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 71 of 99
- A. $4,000
- B. $1,000
- C. $2,000
- D. $3,000
Explanation: Budgeted production units are found by dividing total fixed manufacturing cost by fixed manufacturing cost per unit: $124,000 ÷ $124 =…
Correct answer: $1,000- A. denominator
- B. numerator
- C. multiplier
- D. equalizer
Explanation: Practical capacity is used as the denominator when calculating budgeted fixed manufacturing cost per unit.
Correct answer: denominator- A. $8,150
- B. $23,150
- C. $33,150
- D. $13,150
Explanation: Under throughput costing, throughput contribution equals revenue minus direct material cost, so revenue is $15,650 + $7,500 = $23,150.
Correct answer: $23,150- A. fixed material price
- B. variable materials price
- C. fixed production units
- D. budgeted production units
Explanation: Dividing budgeted fixed manufacturing cost by fixed manufacturing cost per unit removes the per-unit amount and leaves the planned number…
Correct answer: budgeted production units- A. pricing decisions
- B. marketing decisions
- C. financial decisions
- D. cost budgeting decisions
Explanation: Capacity planning focuses on available production capacity, resource use and related cost budgets rather than setting selling prices.
Correct answer: pricing decisions1406. The difference between the budgeted amounts and the actual results is classified as __________?
- A. standard deviation
- B. variances
- C. mean average
- D. weighted average
Explanation: A variance is the difference between a budgeted or standard amount and the actual result.
Correct answer: variances- A. cost center
- B. revenue center
- C. profit center
- D. investment center
Explanation: A profit center manager controls both revenues and costs, so the department's profit can be evaluated.
Correct answer: profit center- A. cost center
- B. revenue center
- C. profit center
- D. investment center
Explanation: A cost center manager is accountable for controlling costs but does not directly control revenues or investment decisions.
Correct answer: cost center1409. The larger number of manager subordinates and the higher level manager are termed as _________?
- A. activity subordinates
- B. broader responsibility center
- C. broader subordinates
- D. activity ordinates
Explanation: A broader responsibility center covers more subordinates and is usually managed at a higher organizational level.
Correct answer: broader responsibility center- A. evaluating strategy
- B. performing strategy
- C. warned strategy
- D. weighted strategy
Explanation: Evaluating strategy uses selected variables or indicators to determine whether strategic actions are producing the intended results.
Correct answer: evaluating strategy- A. sales department
- B. investing center
- C. marketing department
- D. segment department
Explanation: A sales department is normally a revenue center because its manager is evaluated mainly on revenues generated.
Correct answer: sales department- A. profit center
- B. investment center
- C. cost center
- D. revenue center
Explanation: A revenue center manager is responsible for generating revenues but generally has no control over the related costs.
Correct answer: revenue center- A. employee suggestion
- B. customer suggestion
- C. cost suggestion
- D. price suggestion
Explanation: Kaizen budgeting emphasizes continuous, small cost improvements, with employees suggesting practical ways to reduce waste and improve…
Correct answer: employee suggestion- A. budgeted accounting
- B. action accounting
- C. planned accounting
- D. responsibility accounting
Explanation: Responsibility accounting measures and reports the budgets, actions, and performance of individual responsibility centers.
Correct answer: responsibility accounting- A. strategic implementation
- B. proper implementation
- C. performance evaluation
- D. well evaluated
Explanation: Performance evaluation uses variances and other measures to judge whether managers achieved planned results and implemented strategies…
Correct answer: performance evaluation- A. varied warning
- B. times warning
- C. managers warning
- D. early warning
Explanation: An early-warning variance signals a developing deviation soon enough for managers to take corrective action.
Correct answer: early warning- A. subunit center
- B. instruction center
- C. responsibility center
- D. activity segment
Explanation: A responsibility center is an organizational subunit whose manager is accountable for specified activities, costs, revenues, or…
Correct answer: responsibility center- A. profit center
- B. investment center
- C. cost center
- D. revenue center
Explanation: An investment center manager is accountable for revenues, costs, and the assets or investments used to generate them.
Correct answer: investment center- A. measurement object
- B. cost object
- C. accounting object
- D. budget object
Explanation: A cost object is anything for which costs are measured, such as a product, service, department, customer, or project.
Correct answer: cost object- A. actual cost
- B. budgeted cost
- C. past cost
- D. incurred cost
Explanation: Actual cost is the cost that has already been incurred and is reported from historical records.
Correct answer: actual cost