer: variable setup costs- A. activity based costing
- B. non-financial costing
- C. profit costing
- D. lump sum costingHire Grant Writers
Explanation: Activity-based costing assigns costs through activities and classifies them into levels such as unit-level, batch-level, product-level and…
Correct answer: activity based costing- A. non-financial measures
- B. financial measures
- C. effective measure
- D. lump sum measure
Explanation: Financial measures summarize the overall economic effect and tradeoffs of changes in non-financial measures such as quality, delivery time…
Correct answer: financial measures