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 50 of 99
- A. event table
- B. outcome table
- C. decision table
- D. probability table
Explanation: A decision table lists alternative decisions or outcomes together with possible events and their probabilities, helping compare expected…
Correct answer: decision table- A. 4.84
- B. 2.84
- C. 3.84
- D. 5.84
Explanation: The degree of operating leverage is contribution margin divided by operating income: $34,000 ÷ $12,000 = 2.83, rounded to 2.84.
Correct answer: 2.84- A. quantity of units required to sold
- B. selling of units
- C. sold units
- D. contributed units
Explanation: Required unit sales are calculated as (fixed cost + target operating income) ÷ contribution margin per unit.
Correct answer: quantity of units required to sold- A. mutual distribution
- B. probability distribution
- C. collective distribution
- D. marginal distribution
Explanation: A probability distribution assigns probabilities to possible outcomes, whose events are normally mutually exclusive and collectively…
Correct answer: probability distribution- A. 45 units
- B. 30 units
- C. 20 units
- D. 52 units
Explanation: Required units equal (fixed cost + target operating income) ÷ contribution margin per unit: ($10,000 + $8,000) ÷ $900 = 20 units.
Correct answer: 20 units- A. 33.34%
- B. 43.34%
- C. 23%
- D. 25%
Explanation: The contribution margin ratio is fixed costs divided by break-even revenue: $15,000 ÷ $45,000 = 33.33%, which rounds to 33.34%.
Correct answer: 33.34%- A. margin of safety
- B. margin of profit
- C. margin of loss
- D. margin of income
Explanation: Margin of safety is the excess of actual or expected revenue over break-even revenue.
Correct answer: margin of safety- A. $35,000
- B. $13,000
- C. $5,000
- D. $10,000
Explanation: Margin of safety equals budgeted revenue minus break-even revenue: $20,000 − $15,000 = $5,000.
Correct answer: $5,000- A. initial offering cost
- B. batch marketing cost
- C. product marketing cost
- D. product design cost
Explanation: Product-sustaining costs support an entire product line, regardless of the number of batches or units produced; product design is an…
Correct answer: product design cost- A. cost variance is favorable
- B. cost variance is unfavorable
- C. price variance is favorable
- D. price variance is unfavorable
Explanation: When actual material price is below the budgeted price, the price variance reduces cost and is favorable.
Correct answer: price variance is favorable- A. price requirements
- B. supply requirements
- C. budgeted performance
- D. demand requirements
Explanation: Budgeted performance is the expected level of performance established in advance through the budgeting process.
Correct answer: budgeted performance- A. less than zero
- B. equal to zero
- C. favorable
- D. unfavorable
Explanation: Labor price variance compares the actual labor rate with the budgeted rate.
Correct answer: unfavorable- A. focused performance
- B. merchandise performance
- C. distribution performance
- D. expected performanceHire Grant Writers
Explanation: Management control compares actual performance with expected performance, such as a budget, standard, or target.
Correct answer: expected performanceHire Grant Writers- A. $409,000
- B. $109,000
- C. $209,000
- D. $309,000
Explanation: Flexible budget variance is the difference between actual cost and flexible-budget cost: $265,000 − $156,000 = $109,000.
Correct answer: $109,000- A. direct variance
- B. rate variance
- C. labor variance
- D. manufacturing variance
Explanation: For direct manufacturing labor, the price variance measures the difference between the actual and standard hourly wage rate.
Correct answer: rate variance- A. $400,000
- B. $500,000
- C. $100,000
- D. $600,000Try Statistical Software
Explanation: Static budget variance equals the actual result minus the static-budget amount: $250,000 − $150,000 = $100,000.
Correct answer: $100,000- A. correspondent budget
- B. full budget variance
- C. methodology variance
- D. static budget variance
Explanation: Static budget variance is the difference between the actual result and the corresponding amount in the original static budget.
Correct answer: static budget variance- A. actual quantity manufactured
- B. budgeted quantity manufactures
- C. budgeted quantity sold
- D. budgeted input quantity
Explanation: When efficiency variance is expressed in input-quantity terms, subtracting it from actual input gives the standard or budgeted input…
Correct answer: budgeted input quantity- A. flexible budget cost
- B. flexible investment cost
- C. static budget cost
- D. static variable cost
Explanation: Flexible budget variance reconciles actual cost with the cost allowed for the actual activity level, so subtracting it from actual cost…
Correct answer: flexible budget cost- A. efficiency
- B. effectiveness
- C. growth evaluation
- D. performance evaluationAccounting & Auditing
Explanation: Efficiency measures how much input was used to achieve a specified output, usually by comparing actual input with the standard input…
Correct answer: efficiency