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 74 of 99
- A. appraisal costs
- B. internal and external failure costs
- C. prevention costs
- D. all of above
Explanation: Quality costs comprise prevention costs, appraisal costs, internal failure costs and external failure costs.
Correct answer: all of above- A. 94%
- B. 93%
- C. 95%
- D. 97.50%
Explanation: Employee satisfaction is calculated as satisfied employees divided by total employees: 195 ÷ 200 × 100 = 97.5%.
Correct answer: 97.50%- A. prevention costs
- B. external failure costs
- C. appraisal costs
- D. internal failure costs
Explanation: Internal failure costs arise when defective products are identified and corrected before shipment to customers.
Correct answer: internal failure costs- A. measures of growth and learning
- B. measures of internal business processes
- C. customer measures
- D. financial measures
Explanation: Training employees to identify and manage bottlenecks builds employee capability and improves organizational processes, so it belongs to…
Correct answer: measures of growth and learning- A. prevention costs
- B. external failure costs
- C. appraisal costs
- D. internal failure costs
Explanation: Appraisal costs are incurred to inspect, test, and identify products that fail to meet specifications.
Correct answer: appraisal costs- A. responding time
- B. value chain time
- C. delivery time
- D. manufacturing cycle efficiency
Explanation: Delivery time is the elapsed time required to complete and deliver an order to the customer.
Correct answer: delivery time- A. learning quality
- B. design quality
- C. conformance quality
- D. business process quality
Explanation: Conformance quality measures how closely actual product performance matches its specified features and design.
Correct answer: conformance quality- A. employee turnover ratio
- B. employee empowerment ratio
- C. employee satisfaction ratio
- D. employee training percentage
Explanation: The employee empowerment ratio measures the share of processes in which employees are authorized to make decisions.
Correct answer: employee empowerment ratio- A. throughput contribution
- B. operating cost contribution
- C. operating contribution
- D. marginal contribution
Explanation: Throughput contribution equals sales revenue minus the direct material cost of goods sold, because direct materials are treated as the…
Correct answer: throughput contribution- A. relevant costing diagram
- B. cause and effect diagram
- C. control chart
- D. Pareto diagram
Explanation: A fishbone diagram, also called an Ishikawa diagram, organizes possible causes of a particular problem or effect.
Correct answer: cause and effect diagram- A. learning quality
- B. design quality
- C. conformance quality
- D. business process quality
Explanation: Design quality refers to how well a product’s planned features satisfy customer requirements.
Correct answer: design quality- A. $14,500
- B. $135,000
- C. $125,000
- D. $12,500
Explanation: The price recovery effect is the change in selling price multiplied by the base-year units sold: ($60 − $55) × 25,000 = $125,000.
Correct answer: $125,0001473. In strategy formulation, the forces that must be focused for industry analysis include ________?
- A. potential entrants in market
- B. customer's bargaining power
- C. supplier's bargaining power
- D. all of above
Explanation: Porter’s industry analysis considers competitive forces including potential entrants, customers’ bargaining power, and suppliers’…
Correct answer: all of above- A. internal process component
- B. growth component
- C. price recovery component
- D. productivity component
Explanation: The price recovery component measures the operating-income change caused by changes in the selling prices of outputs and the purchase…
Correct answer: price recovery component- A. targeted productivity
- B. total factor productivity
- C. partial productivity
- D. unused productivity
Explanation: Partial productivity is calculated as a specific output quantity divided by the quantity of one input used, such as units produced per…
Correct answer: partial productivity- A. 0.642 unit of jacket per ² of leather
- B. 0.342 unit of jacket per ² of leather
- C. 0.442 unit of jacket per ² of leather
- D. 0.542 unit of jacket per ² of leather
Explanation: Direct material productivity equals output divided by material input: 2,250,000 ÷ 3,500,000 = 0.642857, or approximately 0.642 jacket per…
Correct answer: 0.642 unit of jacket per ² of leather- A. employee turnover rates
- B. operating capabilities and number of patents
- C. operating income and revenue growth
- D. customer satisfaction and market share
Explanation: The financial perspective tracks outcomes such as operating income, revenue growth, profitability, and return on investment.
Correct answer: operating income and revenue growth- A. engineered productivity
- B. targeted productivity
- C. partial productivity
- D. total factor productivity
Explanation: Total factor productivity compares output with the combined cost of all inputs used, rather than with only one input.
Correct answer: total factor productivity- A. inelastic demand
- B. product differentiation
- C. cost leadership
- D. elastic demand
Explanation: Cost leadership is the strategy of achieving a lower cost structure so the organization can offer products at lower prices than…
Correct answer: cost leadership- A. targeted capacity
- B. budgeted capacity
- C. recovery capacity
- D. unused capacity
Explanation: Unused capacity is the available capacity that is not currently employed and can potentially be used to meet additional customer demand.
Correct answer: unused capacity