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 55 of 99
- A. value costs
- B. future function costs
- C. business function costs
- D. sunk function costs
Explanation: Marketing, manufacturing, distribution, and similar costs are grouped according to business functions across the value chain, so they are…
Correct answer: business function costs- A. expected factors
- B. recorded factors
- C. qualitative factors
- D. quantitative factors
Explanation: Qualitative factors describe non-numerical outcomes such as employee morale, customer satisfaction, or supplier reputation.
Correct answer: qualitative factors- A. linear correlation
- B. making decisions
- C. implement decisions
- D. evaluate performance
Explanation: After identifying the problem, considering alternatives, and analysing relevant information, the fourth step is to make the decision.
Correct answer: making decisions- A. salvages
- B. relevant
- C. irrelevant
- D. depreciated cost
Explanation: The book value of an old machine has already been incurred and cannot be changed by a current decision, so it is irrelevant.
Correct answer: irrelevant- A. in-source cost
- B. opportunity cost
- C. offshore cost
- D. outsource cost
Explanation: Opportunity cost is the contribution or benefit sacrificed when a resource is used for one purpose instead of its next best alternative.
Correct answer: opportunity cost- A. expected future costs
- B. serial costs
- C. parallel costs
- D. abnormal costs
Explanation: A relevant cost must be an expected future cost that differs between the alternatives being considered.
Correct answer: expected future costs- A. independent revenue
- B. incremental revenue
- C. differential revenue
- D. dependent revenue
Explanation: Differential revenue is the change in total revenue between two alternative courses of action.
Correct answer: differential revenue- A. have high correlation
- B. be in future
- C. be in past
- D. be zero correlated
Explanation: Relevant costs concern the future because management can still influence them through its decision.
Correct answer: be in future- A. quality of suppliers
- B. dependability of suppliers
- C. production irrelevancy
- D. both a and b
Explanation: A make-or-buy decision considers more than numerical cost, including whether an outside supplier can provide dependable deliveries and…
Correct answer: both a and b- A. operating cost
- B. sunk cost
- C. in-house cost
- D. out-house cost
Explanation: The existing equipment's book value is a sunk cost because it arose from a past purchase and cannot be recovered or changed by the…
Correct answer: sunk cost- A. fixed output
- B. variable output
- C. breakeven number of units
- D. total number of units
Explanation: At break-even, total contribution margin equals total fixed cost. Dividing fixed cost by contribution margin per unit therefore gives the…
Correct answer: breakeven number of units- A. $900
- B. $1,200
- C. $1,500
- D. $1,600
Explanation: Contribution margin per unit equals selling price multiplied by the contribution margin percentage: $5,000 × 30% = $1,500.
Correct answer: $1,500- A. 12%
- B. 20%
- C. 5%
- D. 15%
Explanation: Contribution margin percentage is contribution margin per unit divided by selling price: $1,000 ÷ $5,000 = 20%.
Correct answer: 20%- A. $4,000
- B. $8,000
- C. $5,000
- D. $3,000
Explanation: Operating income equals revenue minus variable cost and fixed cost: $15,000 − $5,000 − $2,000 = $8,000.
Correct answer: $8,000- A. $11,000
- B. −$7000
- C. $4,500
- D. $7,000
Explanation: Contribution margin is total revenue minus total variable cost: $9,000 − $2,000 = $7,000.
Correct answer: $7,000- A. $120,000
- B. $75,000
- C. $12,000
- D. $175,000
Explanation: Break-even revenue equals fixed cost divided by the contribution margin percentage: $30,000 ÷ 40% = $75,000.
Correct answer: $75,0001097. The variable cost per unit is multiplied to the quantity of sold units to calculate ____________?
- A. per unit cost
- B. variable cost
- C. fixed cost
- D. multiple cost
Explanation: Multiplying variable cost per unit by the number of units sold gives total variable cost.
Correct answer: variable cost1098. The contribution margin per unit is multiplied to number of units sold to calculate _____________?
- A. revenue margin
- B. variable margin
- C. contribution margin
- D. divisor margin
Explanation: Contribution margin per unit multiplied by units sold gives total contribution margin.
Correct answer: contribution margin- A. $9,650
- B. $96,000
- C. $15
- D. $9,600
Explanation: Total contribution equals contribution per unit multiplied by units sold: $1,200 × 80 = $96,000.
Correct answer: $96,000- A. $16,000
- B. $40,000
- C. $25,000
- D. $35,700Search Public Records
Explanation: Revenue is calculated as selling price multiplied by units sold: $20 × 800 = $16,000.
Correct answer: $16,000