All Free Accounting MCQs with Answers
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1,971 questions · page 48 of 99
- A. $47,000
- B. $57,000
- C. $87,000
- D. $97,000
Explanation: The flexible budget amount is obtained by adding the sales volume variance to the static budget amount: $68,000 + $19,000 = $87,000.
Correct answer: $87,000- A. unstated budget variance
- B. flexible budget variance
- C. constant budget variance
- D. static budget variance
Explanation: Subtracting the flexible budget amount from the actual result measures the flexible-budget variance, which isolates differences in prices…
Correct answer: flexible budget variance- A. $67,000
- B. $97,000
- C. $57,000
- D. $47,000
Explanation: Sales volume variance is the difference between the flexible and static budget amounts: $305,000 - $208,000 = $97,000.
Correct answer: $97,000- A. $39,000
- B. $49,000
- C. $13,000
- D. $15,000Standardized & Admissions Tests
Explanation: The flexible budget amount is already stated as $13,000, so option c merely repeats the given figure.
Correct answer: $13,000- A. selling price variance
- B. investment variance
- C. profit variance
- D. primary variance
Explanation: For revenue, the flexible-budget variance is commonly analysed as a selling-price variance because it compares the actual selling price…
Correct answer: selling price variance- A. $29,000
- B. $11,000
- C. $15,000
- D. $10,000Accounting & Auditing
Explanation: Sales volume variance equals the flexible budget minus the static budget: $20,000 - $9,000 = $11,000.
Correct answer: $11,000- A. $9,000
- B. $8,000
- C. $12,000
- D. $21,000
Explanation: Sales volume variance is the difference between the flexible and static budget amounts: $15,000 - $6,000 = $9,000.
Correct answer: $9,000- A. $1,500,000
- B. $2,500,000
- C. $3,500,000
- D. $4,500,000
Explanation: The flexible budget amount for a variable item is units multiplied by the per-unit price: 3,000 × $500 = $1,500,000.
Correct answer: $1,500,000- A. flexible budget
- B. fixed budget
- C. variable budget
- D. multiplied budgetPrice Comparisons
Explanation: A flexible budget adjusts expected revenues and costs to the actual level of output, unlike a fixed budget, which remains based on one…
Correct answer: flexible budget- A. multiple budget variable
- B. fixed budget variable
- C. flexible budget variable
- D. constant budgetAccounting & Auditing
Explanation: Multiplying the actual number of units by a per-unit variable amount produces the flexible-budget variable amount.
Correct answer: flexible budget variable- A. $215,000
- B. $315,000
- C. $415,000
- D. $515,000
Explanation: The variance is the difference between the flexible and static budget amounts: $620,000 − $405,000 = $215,000.
Correct answer: $215,000- A. sales revenue variance
- B. cost profit variance
- C. profit volume variance
- D. sales volume variance
Explanation: Holding the budgeted prices and costs constant, the difference caused by producing or selling a different volume is called sales volume…
Correct answer: sales volume variance- A. margin
- B. distribution
- C. collection
- D. outcome
Explanation: An outcome is the economic result expected from a particular combination of events or conditions.
Correct answer: outcome- A. $10,000
- B. $20,000
- C. $40,000
- D. $60,000
Explanation: Operating income before tax must be grossed up from after-tax income: $36,000 ÷ (1 − 0.40) = $60,000.
Correct answer: $60,000- A. 4500 units
- B. 5500 units
- C. 8500 units
- D. 9500 units
Explanation: Margin of safety in units equals actual or expected sales units minus breakeven units: 7,000 − 1,500 = 5,500 units.
Correct answer: 5500 units- A. 32 bundle
- B. 22 bundle
- C. 42 bundle
- D. 38 bundle
Explanation: Breakeven bundles are found by dividing breakeven revenue by revenue per bundle: $220,000 ÷ $10,000 = 22 bundles.
Correct answer: 22 bundle- A. $12,000
- B. $6,000
- C. −$6000
- D. −$12000
Explanation: Contribution margin equals revenue minus variable cost, so variable costs are $9,000 − $3,000 = $6,000.
Correct answer: $6,000- A. 32.75%
- B. 43.75%
- C. 53%
- D. 22%
Explanation: Margin of safety percentage equals margin of safety divided by budgeted revenue: $35,000 ÷ $80,000 × 100 = 43.75%.
Correct answer: 43.75%- A. degree of operating leverage
- B. degree of change
- C. degree of change in margin
- D. degree of change in income
Explanation: The contribution margin divided by operating income measures the degree of operating leverage, showing how strongly operating income…
Correct answer: degree of operating leverage- A. PV graph
- B. CV graph
- C. SO graph
- D. QI graph
Explanation: A profit-volume graph shows how changes in sales quantity affect operating income.
Correct answer: PV graph