All Free Accounting MCQs with Answers
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1,971 questions · page 63 of 99
1241. The formula of 1 - unexplained variation ⁄ total variation is used to calculate _____________?
- A. coefficient of determination
- B. coefficient of index
- C. coefficient of residual
- D. coefficient of prediction
Explanation: The coefficient of determination is calculated as 1 minus unexplained variation divided by total variation.
Correct answer: coefficient of determination- A. variable cost
- B. mixed cost
- C. semi variable cost
- D. Both B and C
Explanation: A mixed cost contains both a fixed component and a variable component. Semi-variable cost is another name for mixed cost, so both options…
Correct answer: Both B and C- A. $80,000
- B. $12,800
- C. $70,000
- D. $22,800
Explanation: The slope equals the change in cost divided by the change in machine hours, so machine-hour change equals $32,000 ÷ 0.40 = 80,000 hours.
Correct answer: $80,000- A. fixed curve
- B. learning curve
- C. linear curve
- D. mixed curve
Explanation: A learning curve measures the reduction in labour hours per unit as cumulative production increases and workers gain experience.
Correct answer: learning curve- A. predicted fixed cost
- B. predicted variable cost
- C. predicted cost
- D. predicted price
Explanation: In y = a + bx, y represents the total predicted cost, a is fixed cost, and bx is the variable-cost portion.
Correct answer: predicted cost- A. pricing method
- B. manufacturing method
- C. conference method
- D. inference method
Explanation: The conference method estimates costs through informed judgments and discussions with managers familiar with departmental costs and their…
Correct answer: conference method- A. 55
- B. 15
- C. 65
- D. 85
Explanation: The observed value equals the predicted value plus the residual error: 20 + 35 = 55.
Correct answer: 55- A. has meaning
- B. has no meaning
- C. has index values
- D. has no index values
Explanation: Economic plausibility requires the goodness-of-fit measure to be meaningful in explaining how the cost driver relates to cost.
Correct answer: has meaning- A. choose price estimation method
- B. choose dependent variable
- C. choose independent variable
- D. choose revenue estimation method
Explanation: Quantitative cost estimation begins by selecting the dependent variable, usually the cost to be estimated.
Correct answer: choose dependent variable- A. heterogeneous relationship
- B. extreme relationship
- C. no homogeneous relationship
- D. homogeneous relationship
Explanation: A homogeneous relationship exists when the dependent cost represents the activity cost associated with the same or a similar cost driver.
Correct answer: homogeneous relationship1251. The vertical dashed line in graphical representation of cost function represents the ________?
- A. cost representation
- B. irrelevant range
- C. relevant range
- D. graphical representation
Explanation: The vertical dashed boundaries in a cost-function graph mark the relevant range, the activity interval in which the assumed cost behavior…
Correct answer: relevant range- A. t-value
- B. b-value
- C. d-value
- D. c-value
Explanation: The t-value compares an estimated coefficient with its standard error, commonly calculated as coefficient divided by standard error.
Correct answer: t-value- A. time horizons are long
- B. time horizons are short
- C. time horizons are irrelevant
- D. time horizons are relevant
Explanation: Over a longer time horizon, more costs can be adjusted and therefore are likely to behave as variable costs.
Correct answer: time horizons are long- A. economic series
- B. financial series
- C. time series
- D. analytical series
Explanation: A time series is data observed over successive periods, such as monthly production or cost figures for a plant.
Correct answer: time series- A. error term
- B. disturbance term
- C. relevant term
- D. both a and b
Explanation: In regression analysis, the residual is the unexplained part of the dependent variable and is called both the error term and the…
Correct answer: both a and b1256. All the conditions or assumptions of regression analysis in simple regression can give __________?
- A. dependent estimation
- B. independent estimation
- C. reliable estimates
- D. unreliable estimates
Explanation: When the assumptions of simple regression are satisfied, the estimated coefficients and predictions are considered reliable.
Correct answer: reliable estimates- A. independent variable
- B. dependent variable
- C. significance plotting
- D. insignificance plotting
Explanation: Regression evaluation commonly tests whether an independent variable significantly explains changes in the dependent variable, usually…
Correct answer: independent variable- A. actual values
- B. predicted values
- C. residual values
- D. indexed values
Explanation: Goodness of fit shows how well the model’s predicted values correspond to the actual observed values, often through R² or related…
Correct answer: predicted values- A. marginal plausibility
- B. economic plausibility
- C. financial plausibility
- D. market plausibility
Explanation: Economic plausibility asks whether the estimated cost relationship makes economic sense, such as whether a cost driver logically causes…
Correct answer: economic plausibility- A. heteroscedasticity
- B. heterogeneous
- C. homogenous
- D. homoscedasticity
Explanation: Heteroscedasticity occurs when the variance of regression errors is not constant across observations.
Correct answer: heteroscedasticity