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 57 of 99
- A. $155,000
- B. $125,000
- C. $135,000
- D. $145,000
Explanation: Total variable cost equals variable cost per unit multiplied by units sold: $25 × 5,000 = $125,000.
Correct answer: $125,000- A. $74,400
- B. $7,440,000
- C. $516.67
- D. $51,667
Explanation: At break-even, total contribution margin equals fixed cost, so contribution margin per unit is $62,000 ÷ 120 = $516.67.
Correct answer: $516.67- A. $2,500
- B. $4,000
- C. $3,800
- D. $3,800
Explanation: Selling price is contribution margin per unit divided by the contribution margin percentage: $1,000 ÷ 0.25 = $4,000.
Correct answer: $4,000- A. $97,000
- B. $83,000
- C. $63,000
- D. $12,860
Explanation: Total contribution margin equals contribution per unit multiplied by units sold: $900 × 70 = $63,000.
Correct answer: $63,000- A. revenue analysis
- B. costs analysis
- C. operating income analysis
- D. cost volume profit analysis
Explanation: Cost-volume-profit analysis examines how changes in sales revenue, costs, and operating activity affect operating income.
Correct answer: cost volume profit analysis- A. $13,500
- B. $14,280
- C. $18,500
- D. $17,500Finance
Explanation: At the break-even point, fixed cost equals contribution margin per unit multiplied by break-even units: $500 × 35 = $17,500.
Correct answer: $17,500Finance- A. off shore cost
- B. markup
- C. sunk cost
- D. outsource costAccounting & Auditing
Explanation: Cost-plus pricing begins with a cost base and adds a markup to provide the desired profit.
Correct answer: markup- A. market based approach
- B. cost incurrence pricing
- C. cost plus pricing
- D. locked-in cost pricing
Explanation: Under cost-plus pricing, the seller adds a markup to the product’s cost base to determine the target selling price.
Correct answer: cost plus pricing- A. outsource engineering
- B. reverse engineering
- C. target engineering
- D. off shore engineering
Explanation: Reverse engineering involves disassembling and studying a competitor’s product or processes to understand its design, technology, and cost…
Correct answer: reverse engineering1130. The practice of seller to charge higher price for same market offering is classified as __________?
- A. peak-load pricing
- B. elastic pricing
- C. elastic demand
- D. inelastic demand
Explanation: Peak-load pricing charges a higher price during periods of unusually high demand or limited capacity, such as peak electricity usage.
Correct answer: peak-load pricing- A. reverse engineering
- B. value engineering
- C. target engineering
- D. operation engineering
Explanation: Value engineering systematically examines product functions and the value chain to remove unnecessary costs while preserving required…
Correct answer: value engineering- A. target operating income per unit
- B. target cost per unit
- C. total current full cost
- D. total cost per unitFinance
Explanation: Target operating income per unit is the profit a company plans to earn from selling one unit of its offering.
Correct answer: target operating income per unit- A. designed-in costs
- B. locked-in costs
- C. value added cost
- D. non-value added cost
Explanation: A non-value-added cost can be eliminated without reducing the usefulness or benefits customers receive from the product.
Correct answer: non-value added cost- A. cost incurrence
- B. valued incurrence
- C. locked incurrence
- D. non valued incurrence
Explanation: Cost incurrence occurs when resources are actually consumed to accomplish a particular objective, such as producing a product or providing…
Correct answer: cost incurrence- A. target price
- B. target cost
- C. outsource price
- D. off shore price
Explanation: A target price is the amount a company expects customers to pay for a market offering.
Correct answer: target price- A. designed-in costs
- B. locked-in costs
- C. value added cost
- D. non-value added cost
Explanation: A value-added cost contributes to the usefulness or features that customers perceive in a product or service, so removing it would reduce…
Correct answer: value added cost- A. price incurrence
- B. price discrimination
- C. price targeting
- D. price engineering
Explanation: Price discrimination occurs when a seller charges different prices to different customers for the same or substantially similar offering.
Correct answer: price discrimination- A. product life cycle
- B. life cycle budgeting
- C. life cycle costing
- D. target costing
Explanation: Life-cycle costing accumulates costs across the entire value chain, from research and development through production, marketing…
Correct answer: life cycle costing- A. $15
- B. $12
- C. $16
- D. $18
Explanation: Target operating income per unit is calculated by dividing total target operating income by planned production: $300,000 ÷ 25,000 units =…
Correct answer: $12- A. budgeted life cycle
- B. targeted life cycle
- C. customer life cycle
- D. operating life cycle
Explanation: Customer life-cycle cost includes the customer's total cost of acquiring, using, maintaining and disposing of a product or service.
Correct answer: customer life cycle