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 51 of 99
- A. functioning
- B. variance
- C. variation
- D. deviation
Explanation: Variance analysis links management planning with control by comparing actual results with planned or standard results.
Correct answer: variance- A. static budget receipts
- B. static budget deviation
- C. static budget variance
- D. multiple budget variance
Explanation: The difference between actual results and the static budget amount is the static budget variance.
Correct answer: static budget variance- A. $23,800
- B. $11,200
- C. $12,200
- D. $13,200
Explanation: Efficiency variance is calculated as (standard quantity allowed minus actual quantity) multiplied by the standard price: (90 − 250) × $70…
Correct answer: $11,200- A. control variance
- B. uncontrolled variance
- C. usage variance
- D. effective variance
Explanation: Efficiency variance measures the cost effect of using more or fewer input units than the standard quantity allowed, so it is also called…
Correct answer: usage variance- A. understand variance reason
- B. improve future performance
- C. learning of improvement
- D. all of above
Explanation: Variance analysis identifies the reasons for deviations, helps management improve future performance, and supports organisational…
Correct answer: all of above- A. price variance is favorable
- B. price variance is unfavorable
- C. cost variance is favorable
- D. cost variance is unfavorable
Explanation: Paying less than the standard or budgeted material price creates a favorable price variance.
Correct answer: price variance is favorable- A. marketing budget
- B. methodological budget
- C. static budget
- D. varied budget
Explanation: A static budget is prepared for one predetermined level of activity or output and does not change when actual output changes.
Correct answer: static budget- A. 300 units
- B. 700 units
- C. 800 units
- D. 500 units
Explanation: Treating the stated efficiency variance as the excess of actual input over budgeted input, the budgeted quantity is 500 − 200 = 300 units.
Correct answer: 300 units1009. The difference between actual input variance and the budgeted input variance is called __________?
- A. price variance
- B. actual output price
- C. budgeted output price
- D. actual selling priceHire An Accountant
Explanation: Price variance measures the difference between the actual input price and the budgeted or standard input price, usually multiplied by the…
Correct answer: price variance- A. activity based costing
- B. improved costing
- C. learned improvements
- D. positive effectiveness
Explanation: Activity-based costing treats activities as cost objects and assigns costs according to the resources those activities consume.
Correct answer: activity based costing- A. revenue planning
- B. actual results
- C. marketing results
- D. cost planning
Explanation: A variance is the difference between an expected or standard amount and the actual result achieved.
Correct answer: actual results- A. output unit
- B. input unit
- C. standard input
- D. standard output
Explanation: Standard input is the quantity of input predetermined as necessary to produce a specified level of output under expected operating…
Correct answer: standard input- A. growth evaluation
- B. performance evaluation
- C. efficiency
- D. effectiveness
Explanation: Effectiveness measures the extent to which predetermined targets or objectives are achieved, including an income target.
Correct answer: effectiveness- A. 275 units
- B. 250 units
- C. 150 units
- D. 650 units
Explanation: The difference between actual input of 200 units and budgeted input of 50 units is 200 − 50 = 150 units, representing excess usage.
Correct answer: 150 units- A. revenue variance
- B. cost variance
- C. favorable variance
- D. unfavorable varianceCompare Credit Cards
Explanation: A decrease in operating income compared with the budget is unfavorable because the business earned less than planned.
Correct answer: unfavorable varianceCompare Credit Cards- A. standard price per input unit
- B. standard price per output unit
- C. standard cost per input unit
- D. standard cost per output unitHire An Accountant
Explanation: Dividing the standard cost per output unit by the standard input quantity required per output unit gives the standard price per input…
Correct answer: standard price per input unit- A. $15,000
- B. $13,000
- C. $11,000
- D. $9,000
Explanation: Price variance equals (actual price − standard price) × actual quantity: ($700 − $400) × 50 = $15,000.
Correct answer: $15,000- A. favorable variance
- B. unfavorable variance
- C. revenue variance
- D. cost varianceCompare Credit Cards
Explanation: Operating income above the budget is favorable because actual profitability exceeded the planned amount.
Correct answer: favorable variance- A. standard price
- B. input price
- C. actual input
- D. output price
Explanation: The standard price is the predetermined price or rate the company expects to pay for one unit of an input.
Correct answer: standard price- A. fixed manufacturing cost
- B. batch level cost
- C. per unit cost
- D. factory overall cost
Explanation: Material handling is commonly driven by the number of material movements or batches, so it is classified as a batch-level cost in…
Correct answer: batch level cost