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 25 of 48
- A. $4,000
- B. $8,000
- C. $5,000
- D. $3,000
Explanation: Operating income equals revenue minus variable cost and fixed cost: $15,000 − $5,000 − $2,000 = $8,000.
Correct answer: $8,000- A. $11,000
- B. −$7000
- C. $4,500
- D. $7,000
Explanation: Contribution margin is total revenue minus total variable cost: $9,000 − $2,000 = $7,000.
Correct answer: $7,000- A. $120,000
- B. $75,000
- C. $12,000
- D. $175,000
Explanation: Break-even revenue equals fixed cost divided by the contribution margin percentage: $30,000 ÷ 40% = $75,000.
Correct answer: $75,000484. The variable cost per unit is multiplied to the quantity of sold units to calculate ____________?
- A. per unit cost
- B. variable cost
- C. fixed cost
- D. multiple cost
Explanation: Multiplying variable cost per unit by the number of units sold gives total variable cost.
Correct answer: variable cost485. The contribution margin per unit is multiplied to number of units sold to calculate _____________?
- A. revenue margin
- B. variable margin
- C. contribution margin
- D. divisor margin
Explanation: Contribution margin per unit multiplied by units sold gives total contribution margin.
Correct answer: contribution margin- A. $9,650
- B. $96,000
- C. $15
- D. $9,600
Explanation: Total contribution equals contribution per unit multiplied by units sold: $1,200 × 80 = $96,000.
Correct answer: $96,000- A. $16,000
- B. $40,000
- C. $25,000
- D. $35,700Search Public Records
Explanation: Revenue is calculated as selling price multiplied by units sold: $20 × 800 = $16,000.
Correct answer: $16,000- A. $400
- B. $600
- C. $800
- D. $1,000Access Government Careers
Explanation: At break-even, fixed costs equal total contribution, so contribution margin per unit is fixed costs divided by break-even units: $80,000 ÷…
Correct answer: $400- A. 20%
- B. 10%
- C. 22%
- D. 16%
Explanation: Contribution margin percentage is contribution margin per unit divided by selling price, multiplied by 100: ($40 ÷ $200) × 100 = 20%.
Correct answer: 20%- A. $20 per unit
- B. $30 per unit
- C. $50 per unit
- D. $40 per unitHire An Accountant
Explanation: Contribution margin per unit equals total contribution margin divided by units sold: $15,000 ÷ 500 = $30 per unit.
Correct answer: $30 per unit- A. $3,000
- B. $2,000
- C. $1,000
- D. zeroTake Economics Courses
Explanation: At the break-even point, total revenue equals total costs, leaving no profit or loss. Therefore, operating income is zero.
Correct answer: zeroTake Economics Courses- A. $35,000
- B. $28,000
- C. $17,500
- D. $82,000
Explanation: Fixed cost at break-even equals contribution margin per unit multiplied by break-even units: $700 × 40 = $28,000.
Correct answer: $28,000- A. breakeven point
- B. cost point
- C. revenue point
- D. quantity point
Explanation: The break-even point is the level of sales or production at which total revenue equals total cost. At this point, operating profit is zero.
Correct answer: breakeven point- A. $2,000
- B. $5,250
- C. $4,280
- D. $3,860
Explanation: Contribution margin percentage equals contribution margin per unit divided by selling price, so selling price = $500 ÷ 25% = $2,000.
Correct answer: $2,000- A. unknown and variable
- B. known and variable
- C. unknown and constant
- D. known and constant
Explanation: Within the relevant range, selling price and variable cost per unit remain constant, while total fixed costs also remain constant.
Correct answer: known and constant- A. 60 units
- B. 30 units
- C. 50 units
- D. 70 units
Explanation: Break-even units are found by dividing total fixed costs by contribution margin per unit: $40,000 ÷ $800 = 50 units.
Correct answer: 50 units- A. 50 units
- B. 60 units
- C. 70 units
- D. 65 units
Explanation: Break-even units = fixed costs ÷ contribution margin per unit, so $30,000 ÷ $600 = 50 units. Hence, option a is correct.
Correct answer: 50 units- A. $200
- B. $400
- C. $600
- D. $800
Explanation: Contribution margin per unit equals selling price multiplied by the contribution margin percentage: $4,000 × 20% = $800.
Correct answer: $800- A. revenues
- B. sold quantity
- C. sold price
- D. bulk price
Explanation: Multiplying selling price per unit by the number of units sold gives total sales revenue.
Correct answer: revenues- A. fixed margin percentage
- B. contribution margin percentage
- C. variable margin percentage
- D. breakeven margin percentage
Explanation: Dividing contribution margin per unit by selling price gives the contribution margin percentage, also called the contribution margin…
Correct answer: contribution margin percentage