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 52 of 99
- A. actual result
- B. expected results
- C. expected cost
- D. expected revenue
Explanation: Static budget variance reconciles the planned operating income with the actual operating income.
Correct answer: actual result- A. lesser effective
- B. greater efficiency
- C. smaller efficiency
- D. greater effective
Explanation: Using fewer inputs to produce more output indicates that resources are being used more productively.
Correct answer: greater efficiency- A. static budget
- B. varied budget
- C. marketing budget
- D. methodological budgetAccounting & Auditing
Explanation: A master budget fixed at the output level planned at the beginning of the period is a static budget.
Correct answer: static budget- A. $4,000
- B. $6,000
- C. $8,000
- D. $10,000
Explanation: Price variance equals the price difference multiplied by the actual quantity: ($500 − $300) × 50 = $10,000.
Correct answer: $10,000- A. $120
- B. $50
- C. $110
- D. $30
Explanation: The difference between the actual and budgeted input prices is $70 − $40 = $30.
Correct answer: $30- A. positive cost variance
- B. negative cost variance
- C. flexible budget variance
- D. flexible cost variance
Explanation: Comparing actual cost with the cost allowed by the flexible budget measures the flexible-budget variance.
Correct answer: flexible budget variance- A. $4,500
- B. $3,500
- C. $2,500
- D. $1,500
Explanation: Efficiency variance is calculated as the standard input price multiplied by the difference between actual and allowed quantities: $50 ×…
Correct answer: $4,500- A. actual input quantity
- B. actual output quantity
- C. actual input price
- D. actual output priceAccess Government Careers
Explanation: The actual input quantity is found by combining the budgeted or standard input quantity with the efficiency difference.
Correct answer: actual input quantity- A. 275 units
- B. 125 units
- C. 550 units
- D. 650 units
Explanation: When actual input exceeds the budgeted input by 200 units, the budgeted quantity is 750 minus 200, or 550 units.
Correct answer: 550 units- A. variable growth of company
- B. constant growth of company
- C. company is inefficient
- D. company is efficient
Explanation: Using more input than the budget allows for the achieved output indicates inefficient resource use.
Correct answer: company is inefficient- A. revenue allocation
- B. revenue object
- C. revenue increment
- D. reciprocal revenue
Explanation: Revenue allocation assigns revenue to particular revenue objects when the revenue cannot be traced to them economically or…
Correct answer: revenue allocation- A. direct method
- B. step down
- C. reciprocal method
- D. all of aboveHire An Accountant
Explanation: Support-department costs may be allocated using the direct method, step-down method, or reciprocal method.
Correct answer: all of aboveHire An Accountant- A. indirect method
- B. direct method
- C. step down method
- D. reciprocal method
Explanation: The step-down method allocates a support department's cost to operating departments and may also allocate it to other support departments.
Correct answer: step down method- A. indirect method
- B. direct method
- C. step down method
- D. reciprocal method
Explanation: The reciprocal method recognizes all mutual services exchanged among support departments before allocating their costs to operating…
Correct answer: reciprocal method- A. Third incremental party
- B. second incremental party
- C. primary party
- D. First incremental party
Explanation: In the incremental allocation method, the party ranked first is the primary party, while later parties are called incremental parties.
Correct answer: primary party- A. $90 per hour
- B. less than $90 per hour
- C. greater than $90 per hour
- D. none of aboveCompare Credit Cards
Explanation: Under the single-rate method, both fixed and variable support costs are combined into one rate, so Division B is charged the same $90 per…
Correct answer: $90 per hour- A. sales mix allocation method
- B. dual-rate cost-allocation method
- C. single rate cost allocation method
- D. quantity variance allocation methodHire An Accountant
Explanation: The single-rate cost-allocation method combines fixed and variable support costs into one pool and applies one rate.
Correct answer: single rate cost allocation method- A. revenue allocation
- B. revenue object
- C. revenue increment
- D. reciprocal revenueTrack Stock Earnings
Explanation: A revenue object is the particular product, service, or other item for which revenue must be measured or allocated.
Correct answer: revenue object- A. step down allocation method
- B. stand-alone revenue allocation method
- C. incremental revenue allocation method
- D. revenue mix allocation methodCompare Credit Cards
Explanation: The stand-alone revenue allocation method uses each product's specific stand-alone revenue or selling-price information as the weight for…
Correct answer: stand-alone revenue allocation method- A. First incremental user
- B. primary user
- C. secondary user
- D. second incremental user
Explanation: In incremental cost allocation, the cost object user ranked first is the primary user.
Correct answer: primary user