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 47 of 99
- A. $10,000
- B. $1,000
- C. $7,000
- D. $4,000
Explanation: Fixed setup costs include all three listed amounts: $3,000 for engineers, $4,000 for supervisors, and $3,000 for equipment leasing.
Correct answer: $10,000- A. $142,500
- B. $112,500
- C. $122,500
- D. $132,500
Explanation: Budgeted fixed overhead based on the stated unit calculation is 450 output units × $250 = $112,500. This gives option b.
Correct answer: $112,500- A. $518,750
- B. $418,750
- C. $218,750
- D. $318,750
Explanation: The flexible-budget variance is the difference between actual incurred cost and the flexible-budget amount: $387,500 − $168,750 =…
Correct answer: $218,750- A. $16,500
- B. $15,500
- C. $14,500
- D. $13,500
Explanation: Production volume variance compares budgeted fixed overhead with fixed overhead applied to actual output.
Correct answer: $13,500- A. setup cost
- B. batch cost
- C. facility cost
- D. lump sum cost
Explanation: A setup cost is incurred when preparing a machine or production batch and may contain both fixed and variable elements in relation to…
Correct answer: setup cost- A. fixed setup cost
- B. total setup cost
- C. variable setup cost
- D. total overhead cost
Explanation: An unfavorable production volume variance indicates that actual production was below the denominator level, causing fixed overhead to be…
Correct answer: fixed setup cost- A. $218,750
- B. $238,750
- C. $258,750
- D. $268,750Standardized & Admissions Tests
Explanation: The flexible-budget variance is the difference between actual cost and the flexible-budget amount: $627,500 − $358,750 = $268,750.
Correct answer: $268,750Standardized & Admissions Tests928. The process of ensuring preventive measure to be done in all machines is classified as _________?
- A. potential price response
- B. potential cost response
- C. potential budget response
- D. potential management response
Explanation: Ensuring preventive maintenance or preventive measures across machines is a management action designed to prevent breakdowns and improve…
Correct answer: potential management response- A. potential cost response
- B. potential budget response
- C. potential management response
- D. potential price responseAccounting & Auditing
Explanation: Installing a production-scheduling procedure changes how management plans and controls plant operations.
Correct answer: potential management response- A. denominator level
- B. numerator level
- C. fixed level
- D. variable level
Explanation: The budgeted fixed-overhead rate is calculated using budgeted fixed overhead divided by the denominator activity level, such as budgeted…
Correct answer: denominator level- A. denominator level variance
- B. numerator level variance
- C. price level variance
- D. cost level variance
Explanation: Production volume variance arises because actual output differs from the denominator activity level used to set the fixed-overhead rate.
Correct answer: denominator level variance- A. $43,000
- B. $73,000
- C. $63,000
- D. $53,000
Explanation: The sales budget variance equals flexible-budget operating income minus static-budget operating income.
Correct answer: $73,000- A. $27,000
- B. $15,000
- C. $39,000
- D. $49,000Government
Explanation: Actual result is obtained by adding the flexible budget variance to the flexible budget amount: $27,000 + $12,000 = $39,000.
Correct answer: $39,000- A. $144,000
- B. $134,000
- C. $124,000
- D. $30,000
Explanation: The static budget equals the flexible budget amount less the sales budget variance: $77,000 − $47,000 = $30,000.
Correct answer: $30,000- A. $40,000
- B. $154,000
- C. $164,000
- D. $124,000Government & Public Sector Jobs
Explanation: Static budget amount is calculated as flexible budget amount minus sales budget variance: $97,000 − $57,000 = $40,000.
Correct answer: $40,000- A. $61,000
- B. $71,000
- C. $43,000
- D. $24,000
Explanation: Adding the flexible budget variance to the flexible budget amount gives the actual result: $57,000 + $14,000 = $71,000.
Correct answer: $71,000- A. profit variance
- B. investment variance
- C. cost variance
- D. selling price variance
Explanation: Multiplying the selling-price difference by actual units isolates the effect of the price change, so it measures selling price variance.
Correct answer: selling price variance- A. corresponding variance
- B. resultant variance
- C. flexible budget variance
- D. static budget variance
Explanation: Flexible budget variance compares what should have been spent or earned at the actual activity level with what actually occurred.
Correct answer: flexible budget variance939. The static budget amount is subtracted from the flexible budget amount to calculate the __________?
- A. sales budget variance
- B. cost budget variance
- C. resultant budget variance
- D. static budget variance
Explanation: Subtracting the static budget from the flexible budget isolates the effect of the change in activity or sales volume, commonly labelled…
Correct answer: sales budget variance- A. static result
- B. actual result
- C. secondary result
- D. primary resultLottery
Explanation: The actual result is derived by adding the flexible budget variance to the flexible budget amount.
Correct answer: actual result