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 34 of 48
- A. customer sustaining costs
- B. customer output unit-level costs
- C. customer batch-level costs
- D. corporate sustaining costs
Explanation: Customer output-unit-level costs arise from activities performed for each individual unit sold, such as processing or delivering one unit.
Correct answer: customer output unit-level costs- A. indirect cost
- B. partial cost
- C. benchmark cost
- D. direct cost
Explanation: An indirect cost cannot be traced to a particular cost object in an economically feasible way, even though it may benefit that object.
Correct answer: indirect cost- A. sales mix variance
- B. sales volume variance
- C. flexible budget variance
- D. static budget variance
Explanation: A static budget variance compares the original static-budget amount with the actual result.
Correct answer: static budget variance- A. customer level indirect costs
- B. customer level direct costs
- C. corporate level direct costs
- D. corporate level indirect costs
Explanation: These costs support a customer rather than a particular product unit, batch, or corporate-wide function, so they are grouped as…
Correct answer: customer level indirect costs- A. $7,500
- B. $6,500
- C. $1,000
- D. $10,000
Explanation: Sales volume variance is the difference between the flexible and static budgets.
Correct answer: $1,000- A. customer sustaining costs
- B. customer output unit-level costs
- C. customer batch-level costs
- D. corporate sustaining costs
Explanation: Customer batch-level costs arise from activities performed for a group of units sold to a customer, such as processing one order or…
Correct answer: customer batch-level costs667. The difference between static budget amount and the flexible budget amount is named as ___________?
- A. sales mix variance
- B. sales volume variance
- C. flexible budget variance
- D. static budget variance
Explanation: The difference between the static budget and the flexible budget reflects the effect of the actual activity or sales volume, and is called…
Correct answer: sales volume variance- A. human resource management costs
- B. corporate administration costs
- C. treasury costs
- D. discretionary costs
Explanation: Corporate administration costs include organisation-wide general management expenses such as executive salaries, rent, and general…
Correct answer: corporate administration costs669. The difference between corresponding static budget and flexible budget amount is called __________?
- A. sales volume variance
- B. sales mix variance
- C. sales quantity variance
- D. market share variance
Explanation: The difference between corresponding static-budget and flexible-budget amounts measures the effect of the change in activity or sales…
Correct answer: sales volume variance- A. discretionary channel costs
- B. corporate-sustaining costs
- C. distribution-channel costs
- D. engineered resource costs
Explanation: Costs relating to a particular distribution route or channel, such as a retail or wholesale channel, are classified as…
Correct answer: distribution-channel costs- A. sales mix variance
- B. sales volume variance
- C. flexible budget variance
- D. static budget variance
Explanation: A flexible budget is adjusted to the actual output level, so the remaining difference between actual performance and that adjusted budget…
Correct answer: flexible budget variance- A. discretionary channel costs
- B. corporate-sustaining costs
- C. distribution-channel costs
- D. customer-sustaining costs
Explanation: Customer-sustaining costs arise from activities performed for an individual customer, such as special support or account management.
Correct answer: customer-sustaining costs- A. discretionary channel costs
- B. corporate-sustaining costs
- C. distribution-channel costs
- D. engineered resource costs
Explanation: Corporate-sustaining costs support the business as a whole and cannot be reasonably traced to a particular distribution channel or…
Correct answer: corporate-sustaining costs- A. human resource management costs
- B. corporate administration costs
- C. treasury costs
- D. discretionary costs
Explanation: Human resource management, corporate administration, and treasury are commonly identified corporate-cost categories.
Correct answer: discretionary costs- A. customer cost hierarchy
- B. customer profitability hierarchy
- C. treasury costing hierarchy
- D. partial costing hierarchy
Explanation: A customer cost hierarchy groups customer-related costs according to the level at which they are incurred, using suitable cost drivers…
Correct answer: customer cost hierarchy- A. partial productivity analysis
- B. treasury cost analysis
- C. customer profitability analysis
- D. customer cost analysis
Explanation: Customer profitability analysis combines revenue from each customer with the costs required to serve that customer, revealing the…
Correct answer: customer profitability analysis- A. treasury costs
- B. discretionary costs
- C. human resource management costs
- D. corporate administration costs
Explanation: Treasury functions manage financing and investment of funds, including financing the construction or purchase of new equipment.
Correct answer: treasury costs- A. $8,000
- B. $80,000
- C. $62,000
- D. $35,000
Explanation: Sales mix variance is found by comparing contribution margin under the budgeted mix with contribution margin under the actual mix: $35,000…
Correct answer: $8,000- A. partial discount
- B. corporate discount
- C. treasury discount
- D. price discount
Explanation: A price discount is the reduction from the listed selling price, often offered to stimulate sales or attract customers.
Correct answer: price discount- A. $2,500
- B. $5,500
- C. $3,500
- D. $2,000
Explanation: Flexible budget variance is measured as the difference between actual performance and the flexible-budget amount at actual output: $5,500…
Correct answer: $2,000