Free Cost Accounting MCQs with Answers
941 Cost Accounting MCQs from Accounting, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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941 questions · page 15 of 48
- A. $31,800
- B. $12,300
- C. $12,200
- D. $41,800Accounting & Auditing
Explanation: Production volume variance is calculated as budgeted fixed overhead minus fixed overhead applied to actual output: $22,000 − $9,800 =…
Correct answer: $12,200- A. $83.17
- B. $73.17
- C. $53.17
- D. $63.17
Explanation: Budgeted fixed overhead cost per unit is found by dividing total budgeted fixed overhead by budgeted quantity: $465,200 ÷ 8,750 =…
Correct answer: $53.17- A. $27,000
- B. $25,000
- C. $47,000
- D. $57,000
Explanation: The variable overhead flexible-budget variance equals actual incurred cost minus flexible-budget cost.
Correct answer: $47,000- A. favorable volume variance
- B. profit volume variance
- C. cost volume variance
- D. production volume varianceFinance
Explanation: Production volume variance belongs to fixed overhead because it results from producing at a level different from the denominator activity.
Correct answer: production volume varianceFinance- A. variable batch costs
- B. fixed batch costs
- C. variable setup costs
- D. fixed setup costs
Explanation: Setup labor, setup activity, equipment maintenance and indirect materials generally vary with the number of setups or batches, so they are…
Correct answer: variable setup costs- A. activity based costing
- B. non-financial costing
- C. profit costing
- D. lump sum costingHire Grant Writers
Explanation: Activity-based costing assigns costs through activities and classifies them into levels such as unit-level, batch-level, product-level and…
Correct answer: activity based costing- A. non-financial measures
- B. financial measures
- C. effective measure
- D. lump sum measure
Explanation: Financial measures summarize the overall economic effect and tradeoffs of changes in non-financial measures such as quality, delivery time…
Correct answer: financial measures- A. favorable spending variance
- B. unfavorable spending variance
- C. favorable price variance
- D. unfavorable price varianceGet Executive Coaching
Explanation: Higher actual plant leasing, administration and depreciation costs than budgeted increase fixed overhead spending, producing an…
Correct answer: unfavorable spending variance- A. favorable price variance
- B. unfavorable price variance
- C. favorable spending variance
- D. unfavorable spending variance
Explanation: When actual fixed overhead items such as leasing, administration and depreciation are below budget, the business spends less than planned…
Correct answer: favorable spending variance- A. cause for exceeding budget
- B. cause of less employment
- C. fixed cost variation
- D. variable cost variationHire An Accountant
Explanation: Less-skilled machine operators may take more time or consume more resources than expected, causing actual variable overhead to exceed the…
Correct answer: cause for exceeding budget- A. $182,500
- B. $152,500
- C. $162,500
- D. $172,500
Explanation: The difference between the actual and budgeted overhead allocation rates is $7,550 minus $4,500, or $3,050; multiplying by the actual…
Correct answer: $152,500- A. $16,000
- B. $54,000
- C. $64,000
- D. $74,000Compare Credit Cards
Explanation: Variable setup cost is found by removing fixed setup cost from total setup cost: $35,000 minus $19,000 equals $16,000.
Correct answer: $16,000- A. efficiency variance
- B. unfavorable variance
- C. production volume variance
- D. favorable variance
Explanation: Basic fixed overhead variance analysis uses spending and production-volume variances, not a separate efficiency variance.
Correct answer: efficiency variance- A. flexible budget amount
- B. constant amount
- C. variable amount
- D. production amount
Explanation: Fixed overhead flexible-budget variance compares actual fixed overhead with the fixed overhead allowed in the flexible budget.
Correct answer: flexible budget amount- A. budget variance
- B. production volume variance
- C. price volume variance
- D. cost volume variance
Explanation: Production volume variance compares budgeted fixed overhead with fixed overhead applied to the actual output level.
Correct answer: production volume variance296. In flexible budget analysis, the variable overhead flexible budget variance is equal to _________?
- A. fixed cost-variable budget amount
- B. actual cost-flexible budget amount
- C. variable cost-allocated amount
- D. actual cost-variable amountFinance
Explanation: The variable overhead flexible-budget variance isolates spending differences by comparing actual variable overhead with the…
Correct answer: actual cost-flexible budget amount- A. $12,000
- B. $15,000
- C. $10,000
- D. $32,000
Explanation: Total setup cost combines its fixed and variable components: $21,000 + $11,000 = $32,000.
Correct answer: $32,000- A. lump sum price amount
- B. lump sum fixed cost
- C. lump sum variable cost
- D. lump sum manufacturing costAccounting & Auditing
Explanation: Equipment and plant lease costs do not change with short-term production activity, so they are fixed costs.
Correct answer: lump sum fixed cost- A. batch level
- B. output unit level
- C. facility and product sustaining
- D. all of aboveEconomics
Explanation: Activity-based costing commonly groups activities into unit-level, batch-level, product-sustaining, and facility-sustaining levels.
Correct answer: all of aboveEconomics- A. $61,500
- B. $31,500
- C. $41,500
- D. $51,500
Explanation: Assuming the stated $10,000 variance is an unfavorable variance, actual incurred cost equals the flexible-budget amount plus the variance…
Correct answer: $31,500