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 65 of 99
- A. human resource management costs
- B. corporate administration costs
- C. treasury costs
- D. discretionary costs
Explanation: Corporate administration costs include organisation-wide general management expenses such as executive salaries, rent, and general…
Correct answer: corporate administration costs1282. The difference between corresponding static budget and flexible budget amount is called __________?
- A. sales volume variance
- B. sales mix variance
- C. sales quantity variance
- D. market share variance
Explanation: The difference between corresponding static-budget and flexible-budget amounts measures the effect of the change in activity or sales…
Correct answer: sales volume variance- A. discretionary channel costs
- B. corporate-sustaining costs
- C. distribution-channel costs
- D. engineered resource costs
Explanation: Costs relating to a particular distribution route or channel, such as a retail or wholesale channel, are classified as…
Correct answer: distribution-channel costs- A. sales mix variance
- B. sales volume variance
- C. flexible budget variance
- D. static budget variance
Explanation: A flexible budget is adjusted to the actual output level, so the remaining difference between actual performance and that adjusted budget…
Correct answer: flexible budget variance- A. discretionary channel costs
- B. corporate-sustaining costs
- C. distribution-channel costs
- D. customer-sustaining costs
Explanation: Customer-sustaining costs arise from activities performed for an individual customer, such as special support or account management.
Correct answer: customer-sustaining costs- A. discretionary channel costs
- B. corporate-sustaining costs
- C. distribution-channel costs
- D. engineered resource costs
Explanation: Corporate-sustaining costs support the business as a whole and cannot be reasonably traced to a particular distribution channel or…
Correct answer: corporate-sustaining costs- A. human resource management costs
- B. corporate administration costs
- C. treasury costs
- D. discretionary costs
Explanation: Human resource management, corporate administration, and treasury are commonly identified corporate-cost categories.
Correct answer: discretionary costs- A. customer cost hierarchy
- B. customer profitability hierarchy
- C. treasury costing hierarchy
- D. partial costing hierarchy
Explanation: A customer cost hierarchy groups customer-related costs according to the level at which they are incurred, using suitable cost drivers…
Correct answer: customer cost hierarchy- A. partial productivity analysis
- B. treasury cost analysis
- C. customer profitability analysis
- D. customer cost analysis
Explanation: Customer profitability analysis combines revenue from each customer with the costs required to serve that customer, revealing the…
Correct answer: customer profitability analysis- A. treasury costs
- B. discretionary costs
- C. human resource management costs
- D. corporate administration costs
Explanation: Treasury functions manage financing and investment of funds, including financing the construction or purchase of new equipment.
Correct answer: treasury costs- A. $8,000
- B. $80,000
- C. $62,000
- D. $35,000
Explanation: Sales mix variance is found by comparing contribution margin under the budgeted mix with contribution margin under the actual mix: $35,000…
Correct answer: $8,000- A. partial discount
- B. corporate discount
- C. treasury discount
- D. price discount
Explanation: A price discount is the reduction from the listed selling price, often offered to stimulate sales or attract customers.
Correct answer: price discount- A. $2,500
- B. $5,500
- C. $3,500
- D. $2,000
Explanation: Flexible budget variance is measured as the difference between actual performance and the flexible-budget amount at actual output: $5,500…
Correct answer: $2,000- A. sales quantity variance
- B. cost mix variance
- C. volume mix variance
- D. sales mix variance
Explanation: Sales mix variance measures the difference caused by using the actual sales mix instead of the budgeted mix, while holding budgeted…
Correct answer: sales mix variance- A. $6,200
- B. $1,700
- C. $17,000
- D. $4,500
Explanation: Sales volume variance is the difference between the flexible budget and the static budget: $4,500 − $6,200 = −$1,700.
Correct answer: $1,700- A. discretionary costs
- B. human resource management costs
- C. corporate administration costs
- D. treasury costs
Explanation: Recruitment, employee development, and training are functions of human resource management.
Correct answer: human resource management costs- A. 0.475% per year
- B. 4.475% per year
- C. 3.475% per year
- D. 2.475% per year
Explanation: The rate is calculated as tax operating income divided by net initial investment: $885,000 ÷ $35,750,000 × 100 = 2.475% per year.
Correct answer: 2.475% per year1298. The cash flows method, used by net present value method and internal rate of return are ___________?
- A. vertical cash flows
- B. discounted cash flows
- C. lean cash flows
- D. future cash flows
Explanation: NPV and IRR both evaluate investment projects by discounting future cash inflows and outflows to present value.
Correct answer: discounted cash flows- A. net present value
- B. net future value
- C. net discounted value
- D. net recorded cash value
Explanation: NPV is the present value of all expected cash inflows minus the present value of all expected cash outflows, using the required rate of…
Correct answer: net present value- A. cash value of money
- B. net initial investment
- C. net future value
- D. time value of money
Explanation: For uniform annual cash flows, multiplying the payback period by the annual cash flow gives the net initial investment: Payback period ×…
Correct answer: net initial investment