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 26 of 48
- A. variable costs
- B. costs of goods sold
- C. number of units sold
- D. all of above
Explanation: For many manufacturing cost-volume-profit analyses, the number of units sold is the main driver of both revenue and unit-related costs.
Correct answer: number of units sold- A. $100,000
- B. $150,000
- C. $250,000
- D. $225,000
Explanation: Break-even revenue is calculated as fixed costs divided by the contribution margin percentage: $50,000 ÷ 20% = $250,000.
Correct answer: $250,000- A. percentage price
- B. margin price
- C. contribute price
- D. selling price
Explanation: Selling price equals contribution margin per unit divided by the contribution margin ratio or percentage.
Correct answer: selling price- A. breakeven revenue
- B. total revenue
- C. fixed revenue
- D. variable revenue
Explanation: Break-even revenue is calculated by dividing fixed cost by the contribution margin ratio or percentage.
Correct answer: breakeven revenue- A. selling margin percentage
- B. cost margin percentage
- C. discount percentage
- D. contribution margin percentage
Explanation: Contribution margin percentage measures the contribution margin per unit as a proportion of selling price, so it is calculated as…
Correct answer: contribution margin percentage- A. 17%
- B. 14%
- C. 4%
- D. 25%
Explanation: Contribution margin percentage is contribution margin per unit divided by selling price: 800 ÷ 20,000 = 0.04, or 4%.
Correct answer: 4%- A. contribution margin per unit
- B. variable margin per unit
- C. selling margin per unit
- D. sale per unit
Explanation: Selling price less variable cost per unit is the contribution margin per unit.
Correct answer: contribution margin per unit- A. $155,000
- B. $125,000
- C. $135,000
- D. $145,000
Explanation: Total variable cost equals variable cost per unit multiplied by units sold: $25 × 5,000 = $125,000.
Correct answer: $125,000- A. $74,400
- B. $7,440,000
- C. $516.67
- D. $51,667
Explanation: At break-even, total contribution margin equals fixed cost, so contribution margin per unit is $62,000 ÷ 120 = $516.67.
Correct answer: $516.67- A. $2,500
- B. $4,000
- C. $3,800
- D. $3,800
Explanation: Selling price is contribution margin per unit divided by the contribution margin percentage: $1,000 ÷ 0.25 = $4,000.
Correct answer: $4,000- A. $97,000
- B. $83,000
- C. $63,000
- D. $12,860
Explanation: Total contribution margin equals contribution per unit multiplied by units sold: $900 × 70 = $63,000.
Correct answer: $63,000- A. revenue analysis
- B. costs analysis
- C. operating income analysis
- D. cost volume profit analysis
Explanation: Cost-volume-profit analysis examines how changes in sales revenue, costs, and operating activity affect operating income.
Correct answer: cost volume profit analysis- A. $13,500
- B. $14,280
- C. $18,500
- D. $17,500Finance
Explanation: At the break-even point, fixed cost equals contribution margin per unit multiplied by break-even units: $500 × 35 = $17,500.
Correct answer: $17,500Finance- A. off shore cost
- B. markup
- C. sunk cost
- D. outsource costAccounting & Auditing
Explanation: Cost-plus pricing begins with a cost base and adds a markup to provide the desired profit.
Correct answer: markup- A. market based approach
- B. cost incurrence pricing
- C. cost plus pricing
- D. locked-in cost pricing
Explanation: Under cost-plus pricing, the seller adds a markup to the product’s cost base to determine the target selling price.
Correct answer: cost plus pricing- A. outsource engineering
- B. reverse engineering
- C. target engineering
- D. off shore engineering
Explanation: Reverse engineering involves disassembling and studying a competitor’s product or processes to understand its design, technology, and cost…
Correct answer: reverse engineering517. The practice of seller to charge higher price for same market offering is classified as __________?
- A. peak-load pricing
- B. elastic pricing
- C. elastic demand
- D. inelastic demand
Explanation: Peak-load pricing charges a higher price during periods of unusually high demand or limited capacity, such as peak electricity usage.
Correct answer: peak-load pricing- A. reverse engineering
- B. value engineering
- C. target engineering
- D. operation engineering
Explanation: Value engineering systematically examines product functions and the value chain to remove unnecessary costs while preserving required…
Correct answer: value engineering- A. target operating income per unit
- B. target cost per unit
- C. total current full cost
- D. total cost per unitFinance
Explanation: Target operating income per unit is the profit a company plans to earn from selling one unit of its offering.
Correct answer: target operating income per unit- A. designed-in costs
- B. locked-in costs
- C. value added cost
- D. non-value added cost
Explanation: A non-value-added cost can be eliminated without reducing the usefulness or benefits customers receive from the product.
Correct answer: non-value added cost