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 53 of 99
- A. First incremental user
- B. primary user
- C. secondary user
- D. second incremental user
Explanation: The ranking sequence is primary user first, first incremental user second, and second incremental user third.
Correct answer: second incremental user1042. The first ranked product, in incremental revenue allocation method, is classified as ___________?
- A. primary product
- B. First incremental product
- C. Second incremental product
- D. Third incremental product
Explanation: The product ranked first in the incremental revenue allocation method is the primary product.
Correct answer: primary product- A. sales mix allocation method
- B. dual-rate cost-allocation method
- C. single rate cost allocation method
- D. quantity variance allocation methodCompare Credit Cards
Explanation: The dual-rate cost-allocation method creates separate fixed-cost and variable-cost pools, applying an appropriate rate to each.
Correct answer: dual-rate cost-allocation method- A. selling prices as weights
- B. unit costs as weights
- C. physical units as weights
- D. all of above
Explanation: The stand-alone method can use several measures of each user's independent share, including selling price, unit cost, or physical units.
Correct answer: all of above- A. complete reciprocal costs
- B. artificial costs
- C. operating costs
- D. flexible operating costs
Explanation: Complete reciprocal costs include the support department's own costs together with costs allocated from other departments, including…
Correct answer: complete reciprocal costs- A. bundled cost
- B. common cost
- C. stand-alone cost
- D. incremental costTrack Stock Earnings
Explanation: A common cost arises from a facility, activity, or resource used by two or more users, so it must be allocated among them.
Correct answer: common cost- A. revenue increment
- B. reciprocal revenue
- C. revenue allocation
- D. revenue object
Explanation: A revenue object is the product, division, customer, or other unit for which revenue is measured or allocated.
Correct answer: revenue object- A. bundled products allocation method
- B. variable cost allocation method
- C. stand-alone cost allocation method
- D. incremental cost allocation method
Explanation: The incremental cost allocation method ranks users by responsibility for the cost and allocates it in that order.
Correct answer: incremental cost allocation method- A. bundled products allocation method
- B. variable cost allocation method
- C. stand-alone cost allocation method
- D. incremental cost allocation method
Explanation: The stand-alone cost allocation method treats each user as a separate entity and uses that user's independent cost to determine the…
Correct answer: stand-alone cost allocation method- A. $2,078,000
- B. $3,078,000
- C. $2,065,000
- D. $3,065,000
Explanation: Under the figures given, the dual-rate calculation is 8,500 × $120 plus 9,500 × $110, giving $1,020,000 + $1,045,000 = $2,065,000.
Correct answer: $2,065,000- A. indirect method
- B. direct method
- C. step down method
- D. reciprocal method
Explanation: The direct method allocates each support department's cost only to operating departments and ignores services exchanged among support…
Correct answer: direct method- A. primary product
- B. First incremental product
- C. Second incremental product
- D. Third incremental product
Explanation: In incremental allocation, the highest-ranked product is the primary product, so the second-ranked product is the first incremental…
Correct answer: First incremental product- A. step down product
- B. dual mix product
- C. bundled product
- D. reciprocal product
Explanation: A bundled product combines two or more separately identifiable products and sells them for one combined price.
Correct answer: bundled product- A. step down allocation method
- B. stand-alone revenue allocation method
- C. incremental revenue allocation method
- D. revenue mix allocation methodAccess Government Careers
Explanation: The incremental revenue allocation method ranks bundled products using management’s predetermined order and allocates revenue…
Correct answer: incremental revenue allocation method- A. production department
- B. operating department
- C. allocation base department
- D. both a and b
Explanation: A production department directly works on the product, while an operating department is the broader term for a department involved in the…
Correct answer: both a and b- A. supply department
- B. support department
- C. production department
- D. allocation base department
Explanation: A support department serves other internal departments rather than directly manufacturing the main product or delivering the main service.
Correct answer: support department- A. relevant
- B. bunk
- C. dispose value
- D. sunk
Explanation: The cost of a machine that will be acquired in the future is a relevant cost because it changes depending on the decision being…
Correct answer: relevant- A. outsourcing
- B. insourcing
- C. idle sourcing
- D. sunk sourcing
Explanation: Outsourcing means obtaining goods or services from an external supplier instead of producing or obtaining them internally.
Correct answer: outsourcing- A. parallel revenues
- B. abnormal revenues
- C. expected future revenues
- D. serial revenuesHire An Accountant
Explanation: Relevant revenue must relate to future outcomes and differ between the alternatives under consideration.
Correct answer: expected future revenues- A. sunk costs
- B. bunked costs
- C. unrecorded costs
- D. recorded costsHire An Accountant
Explanation: A sunk cost cannot be recovered or changed by a current decision, so it remains the same regardless of the selected alternative.
Correct answer: sunk costs