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 46 of 99
- A. favorable spending variance
- B. unfavorable spending variance
- C. favorable price variance
- D. unfavorable price varianceGet Executive Coaching
Explanation: Higher actual plant leasing, administration and depreciation costs than budgeted increase fixed overhead spending, producing an…
Correct answer: unfavorable spending variance- A. favorable price variance
- B. unfavorable price variance
- C. favorable spending variance
- D. unfavorable spending variance
Explanation: When actual fixed overhead items such as leasing, administration and depreciation are below budget, the business spends less than planned…
Correct answer: favorable spending variance- A. cause for exceeding budget
- B. cause of less employment
- C. fixed cost variation
- D. variable cost variationHire An Accountant
Explanation: Less-skilled machine operators may take more time or consume more resources than expected, causing actual variable overhead to exceed the…
Correct answer: cause for exceeding budget- A. $182,500
- B. $152,500
- C. $162,500
- D. $172,500
Explanation: The difference between the actual and budgeted overhead allocation rates is $7,550 minus $4,500, or $3,050; multiplying by the actual…
Correct answer: $152,500- A. $16,000
- B. $54,000
- C. $64,000
- D. $74,000Compare Credit Cards
Explanation: Variable setup cost is found by removing fixed setup cost from total setup cost: $35,000 minus $19,000 equals $16,000.
Correct answer: $16,000- A. efficiency variance
- B. unfavorable variance
- C. production volume variance
- D. favorable variance
Explanation: Basic fixed overhead variance analysis uses spending and production-volume variances, not a separate efficiency variance.
Correct answer: efficiency variance- A. flexible budget amount
- B. constant amount
- C. variable amount
- D. production amount
Explanation: Fixed overhead flexible-budget variance compares actual fixed overhead with the fixed overhead allowed in the flexible budget.
Correct answer: flexible budget amount- A. budget variance
- B. production volume variance
- C. price volume variance
- D. cost volume variance
Explanation: Production volume variance compares budgeted fixed overhead with fixed overhead applied to the actual output level.
Correct answer: production volume variance909. In flexible budget analysis, the variable overhead flexible budget variance is equal to _________?
- A. fixed cost-variable budget amount
- B. actual cost-flexible budget amount
- C. variable cost-allocated amount
- D. actual cost-variable amountFinance
Explanation: The variable overhead flexible-budget variance isolates spending differences by comparing actual variable overhead with the…
Correct answer: actual cost-flexible budget amount- A. $12,000
- B. $15,000
- C. $10,000
- D. $32,000
Explanation: Total setup cost combines its fixed and variable components: $21,000 + $11,000 = $32,000.
Correct answer: $32,000- A. lump sum price amount
- B. lump sum fixed cost
- C. lump sum variable cost
- D. lump sum manufacturing costAccounting & Auditing
Explanation: Equipment and plant lease costs do not change with short-term production activity, so they are fixed costs.
Correct answer: lump sum fixed cost- A. batch level
- B. output unit level
- C. facility and product sustaining
- D. all of aboveEconomics
Explanation: Activity-based costing commonly groups activities into unit-level, batch-level, product-sustaining, and facility-sustaining levels.
Correct answer: all of aboveEconomics- A. $61,500
- B. $31,500
- C. $41,500
- D. $51,500
Explanation: Assuming the stated $10,000 variance is an unfavorable variance, actual incurred cost equals the flexible-budget amount plus the variance…
Correct answer: $31,500- A. production numerator level
- B. production denominator level
- C. production cost level
- D. production fixed levelFinance
Explanation: A fixed overhead rate is calculated using a budgeted denominator level of production, such as expected machine hours or units.
Correct answer: production denominator level- A. $67,500
- B. $57,500
- C. $47,500
- D. $37,500
Explanation: Using the question's intended calculation, budgeted fixed overhead is 250 output units × $150 per unit = $37,500.
Correct answer: $37,500916. The variance is solely because of the difference between budgeted quantity and the ___________?
- A. flexible hours
- B. actual cost
- C. actual quantity
- D. actual priceCompare Credit Cards
Explanation: A quantity or efficiency variance compares the budgeted quantity with the actual quantity used, while price variances concern differences…
Correct answer: actual quantity- A. variable overhead spending variance
- B. fixed overhead spending variance
- C. constant spending variance
- D. potential spending varianceHire An Accountant
Explanation: Variable overhead spending variance compares actual variable overhead with the flexible-budget variable overhead allowed for the actual…
Correct answer: variable overhead spending variance- A. variable setup costs
- B. fixed setup costs
- C. variable batch costs
- D. fixed batch costsCompare Credit Cards
Explanation: Supervisors' and engineers' salaries and equipment leasing do not normally change with the number of batches set up, so they are fixed…
Correct answer: fixed setup costs- A. $21,000
- B. $11,000
- C. $31,000
- D. $41,000
Explanation: Flexible-budget variance equals actual incurred cost minus flexible-budget cost.
Correct answer: $41,000- A. effectively measure
- B. lump sum measure
- C. non-financial measures
- D. financial measures
Explanation: Non-financial measures give focused feedback on individual operating aspects, such as quality, delivery time, or customer satisfaction.
Correct answer: non-financial measures