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 77 of 99
- A. information accounting
- B. cost accounting
- C. analyzing accounts
- D. marketing costs
Explanation: Cost accounting determines product costs and supplies information for planning, control, and managerial decisions.
Correct answer: cost accounting- A. $5,850
- B. $5,950
- C. $9,950
- D. $10,050
Explanation: The stated total is found by adding direct service labour, idle-time wages, and overtime premium: $7,000 + $2,000 + $950 = $9,950.
Correct answer: $9,950- A. discuss costs
- B. prime costs
- C. resale cost
- D. merchandise costs
Explanation: Prime cost consists of direct materials plus direct manufacturing labour.
Correct answer: prime costs- A. $4,450
- B. $6,450
- C. $21,500
- D. $14,300
Explanation: Adding the three stated amounts gives $5,000 + $1,000 + $450 = $6,450. Idle-time wages and overtime premium are included in the requested…
Correct answer: $6,450- A. $40,000
- B. $60,000
- C. $52,000
- D. $20,000
Explanation: Prime cost equals direct material cost plus direct manufacturing labour.
Correct answer: $40,000- A. inventoriable costs
- B. finished costs
- C. factory overhead costs
- D. manufacturing overhead costs
Explanation: Inventoriable costs are initially recorded in inventory and transferred to cost of goods sold when the manufactured products are sold.
Correct answer: inventoriable costs- A. manufacturing costs
- B. prime costs
- C. conversion costs
- D. both B and C
Explanation: Prime cost and conversion cost are standard terms used to analyse manufacturing costs: prime cost is direct materials plus direct labour…
Correct answer: both B and C- A. transaction costs
- B. conversion costs
- C. resale costs
- D. merchandise costs
Explanation: Conversion cost equals direct manufacturing labor plus manufacturing overhead because these are the costs of converting raw materials into…
Correct answer: conversion costs- A. manufacturing costs
- B. prime costs
- C. conversion costs
- D. both B and C
Explanation: Direct labor forms part of prime cost with direct materials and part of conversion cost with manufacturing overhead.
Correct answer: both B and C- A. labor costs
- B. factory overhead costs
- C. finished costs
- D. manufacturing costs
Explanation: Supplies, plant maintenance, rent, insurance and cleaning labor support production but cannot normally be traced conveniently to one unit.
Correct answer: factory overhead costs- A. $47,000
- B. $33,000
- C. $57,000
- D. $18,000
Explanation: Conversion cost is calculated as direct manufacturing labor plus manufacturing overhead: $40,000 + $7,000 = $47,000.
Correct answer: $47,000- A. contracting costs
- B. product cost
- C. government costs
- D. marketing costs
Explanation: Costs assigned to units produced are product costs, such as direct materials, direct labor and manufacturing overhead.
Correct answer: product cost1533. The costs which are considered as expenses in the accounting period are also known as ____________?
- A. inventory costs
- B. period costs
- C. timed costs
- D. labor overheads
Explanation: Period costs are charged as expenses in the accounting period in which they are incurred rather than being attached to inventory.
Correct answer: period costs- A. inventory costs
- B. product costs
- C. non-manufacturing costs
- D. manufacturing costs
Explanation: Period costs are charged to the income statement in the period incurred rather than being attached to inventory.
Correct answer: non-manufacturing costs- A. works on cost.
- B. selling overhead.
- C. distribution overhead.
- D. administration overhead
Explanation: Audit fees relate to the general administration and financial control of the business rather than production, selling or delivery.
Correct answer: administration overhead- A. estimation of profit.
- B. estimation of cost.
- C. estimation of selling price.
- D. estimation of units.
Explanation: A tender is a quotation or offer to undertake work at a stated price, so it represents an estimated selling price to the customer.
Correct answer: estimation of selling price.- A. prime cost.
- B. factory cost.
- C. distribution cost.
- D. production cost
Explanation: Rent for a warehouse used to store completed goods is incurred after production and is associated with storing and delivering products, so…
Correct answer: distribution cost.- A. all indirect costs.
- B. all direct costs.
- C. indirect and direct costs.
- D. all specific costs
Explanation: Overhead consists of costs that cannot be directly traced to a particular product or unit, such as indirect materials, labour and…
Correct answer: all indirect costs.- A. Each Department
- B. Each unit of output
- C. Each Month
- D. Each Executive
Explanation: A direct cost can be traced economically and specifically to each unit of output, such as the material used in that unit.
Correct answer: Each unit of output- A. 18,387
- B. 18,560
- C. 18,750
- D. 19,000
Explanation: After the 2% reduction, material cost per unit becomes 1,100 × 98% ÷ 22,000 = 0.049, making revised variable cost per unit 0.069.
Correct answer: 18,387