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 17 of 48
- A. $144,000
- B. $134,000
- C. $124,000
- D. $30,000
Explanation: The static budget equals the flexible budget amount less the sales budget variance: $77,000 − $47,000 = $30,000.
Correct answer: $30,000- A. $40,000
- B. $154,000
- C. $164,000
- D. $124,000Government & Public Sector Jobs
Explanation: Static budget amount is calculated as flexible budget amount minus sales budget variance: $97,000 − $57,000 = $40,000.
Correct answer: $40,000- A. $61,000
- B. $71,000
- C. $43,000
- D. $24,000
Explanation: Adding the flexible budget variance to the flexible budget amount gives the actual result: $57,000 + $14,000 = $71,000.
Correct answer: $71,000- A. profit variance
- B. investment variance
- C. cost variance
- D. selling price variance
Explanation: Multiplying the selling-price difference by actual units isolates the effect of the price change, so it measures selling price variance.
Correct answer: selling price variance- A. corresponding variance
- B. resultant variance
- C. flexible budget variance
- D. static budget variance
Explanation: Flexible budget variance compares what should have been spent or earned at the actual activity level with what actually occurred.
Correct answer: flexible budget variance326. The static budget amount is subtracted from the flexible budget amount to calculate the __________?
- A. sales budget variance
- B. cost budget variance
- C. resultant budget variance
- D. static budget variance
Explanation: Subtracting the static budget from the flexible budget isolates the effect of the change in activity or sales volume, commonly labelled…
Correct answer: sales budget variance- A. static result
- B. actual result
- C. secondary result
- D. primary resultLottery
Explanation: The actual result is derived by adding the flexible budget variance to the flexible budget amount.
Correct answer: actual result- A. $47,000
- B. $57,000
- C. $87,000
- D. $97,000
Explanation: The flexible budget amount is obtained by adding the sales volume variance to the static budget amount: $68,000 + $19,000 = $87,000.
Correct answer: $87,000- A. unstated budget variance
- B. flexible budget variance
- C. constant budget variance
- D. static budget variance
Explanation: Subtracting the flexible budget amount from the actual result measures the flexible-budget variance, which isolates differences in prices…
Correct answer: flexible budget variance- A. $67,000
- B. $97,000
- C. $57,000
- D. $47,000
Explanation: Sales volume variance is the difference between the flexible and static budget amounts: $305,000 - $208,000 = $97,000.
Correct answer: $97,000- A. $39,000
- B. $49,000
- C. $13,000
- D. $15,000Standardized & Admissions Tests
Explanation: The flexible budget amount is already stated as $13,000, so option c merely repeats the given figure.
Correct answer: $13,000- A. selling price variance
- B. investment variance
- C. profit variance
- D. primary variance
Explanation: For revenue, the flexible-budget variance is commonly analysed as a selling-price variance because it compares the actual selling price…
Correct answer: selling price variance- A. $29,000
- B. $11,000
- C. $15,000
- D. $10,000Accounting & Auditing
Explanation: Sales volume variance equals the flexible budget minus the static budget: $20,000 - $9,000 = $11,000.
Correct answer: $11,000- A. $9,000
- B. $8,000
- C. $12,000
- D. $21,000
Explanation: Sales volume variance is the difference between the flexible and static budget amounts: $15,000 - $6,000 = $9,000.
Correct answer: $9,000- A. $1,500,000
- B. $2,500,000
- C. $3,500,000
- D. $4,500,000
Explanation: The flexible budget amount for a variable item is units multiplied by the per-unit price: 3,000 × $500 = $1,500,000.
Correct answer: $1,500,000- A. flexible budget
- B. fixed budget
- C. variable budget
- D. multiplied budgetPrice Comparisons
Explanation: A flexible budget adjusts expected revenues and costs to the actual level of output, unlike a fixed budget, which remains based on one…
Correct answer: flexible budget- A. multiple budget variable
- B. fixed budget variable
- C. flexible budget variable
- D. constant budgetAccounting & Auditing
Explanation: Multiplying the actual number of units by a per-unit variable amount produces the flexible-budget variable amount.
Correct answer: flexible budget variable- A. $215,000
- B. $315,000
- C. $415,000
- D. $515,000
Explanation: The variance is the difference between the flexible and static budget amounts: $620,000 − $405,000 = $215,000.
Correct answer: $215,000- A. sales revenue variance
- B. cost profit variance
- C. profit volume variance
- D. sales volume variance
Explanation: Holding the budgeted prices and costs constant, the difference caused by producing or selling a different volume is called sales volume…
Correct answer: sales volume variance- A. margin
- B. distribution
- C. collection
- D. outcome
Explanation: An outcome is the economic result expected from a particular combination of events or conditions.
Correct answer: outcome